News Summary
Clifford Chance has facilitated a significant financing deal worth $282.5 million for Zelestra, aimed at constructing the Aurora project in Chile. This innovative hybrid solar photovoltaic plant will be backed by a Battery Energy Storage System, enhancing its contribution to renewable energy. Located in the Tarapacá Region, the Aurora project boasts a remarkable capacity and is set to produce 600 GWh of renewable electricity annually, supporting around 200,000 households. The financing represents a transformative step for Zelestra and underscores Chile’s commitment to sustainability.
$282.5 Million Green Financing Secured for Aurora Solar Project in Chile
Clifford Chance has facilitated a significant financing deal of $282.5 million for Zelestra, aimed at supporting the construction of the Aurora solar project located in Chile. This innovative financing arrangement marks an important milestone for Zelestra, being the largest in the company’s history and its first multi-technology project.
About the Aurora Solar Project
The Aurora project is a hybrid solar photovoltaic plant, making strides in renewable energy production in the Tarapacá Region of Chile. Specifically situated in the municipality of Pozo Almonte, the project boasts an impressive installed capacity of 221 MWDC (megawatts direct current) and 187 MWAC (megawatts alternating current). Furthermore, the project includes a sophisticated Battery Energy Storage System (BESS) designed to enhance energy distribution and reliability. The BESS has a capacity of 187 MW and can store up to 935 MWh (megawatt-hours) of energy.
Significance of the Financing
This financing deal has been arranged in collaboration with Natixis Corporate and Investment Banking (Natixis CIB) and BNP Paribas, ensuring that Zelestra has the resources necessary to bring this substantial project to fruition. A VAT facility for the financing was provided by BCI, demonstrating the collaborative efforts of multiple financial institutions to support renewable energy initiatives.
Green Energy Impact
With the expected generation of approximately 600 GWh of renewable electricity annually, the Aurora project is anticipated to provide enough electricity to meet the annual consumption of around 200,000 Chilean households. This makes it one of the most significant energy projects in Latin America and a critical contributor to Chile’s decarbonization efforts.
Distribution and Agreements
The energy generated by the Aurora project will be supplied to the Chilean company, Abastible, through a long-term Power Purchase Agreement (PPA). This arrangement aims to ensure a stable and sustainable energy supply while helping to fulfill growing energy demands in the region.
Legal Oversight and Team Coordination
The legal team at Clifford Chance played a vital role in securing the financing, led by Global Financial Markets partner, José Guardo. The team consisted of counsel Eduardo Sánchez, senior associate Ángel Muñoz, and associates Alejandro Cubillo and Yago López in Spain. The U.S. contingent included partner Fabricio Longhin and legal consultant Pedro Buchanan from the Washington D.C. office, alongside partner Darren Littlejohn from the New York office, showcasing an extensive collaboration across international borders.
Future Prospects
The Aurora project is not just a leap forward in terms of renewable energy, but it also signals an era of clean energy solutions geared towards nighttime energy delivery, a crucial aspect of energy consumption. As one of the largest energy storage schemes in Latin America, Aurora is set to reshape the energy landscape in the region, aligning with global trends of sustainability and energy efficiency.
In conclusion, the successful financing of the Aurora solar project signifies a transformative step towards a sustainable energy future, illustrating the commitment to renewable energy and the innovative solutions required to meet modern energy requirements. As construction begins, the collaboration between Zelestra, financial partners, and legal teams underscores the growing importance of investment in green technology.
Deeper Dive: News & Info About This Topic
Additional Resources
- Iberian Lawyer: Clifford Chance Advises Zelestra on $282M for the Aurora Project
- Wikipedia: Solar Energy
- Mercom India: Project Finance Brief – Origis Secures Swift Air Solar Project
- Google Search: Chilean Renewable Energy
- Wikipedia: Battery Energy Storage System
- Encyclopedia Britannica: Renewable Energy
