First Solar receives loans for 141MW Luz del Norte solar power plant in Chile

The Overseas Private Investment Corporation (OPIC) and International Finance Corporation (IFC) has granted $290m in loans to First Solar for the 141MW Luz del Norte solar power plant in Chile.

Of the total loan, IFC, a member of the World Bank Group, has approved a $60m loan whereas the US Government’s development finance institution, OPIC, will provide a loan of up to $230m for the project.

First Solar Americas senior vice president Tim Rebhorn said ,"This investment support from OPIC and IFC is instrumental in bringing the project in Chile to life."

First Solar has been working with the Chilean Government, authorities and the local community to design, develop and construct the project near the city of Copiapo in the Atacama Desert.

OPIC president and CEO Elizabeth Littlefield said that the project marks step ahead in furthering solar power development in Chile, where the potential for this clean, renewable resource is unrivalled.

"OPIC is proud to support this investment in Chile while helping an innovative American company like First Solar expand its operations and create new markets for its products abroad," Littlefield added.

The electricity generated from the project will be supplied into the Chilean Central Interconnected System to support the country’s goal of increasing renewable energy to 20% of total generation capacity by 2025.

IFC Global Head of Infrastructure Bernard Sheahan said the Chile develops solar resources as a low cost element of energy supply.

"This engagement with Luz del Norte and First Solar exemplifies IFC’s efforts to support cutting edge transactions in emerging markets’ infrastructure," Sheahan added.

Image: First Solar to build largest PV solar power plant in Latin America. Photo: courtesy of franky242/Freedigitalphotos.net.