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 Advises on $282.5 Million Green Financing for Aurora Solar Project in Chile
Clifford Chance has played an essential role in securing a substantial $282.5 million green financing deal for Zelestra’s innovative Aurora Solar Project located in Chile. This financing marks a significant milestone as it represents the largest financial arrangement in Zelestra’s history, emphasizing the project’s importance in the growing renewable energy sector.
Aurora Solar Project Overview
The Aurora project is an ambitious hybrid solar photovoltaic plant that also incorporates a cutting-edge Battery Energy Storage System (BESS). Situated in the municipality of Pozo Almonte, within the Tarapacá Region of Chile, this project is set to make waves in the energy landscape, highlighting both traditional solar energy generation and advanced energy storage capabilities.
With an impressive installed capacity of 221 MWDC (megawatts direct current) and 187 MWAC (megawatts alternating current), the Aurora facility is positioned to deliver a significant amount of power to the national grid. The BESS component boasts a capacity of 187 MW and is capable of storing 935 MWh (megawatt-hours), making Aurora one of the largest energy storage schemes in Latin America.
Financing Structure and Legal Support
The financing had a multi-faceted structure, arranged through partnerships with Natixis Corporate and Investment Banking (Natixis CIB) and BNP Paribas, with BCI providing a VAT facility. The legal advisors from Clifford Chance were led by Global Financial Markets partner José Guardo, alongside a skilled team including counsel Eduardo Sánchez, senior associate Ángel Muñoz, and associates Alejandro Cubillo and Yago López based in Spain. Additionally, the U.S. team was comprised of partner Fabricio Longhin and legal consultant Pedro Buchanan from Washington D.C. along with partner Darren Littlejohn from New York, showcasing a collaborative effort across borders for the project.
Energy Supply and Environmental Impact
Aurora’s design is noteworthy as it allows for the utilization of solar energy even during nighttime hours, thanks to its energy storage capabilities. The project’s energy output is projected to reach approximately 600 GWh of renewable electricity annually. This amount of generated electricity can power around 200,000 Chilean households, demonstrating its potential to make a significant impact on the country’s energy needs.
Through the establishment of a long-term Power Purchase Agreement (PPA) with Chilean company Abastible, the Aurora project will contribute to the energy supply. More importantly, it is expected to drive Chile’s ongoing efforts toward decarbonization, further supporting the nation’s commitment to sustainable energy solutions.
Conclusion: A Leap Forward for Zelestra and Chile’s Energy Sector
The Aurora project is not just Zelestra’s first multi-technology initiative but also serves as a landmark in the evolution of renewable energy in Chile. With its hybrid solar and energy storage combination, it positions itself as a crucial player in the shift towards a greener future. The collaboration between top-tier legal advisors and financial institutions underscores the importance of strategic partnerships in making such large-scale renewable projects a reality.
As energy demands continue to climb, the successful financing and implementation of the Aurora Solar Project represent a promising leap forward, not just for Zelestra, but for the entire Chilean energy sector, pushing boundaries and setting new standards in renewable energy solutions.
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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
