Renewable energy development company SunEdison has received finances and commenced construction on the 110MW Quilapilun solar power plant in Santiago, Chile.
The company has arranged $160m non-recourse debt financing from Chile’s CorpBanca and DNB ASA, for the project, which will become one of Latin America’s largest solar project.
SunEdison will sell power generated from the project through long-term power purchase agreements with local electricity suppliers.
It will supply power to Sistema Interconectado Central (SIC), which is the main alternating current power grid in Chile.
TerraForm Power, a part of SunEdision group is expected to acquire the plant once it becomes operational in the first quarter of 2016.
However, SunEdison Services will be responsible for the operation and maintenance of the power plant, and will provide 24/7 asset management, monitoring and reporting services.
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By GlobalDataSunEdison Latin America vice president Carlos Barrera said: "This project is our first solar plant in the Metropolitan Region, and further advances our position as a renewable energy leader in Chile.
"Solar energy has become cost competitive with other energy generation sources in the country. With solar, we are able to supply regulated market consumers with clean energy at lower prices than they pay now."
TerraForm Power chief executive officer Carlos Domenech said: "This solar project more than doubles our footprint in the fast-growing Chilean solar market and provides significant value to our shareholders."
