First Solar, providers of solar energy technology will construct a 141 MW Luz del Norte plant with a loan amount of $230 million from the Overseas Private Investment, the U.S. government financial institution.
The loan guarantee is a part of President Barack Obama’s initiative to expand clean energy technology in Chile. The power plant will be built at Chile’s Atacama Desert.
“Both countries are eager to adapt a clean energy economy. Certain collaborations, including the construction of a solar plant in Chile that helps to meet their energy needs will soon be announced.” Obama told The Associated Press.
Obama has initiated talks with Michelle Bachelet, President of Chile, regarding an energy interaction plan between two countries. U.S. is supporting Chile’s renewable energy technology, and has approved $900 million of loan guarantee for six projects over a year. The International Finance has agreed upon a $60 million loan for Luz del Norte project.
Tim Rebhorn, senior vice president, First Solar, America said, “The Latin American region has a growing need for efficient energy solutions. This investment support from OPIC and IFC is instrumental for the project initiative.”
The Atacama desert receives steadiest concentrations of direct sunlight. The country wants to increase renewable energy to 20 percent of its total power generation by 2025.
Elizabeth Littlefield, president, CEO, OPIC, said, “This project is crucial for Chile’s solar power development, with the potential for renewable resources remaining untapped. OPIC is supporting First Solar expand the operations and create new markets for their products.”