By Mandar Bakre on Thursday, 11 July 2024
Category: Buzz

Grenergy closes funding for Phase 1 and 2 of world's largest energy storage project in Chile

Spanish company Grenergy announced it had achieved financial closure for Phase 1 and 2 of Oasis de Atacama, the world's largest energy storage project, located in Chile.

Grenergy said the agreement was signed with a syndicate of international banks. Specifically, the company signed a $345 million green loan -- with other complementary credit lines -- with a group of financial institutions that included BNP Paribas, Natixis Corporate & Investment Banking, Societe Generale, The Bank of Nova Scotia and SMBC.

The solar and battery hybrid Oasis de Atacama, located in northern Chile, is the world's largest energy storage project, and will be able to power more than 145,000 homes a year, while reducing more than 146,000 tonnes of CO2 emissions, Grenergy said in a release.

This financing agreement between Grenergy and the banks covers the first two phases of the project, corresponding to 220 MWp of solar and 1.24 GWh of storage. The phase is expected to be connected by the end of this year, while the remaining phases will mostly be connected before the end of 2025.

David Ruiz de Andrés, Executive Chairman of Grenergy, said in the release: "this operation demonstrates the bank's confidence in the hybridization of solar plants with storage, and in Grenergy's business model."

Oasis de Atacama, to which Grenergy will allocate up to $1.4 billion, has already contracted 75 percent of its energy output through various long-term contracts (PPAs), the company claimed. 

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