US and Chile Collaborate Solar Power Plant

After a meeting between President Obama and Chilean President Michelle Bachelet, an agreement was struck that would allow the United States to fund the construction of a solar power plant in Chile. According to an article recently completed by The Hill, the arrangement has many benefits for both countries.

The collaboration between both nations simply makes sense, as both countries are equally interested in transitioning to a clean energy economy. For Chile, the plant will help diversify the country’s energy sources. The plan also supports President Obama’s national exports agenda; the completed project will facilitate roughly ninety seven million dollars in exports for the United States. This plan is achieved through the nation’s offer to fund the project. The Overseas Private Investment Corporation, otherwise known as the OPIC, approved a loan for the project and has guaranteed to deliver two hundred and thirty million dollars to support the construction of the plant.

This is merely the last in a line of efforts between President Obama and the OPIC to bring solar energy to Chile and, by association, exports for the United States. The investment corporation has approved six similar projects since 2013, all to be located in Chile. Between all proposed plants, the OPIC has approved nine hundred million dollars in loan guarantees. This figure and initiative makes the United States the largest lender for renewable energy in Chile.

The six plants are expected to cut over two million tons in carbon dioxide emissions annually. Between all six projects, it is expected that over two hundred and ninety million dollars in exports for the United States will be generated. In addition, the initiative between the two countries will support more than four hundred jobs in the United States.

The latest plant is to be located in Chile’s Atacama Desert. The 141 megawatt solar plant will be the largest existing solar plant in Latin America, once completed.

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