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The Espejo de Tarapacá project, designed to combine a 300 MW pumped-storage hydroelectric (PSH) plant and a 561 MW-AC photovoltaic (PV) solar plant in Chile, was formally closed in October 2022 before construction began. Despite initial alignment with Chile's decarbonization goals, the project failed because the Project Company could not secure a power-purchase agreement (PPA) or private investors. The evaluation found that the project's relevance declined as the Chilean government prioritized market competition and lithium-based storage over the preferential treatment requested for PSH. While the project failed its primary energy goals, it achieved some positive social outcomes through community engagement in San Marcos and Rio Seco, including women's empowerment and the establishment of a community office. The report concludes that the GCF lacked sufficient risk analysis during formulation, was too slow in reviewing restructuring proposals, and failed to provide the promised high-level policy advocacy to the Chilean government.