CarbonFree Technology Inc. is acquiring a portfolio of Chilean solar projects that are at the construction stage. The Toronto-based firm has also inked an agreement to buy an additional 15 ground-mounted solar projects in the country which have an aggregate capacity of 65 MW.
The solar projects, most of which are sized at either 3 MW or 9 MW, will generate electricity to be sold to the Chilean grid under the Pequeños Medios de Generación Distribuidos (PMGD) small distributed generation program. This program includes a self-dispatch scheme which allows projects to connect to the grid and not be curtailed. A stabilized price for each area is calculated every 6 months by the Comisión Nacional de Energía (National Energy Commission) based on an approximation of short-term PPA prices in the market and forecast weighted average spot prices for the next four years.
All of the projects will use Tier 1 solar modules and inverters and single-axis trackers from leading equipment suppliers. CarbonFree has also negotiated EPC agreements for the projects with a small number of experienced and bankable solar contractors.
Construction of the initial projects is beginning immediately. The equity financing contemplates further acquisitions in 2017 and 2018 should attractive projects become available.