Chile will seek bids by the first half of next year to build a solar farm of more than 50 MW in its Atacama desert.
The government will grant $20m and lend $400m for building the solar farm in northern Chile, said Energy Minister Jorge Bunster. The European Union will provide an additional $18m grant.
On completion, the plant would be South America’s largest, said Bunster.
Government backing may encourage banks to lend to the project, even without a long-term electricity contract, Maria Gabriela da Rocha Oliveira, a Sao Paulo-based analyst told Bloomberg.
“This move may be to get the ball rolling,” she said.
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