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.
Clifford Chance Facilitates $282.5 Million Green Financing for Aurora Solar Project in Chile
In a significant development for renewable energy in Chile, Clifford Chance has successfully advised Zelestra on a substantial financing deal amounting to $282.5 million. This financing is earmarked for the construction of the Aurora project, a pioneering hybrid solar photovoltaic plant that will feature an advanced Battery Energy Storage System (BESS).
Aurora Project Overview
Situated in the municipality of Pozo Almonte, located in the Tarapacá Region of Chile, the Aurora project boasts a robust installed capacity of 221 MWDC (megawatts direct current) and 187 MWAC (megawatts alternating current). The plant’s Battery Energy Storage System has a notable capacity of 187 MW and the ability to store 935 MWh (megawatt-hours) of electricity, making it one of the largest energy storage solutions in Latin America.
Financing Arrangement
This landmark financing was expertly arranged in collaboration with Natixis Corporate and Investment Banking and BNP Paribas. Additionally, a VAT facility for the financing was provided by BCI. The Aurora project represents the largest financing initiative in Zelestra’s history and marks the company’s inaugural venture into a multi-technology project.
Energy Supply and Environmental Impact
The designed solution for the Aurora project enables the delivery of solar energy even during nighttime hours, thanks to its advanced energy storage capabilities. The energy produced will be supplied to the Chilean company Abastible through a long-term Power Purchase Agreement (PPA). It is estimated that this project will generate approximately 600 GWh of renewable electricity annually, which is sufficient to power around 200,000 Chilean households.
Contribution to Decarbonization
The Aurora project is anticipated to play a pivotal role in Chile’s efforts to enhance its decarbonization initiatives. As renewable energy sources gain traction, projects like Aurora are crucial in transitioning towards a sustainable energy future, which is essential for tackling climate change and reducing greenhouse gas emissions.
Legal Team Behind the Deal
The successful execution of this deal was largely attributed to the efforts of the legal team at Clifford Chance, which was led by Global Financial Markets partner José Guardo. Critical support came from counsel Eduardo Sánchez, senior associate Ángel Muñoz, and associates Alejandro Cubillo and Yago López based in Spain. The U.S. team, contributing valuable expertise, included partner Fabricio Longhin and legal consultant Pedro Buchanan from the Washington D.C. office, along with partner Darren Littlejohn from the New York office.
Conclusion
Overall, the Aurora project represents a significant advancement in the renewable energy landscape of Chile. With its innovative design, large-scale energy storage capabilities, and commitment to sustainability, it sets a benchmark for future projects in the region. The successful completion of the financing not only enhances Zelestra’s portfolio but also boosts Chile’s position as a leader in clean energy initiatives in Latin America.
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
Author: Construction FL News
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