Consideration of funding proposals – Addendum IX Funding proposal package for FP115

The Espejo de Tarapacá project in Chile proposes the construction of a 300 MW pumped storage hydroelectric (PSH) plant and a 561 MW-AC photovoltaic (PV) solar plant. The project aims to provide a renewable baseload energy solution to the Chilean national grid, reducing CO2 emissions by an average of 1,001,187 tonnes per year. The proposal requests US$ 60 million in direct equity from the Green Climate Fund (GCF) to act as an 'anchor' investor, helping to overcome market barriers and attract an additional US$ 1 billion in private sector debt and equity. Beyond energy generation, the project includes adaptation measures for local fishing communities in the Tarapacá Region, such as providing stable drinking water via a desalination plant and funding for economic diversification.

• The project consists of two integrated facilities: a 300 MW pumped storage hydroelectric (PSH) plant using the Pacific Ocean as a lower reservoir and a 561 MW-AC photovoltaic (PV) solar plant with single axis tracking.
• The project is expected to avoid an average of 1,001,187 tonnes of CO2 per year, totaling 35 million tonnes of CO2e over a 35-year evaluation period.
• The total project cost is approximately US$ 1,094 million, with the PSH plant accounting for 50% (US$ 543.5 million), the PV plant for 39% (US$ 425.7 million), and financing costs for 11% (US$ 124.8 million).
• The GCF is requested to provide US$ 60 million in direct equity, representing approximately 13% equity participation, to serve as an 'anchor' investor and de-risk the project for other private investors.
• The project aims to address the intermittency of solar energy by using the PSH plant to store energy as water during the day and generate electricity at night, providing a 24/7 renewable baseload solution.
• Adaptation benefits for local communities in San Marcos and Rio Seco include the provision of stable drinking water from a desalination plant, raising supply from ~20L/day per person to ~150L/day.
• A Gender Action Plan is included to empower women in the male-dominated fishing industry through psychological training, microcredits, and business management mentoring.
• The project identifies three primary barriers to entry: energy policy and regulatory challenges (lack of remuneration for storage benefits), difficulty securing long-term energy agreements (PPAs), and market distrust of innovative start-up projects.
• The Independent Technical Advisory Panel (TAP) scored the project's impact potential and paradigm shift potential as 'high', but rated sustainable development potential and efficiency/effectiveness as 'medium' due to the absence of a detailed communication plan.

APA

Green Climate Fund (2019). Consideration of funding proposals – Addendum IX Funding proposal package for FP115. https://www.greenclimate.fund/sites/default/files/document/gcf-b23-02-add09.pdf

Chicago

Green Climate Fund. Consideration of funding proposals – Addendum IX Funding proposal package for FP115. 2019. https://www.greenclimate.fund/sites/default/files/document/gcf-b23-02-add09.pdf.

Wikipedia

{{cite report |author=Green Climate Fund |title=Consideration of funding proposals – Addendum IX Funding proposal package for FP115 |date=14 June 2019 |url=https://www.greenclimate.fund/sites/default/files/document/gcf-b23-02-add09.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greenclimatefund2019consideration, author = {{Green Climate Fund}}, title = {{Consideration of funding proposals – Addendum IX Funding proposal package for FP115}}, institution = {Green Climate Fund}, year = {2019}, month = jun, url = {https://www.greenclimate.fund/sites/default/files/document/gcf-b23-02-add09.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }