Solar Q4 2023 Report

Akuo, a renewable energy power producer and project developer and its UK-based partner Atlantica Sustainable Infrastructure closed the financing for 80 MW of solar projects in Chile. The portfolio comprises nine photovoltaic power projects which are currently under construction.

Located in the Regions of Maule (VII), Ñuble (XVI), Araucanía (IX) and Biobío (VIII), the projects are all situated in the south of Santiago de Chile. Once commissioned, the portfolio will deliver enough electricity to power nearly 60,000 households. They will avoid the emission of over 60,000 tons of CO2* each year of operation and provide a sustainable and local source of clean electricity. These nine solar farms will help the country to diversify its electricity mix, which currently depends heavily on fossil fuels.

The portfolio benefits from the country’s PMGD (Pequeños Medios de Generación Distribuida) regime. Akuo and Atlantica Sustainable Infrastructure are the equity sponsors, and DNB provided the debt financing.

Martin Bocage, Akuo Country Manager for Chile, Argentina, and Uruguay, says: “Akuo is a committed stakeholder to Chile’s energy transition and we stick to our words. Construction is ongoing and we will soon inject electricity for the benefit of the citizens. Chile’s renewable energy strategy encourages us to continue growing and investing in this country.”

Esteban Uauy, Senior VP for project finance in Latam, states: “DNB is very pleased with this financing as it continues to underpin the importance of distributed generation in Chile while supporting the growth and development of two clients deeply committed to renewables.”

According to Mercom’s Q1 2023 Solar Funding and M&A report, large-scale project funding came to $5.3 billion in 62 deals, a decrease of 46% compared to $9.8 billion in 52 deals in Q4 2022.

BayWa r.e., a utility-scale solar project developer, recently secured a $115 million credit facility from Nomura to support the development of utility-scale solar and solar+storage projects as it continues to grow its footprint in the U.S. clean energy market.

The credit facility will initially support projects totaling 1.1 GW of solar and 188 MWh of battery storage in several states, including North Carolina, Illinois, Kentucky, Arkansas, and Washington. The projects will be brought online starting in 2024 through 2026.