Irish RE Firm Raises $580Mn For 571 MW in Chile

Mainstream Renewable Power Achieves Financial Closure With $580 Million For 571 MW Solar & Wind Capacity In Chile Under Phase I Of 1.3 GW Andes Renovables Platform; Chooses Sterling & Wilson To Construct 145 MW Solar Farm
08:40 AM (Beijing Time) - 07. November 2019

Having secured 27% of total allotted capacity in Chile’s 2016 technology neutral auction, Mainstream is mandated to start supplying power to the grid by 2021. The Andes Renovables platform is scheduled to come online by 2021 and 2022. (Photo Credit: Mainstream Renewable Power)

Key Takeaways

  • A consortium of six banks have lent $580 million for construction of Mainstream Renewable Power’s 571 MW wind and solar assets in Chile
  • This capacity is already under construction with the sole PV project of 145 MW capacity being built by Sterling and Wilson
  • It is being built as Phase I of 1.3 GW Andes Renovables Platform of Mainstream in Chile which the company terms as one among the biggest wind and solar generation platforms of Latin America
  • Under Phase 2 and 3, four wind projects with 525 MW and two PV projects with 205 MW capacity will be constructed for which financial closure is likely to be announced in coming months

Mainstream Renewable Power, a globally active renewable energy company with Irish origins, has raised $580 million in debt to fund the construction of Phase 1 of what it terms as one of the biggest wind and solar generation platforms of Latin America with 1.3 GW of total capacity in Chile.

The platform is called Andes Renovables to be constructed and commissioned in three phases. Under Phase I called Condor, 571 MW of total capacity will be built and commissioned by 2021 in the form of three wind power projects of 426 MW and a solar power plant of 145 MW.

The Rio Escondido Solar Farm with 145 MW capacity will be located in the Atacama region with Indian EPC company Sterling and Wilson providing its services. Construction on all facilities under Phase I is currently underway.

Under Phases 2 and 3 called Huemul and Copihue, four wind projects with 525 MW and two solar plants with combined capacity of 205 MW will be built with commercial operations expected in 2021 and 2022. Financing for the next two phases is expected to be completed in the coming months and will be announced along with the news of their construction. In all, the entire Andes Renovables platform will cost a total of $1.7 billion.

Mainstream has arranged $580 million financing for Phase I from a consortium of six banks, namely CaixaBank, DNB, KfW IPEX-Bank, Natixis, SMBC and Societe Generale while Banco Santander will provide VAT facility. This, as per the company, is one of the largest renewable energy debt financing deals undertaken in the region in 2019.

Mainstream boasts of a huge development pipeline of 9 GW of assets across Latin America, Africa and Southeast Asia. In Chile, it secured 27% of the allotted capacity in the country’s largest technology-neutral electricity auction in 2016 and  secured contracts to supply 3,366 GWh of power as of 2021.

In July 2019, it announced securing environmental qualification resolution for the 123 MW Valle Escondido Solar PV Project in Chile, also to be located in Atacama, and back then it claimed to have 4 GW of wind and solar portfolio in the country (see 123 MW Chile PV Plant Secures Enviro Approval).

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani