IDB to invest in new small hydro schemes in Chile

8 September 2011


The MIF is to provide equity investment of up to $5M in the Chilean Renovarum Renewable Energy Fund, a project that seeks to create a new development model for the local venture capital industry around low-carbon and climate-friendly technologies.

The fund, managed by Renovarum Investment Management S.A., will then invest in around eight small-scale hydro projects in the country, which as of 2010 had a total gross installed power capacity of 15.8GW.

“By supporting specialized venture capital funds and investment vehicles, the MIF plans to create an effective means of combining the energy and financial expertise needed to develop these deals at an early stage and help Chile address its climate and energy challenges,” said Patricio Diaz Lucarelli, co-team leader of the project.

The project will contribute to help Chile create new jobs and reduce its reliance on foreign fossil fuel imports and CO2e emissions, which can potentially be quantified as carbon credits under the Clean Development Mechanism (CDM) of the Kyoto Protocol. Ultimately, the fund’s impact will be higher contributions from investee companies to sustainable economic growth and greenhouse gas emission reductions.




Privacy Policy
We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.