DEG finances solar power generation in Chile

• 18.5m US-dollars for the expansion of solar park La Huayca
• Projected total capacity of 30.5 MW

The Atacama Desert in northern Chile is considered to have the highest level of sunshine in the world, its level of solar irradiation hardly changes over the course of the year. The region therefore offers ideal preconditions for a predictable and constant solar power production. Total capacity of the existing photovoltaic system installed in that region nevertheless only amounts to 3.6 MW.

Solar park La Huayca makes up 1.4 MW of this capacity. The pilot plant’s capacity will now be expanded to 30.5 MW. DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, provides the operating company SPS LA HUAYCA S.A. with a loan of 18.5m US-dollars to cover the necessary investment. Other investors include the International Finance Corporation (IFC), a member of the World Bank Group, which acts as lead arranger and provides a loan of 14m US-dollars. Another 14m US-dollars are provided by the IFC-Canada Climate Change Program, financed by the Government of Canada.

Currently Chile’s energy requirements are mainly met with fossil fuels. It is, however, planned to increase the share of renewable energy. In this context, a plant such as La Huayca could set an example – also in preventing climate damaging emissions: The plant is expected to avoid emissions of 24,500 tons of CO2 per year that would be generated during conventional power generation.

La Huayca is majority-owned by the German photovoltaic manufacturer saferay holding GmbH. “The experiences gained from the operation of the pilot plant have been the prerequisite for our expansion plans”, said Dr Marko Schulz, founder and Managing Director of the Berlin-based saferay holding GmbH.

Many German enterprises have valuable know-how in the areas of renewable energies and energy efficiency, which is in demand in developing and emerging-market countries. With their commitment, German enterprises can make a contribution to development while at the same time benefiting from the opportunities arising from these markets. Next to climate and environment protection, DEG's financing and accompanying activities of German companies therefore are among its strategic key areas.