Cap Vert Energie reaches financial close for 33 MW of middle-sized DGPV projects in Chile

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French independent power producer Cap Vert Energie (CVE) has announced that its Chilean unit, CVE Chile has secured $29.5 million in funds, plus a $7.5 million VAT funding facility from Chile-based financial services provider, Banco Security.

Cap Vert said the funds will be used for 11 solar power plants with a capacity of 3 MW each in Chile, including three facilities it commissioned last year. The company added that, of the eight facilities, which are not yet operational, two are under construction, while work on three more is set to begin, and another three are in the process of securing final approvals.

All of the projects, the company said, are being developed under Chile’s Chile’s PMGD Program for distributed renewable energy projects 9 MW and under in size, a program which is now seeing very strong levels of development, at least in terms of new approved projects, as reported by the Chilean National Energy Commission (CNE) in December.

The scheme enables project developers to avoid spot market risks and requires a project’s license outside of the country’s auction mechanism. Under the program, owners of renewable energy power generators are granted stabilized prices that are higher than spot market prices, because they are calculated by the CNE with a mid-term perspective. Yet, the program ensures automatic connection to the medium voltage grid and certainty that all energy generated will be injected into the power network.

In a statement provided to pv magazine in July, Cap Vert CEO, Pierre de Froidefond stressed that the company’s business model is based on distributed energy produced locally and sold through PPAs to meet the needs of companies and communities.

“That’s why we target projects that are in the right locations, which means densely populated, offering multiple PPAs’ opportunities. In terms of business strategy, we favour local partnerships to accelerate our time to market and quickly gain local experience,” De Froidefond said at the time.

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