SANTIAGO Nov 21 Spanish energy company
Ibereolica and French state energy firm EDF Energies Nouvelles
have closed financing with three banks to construct a
115-megawatt wind farm in north-central Chile, two sources with
knowledge of the process said on Monday.
According to the sources, Japan's SMBC, Credit
Agricole, and Norway's DNB have agreed to
provide financing for the proposed Cabo Leones I Wind Farm at
the southern edge of Chile's Atacama Desert.
At 115 megawatts, Cabo Leones I is among the largest wind
farms in the South American nation to have closed financing, the
last hurdle needed to begin construction.
The total capital expenditure of the project is
approximately $200 million with $140 million of debt, the
SMBC, DNB, Credit Agricole, and EDF did not immediately
respond to request for comment. Ibereolica declined to comment.
Companies involved in non-conventional renewable energies -
mainly wind and solar - have flooded into Chile in recent years,
attracted by excellent solar resources, high energy prices, and
In a massive, 12.3 terawatt public auction in August to
supply Chile with power for two decades from the 2020s, wind and
solar companies won the majority of tendered power.
Ibereolica and projects in which the Spanish company has a
stake won significant chunks of the auctioned power with bids in
the $47 to $62 per megawatt-hour range.
However, difficulties faced by many of the auction winners
in acquiring financing have raised questions among some
observers as to whether the prices offered by renewable energy
providers are realistic.
Wind turbines for the project will be provided by Spanish
(Reporting by Gram Slattery; Editing by Caroline Stauffer and