MercoPress. South Atlantic News Agency

Chile with World Bank support turns to wind energy

The World Bank Group is sponsoring with 61.5 million US dollars the construction of the first wind farm in Chile, advancing the development of renewable energy in Chile.

The Totoral Wind Farm, situated 300 kilometres north of Santiago, will consist of 23 two-megawatt Vestas wind turbines. The project is expected to generate an average of 110 gigawatt hours per year of electricity for the Chilean central grid, relieving the significant supply constraints the country is experiencing. The WB International Finance Corporation will invest 30.75 million USD for its own account and syndicate $30.75 million, to be funded by DnB NOR, the leading Norwegian financial services firm. The project developer is Norvind S.A., a special-purpose vehicle set up by the project sponsors, Statkraft Norfund Power Invest A.S, the Norwegian power developer, and its Chilean partner, Centinela. Centinela, controlled by the Pavez family, is an investment company with interests in a wide range of industries. The Totoral Wind Farm is expected to be one of the largest operating wind farms in Chile when it is completed in 2009. It will also be the first renewable energy project to be financed under Chile's new "Non-Conventional Renewable Energy Law," which was passed in March 2008. IFC is supporting the government of Chile's objectives of rapidly increasing and diversifying its energy supply. In the past five years, IFC has invested over 290 million USD in five projects with a focus on supporting the expansion of the country's traditional energy sources such as hydro, as well as less traditional energy sources such as wind.