EIG Global launches thermal solar project in Chile, LatAm's first

Gulf Island Fabrication

08/06/2021 21:41

By Fabian Cambero
    MARIA ELENA, June 8 (Reuters) - U.S. private equity firm EIG
Global Energy Partners on Tuesday inaugurated Latin America's
first thermal solar plant, a project in Chile's sun-drenched
Atacama desert that the South American nation hopes will smooth
its path to a low-carbon future. 
    The striking Cerro Dominador, a $1.4 billion project
announced in 2013, will use technology allowing storage of the
sun’s heat to generate electricity for hours, including at
night, unlike traditional photovoltaic solar- or
wind-powered-plants that produce only while the sun is shining
or the wind is blowing.
    Chilean President Sebastian Pinera in a speech at the plant
called the project "an enormous contribution to the development
of our country and the quality of life of our people."
    Chile, with bountiful sun and wind, has pledged to use its
renewable advantage to phase out coal-fired power by 2040 and be
carbon neutral by 2050. 
    The Cerro Dominador project aims to bridge the gap following
removal of the coal plants, helping to supply Chile's grid with
power at times when the wind and sun cannot. 
    Financial setbacks during the construction phase have
hampered its competitiveness, but Cerro Dominador CEO Fernando
Gonzalez told Reuters the company was confident it would
nonetheless meet targets.
    "Of course a plant that one hopes to build in 3 years and
then takes 6  years  ...has a financial impact," Gonzalez said.
    "The return [on investment] is lower than initially thought,
but we are working to revive it, to sign new contracts, to sell
additional energy that we did not have contracted."
    The project will produce a total of 210 MW of clean energy,
enough to supply more than 380,000 homes in Chile, according to
government and company statistics. 
    Cerro Dominador was built by a consortium between Spain's
Abengoa and Acciona energy firms, with financing from the Laif
Program of the European Union and KfW of Germany, Chile
development agency Corfo, and others.

 (Reporting by Fabian Cambero, writing by Dave Sherwood; Editing
by David Gregorio)
 ((dave.sherwood@thomsonreuters.com; +56 9 9138 1047, +56 2 2370
4224; Reuters Messaging:
dave.sherwood.thomsonreuters.com@reuters.net))