IDB grants loan to Chile for energy transition
The institution approved a loan valued at 300 million dollars in order to support this process in Chile
The Inter-American Development Bank (IDB) approved a $300 million loan to support the energy transition process in Chile, according to a statement.
This is the second and last operation of a policy reform support program in the Andean country. The first $50 million operation was approved by the IDB in June 2021.
Among the actions to be implemented in this second operation are critical pricing processes to reflect the modernization of distribution regulation and guarantee an affordable electricity service, as well as accelerating the participation of the population in the use of clean and sustainable energies that displace fossil and polluting energies.
Likewise, it will support the decarbonization of the energy matrix and, among other measures, the formulation of energy scenarios and projections consistent with carbon neutrality in 2050, in order to update the Long-Term Energy Planning, the acceleration of the coal-fired plants, the elaboration of the first just transition strategy, and the regulation to facilitate intermittent renewable connections and electricity storage.
In addition, the program will advance in closing the gender gap by promoting equal pay, the inclusion of more women in the energy sector, and gender parity in civil society institutions associated with the energy sector.
On the other hand, it is expected to promote technological innovation with the approval this year of the National Electromobility Strategy, new regulations to define the rules for the implementation of electric vehicles in line with the Energy Efficiency Law; the launch of the vehicle replacement program of high distance, as well as the implementation of the regulation in green hydrogen and support to promote the first green hydrogen projects in the country.
The loan has a repayment term of 16 years, a grace period of 5½ years, and an interest rate based on SOFR.
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Source: dpa
