World Bank Group Supports Renewable Energy Projects in Chile and Armenia
February 2009: The International Finance Corporation (IFC), a member of the World Bank Group, is financing the construction of the Totoral Wind Farm, Chile's first-ever project-financed wind farm. In related news, the World Bank's Vice President for Europe and Central Asia approved a grant of US$1.5 million for the Armenia Geothermal Energy Development project funded under the Global Environment Facility's (GEF) Geothermal Energy Development Program (GeoFund).
The Totoral Wind Farm, situated 300 kilometers north of Santiago, will consist of 23 two-megawatt Vestas wind turbines, and is expected to generate an average of 110 gigawatt hours per year of electricity for the Chilean central grid. IFC will invest US$30.75 million for its own account and syndicate US$30.75 million, to be funded by DnB NOR, the leading Norwegian financial services firm.
The Armenia Geothermal Energy Development project will provide technical assistance to conduct comprehensive geothermal field investigation works for Gridzor and Karkar sites (in the Gegharkunik and Sjunik regions, respectively). The objective of the GEF's GeoFund is to systematically promote the use of geothermal energy in Europe and the Central Asia region by removing barriers, and allowing for diversification in energy use and an increase in the demand for similar projects. [IFC Press Release] [World Bank Press Release]