Atlas Renewable Energy has secured a landmark $475 million in financing for its Sol del Desierto solar-plus-storage project in Chile’s Antofagasta Region. This pioneering project, which will include a 244 MWp solar plant and a 400 MWh battery energy storage system (BESS), is set to provide a stable supply of clean energy to Chile’s vital mining sector.
Financial Agreement for Chile solar storage
Atlas Renewable Energy has secured a significant financial boost for its Sol del Desierto solar-plus-storage project. The company finalized a $475 million senior financing package provided by a distinguished group of international lenders, including DNB Bank ASA, KfW IPEX-Bank GmbH, Sumitomo Mitsui Banking Corporation, and the Korea Development Bank.
The comprehensive financing package consists of a $350 million credit facility, a $25 million letter of credit, and a $100 million revolving credit facility designed to support the project’s ongoing operations and maintenance. Understanding the financial architecture of such large-scale projects is complex, involving significant capital for equipment, construction, and long-term upkeep, which is detailed in a typical solar panel manufacturing plant cost breakdown.
This robust financial agreement was solidified after Atlas Renewable Energy signed a 12-year power purchase agreement (PPA) with Chile’s main grid operator, Coordinador Eléctrico Nacional. The PPA provides the long-term revenue certainty essential for such an investment and directly supports Chile’s national strategy to increase renewable energy integration and reduce carbon emissions.
Project Details and Objectives for Chile solar storage
The Sol del Desierto project is strategically located in the Antofagasta region of Chile, an area renowned for having some of the highest solar irradiation levels in the world. This makes it an ideal location for the 244 MWp solar plant. The entire solar panel manufacturing process is geared towards creating efficient modules that can harness this abundant energy.
Crucially, the project integrates a 400 MWh battery energy storage system (BESS). This combination is transformative, as it addresses the inherent intermittency of solar power. The BESS will store excess solar energy generated during peak production hours and dispatch it during periods of high demand or when the sun isn’t shining, ensuring a reliable, 24/7 power supply. This stability is particularly critical for energy-intensive consumers like the regional mining industry, a primary offtaker for the project’s clean power.
Carlos Barrera, CEO of Atlas Renewable Energy, emphasized the project’s strategic importance. “This project is a testament to our commitment to enhancing Chile’s energy infrastructure and supporting the country’s renewable energy transition. By combining solar power with energy storage, we are creating a more resilient and sustainable energy system,” Barrera said.
The project is expected to generate 789 GWh of clean energy annually, enough to power approximately 470,000 Chilean households and displace over 369,000 tons of CO2 emissions per year. Sol del Desierto directly aligns with Chile’s ambitious energy goals, which include achieving 60% renewable energy in the electric grid by 2035 and reaching carbon neutrality by 2050.
Community Engagement and Environmental Benefits of Chile solar storage
Beyond its technical and financial merits, Atlas Renewable Energy has embedded strong community and environmental principles into the Sol del Desierto project. The company has implemented a local workforce training program, ensuring that surrounding communities directly benefit from the economic opportunities created by the project’s development and operation. Furthermore, the project’s design includes measures to protect and preserve the unique local flora and fauna of the Atacama Desert.
This project exemplifies a growing trend across Latin America, where renewable energy investments are increasingly tailored to meet the needs of large industrial sectors. By providing reliable, clean power to industries like mining, such projects help decarbonize critical parts of the economy. The combination of solar power and energy storage in the Sol del Desierto project represents a critical step forward in achieving these goals, creating a model for future developments in the region.
The Sol del Desierto solar-plus-storage project is a major milestone for Atlas Renewable Energy and Chile’s renewable energy sector. With financing secured, the project is poised to play a crucial role in stabilizing the national grid, providing clean energy to a key industry, and contributing significantly to the country’s carbon reduction targets.
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