Solar power Chile: Earlier this week, TOTAL S.A. (ADR) (NYSE:TOT), Etrion SA (TSE:ETX) and Solventus Energias Renovables announced in Geneva, Switzerland, that they will begin to build the world’s largest merchant solar plant in Chile. The companies will participate in the project with 70%, 20% and 10% respectively. This solar plant, called “Projecto Salvador”, will cost US$ 200 million and be financed by funds of Overseas Private Investment Corporation.
As an affiliate of Total, SunPower Corporation (NASDAQ:SPWR) will take part in this megaproject at the Atacama Desert in Chile, building and operating a 70 MGp solar power plant. Projecto Salvador pretends to be a milestone in solar energy production in the nearest future, offering a clean and reliable solution to support electricity demands in different regions across the world.
According to Philippe Boisseau, Total’s Executive Committee member, “Project Salvador is an important step in the process of transforming the capabilities of solar power in the world. This merchant project confirms that solar energy is becoming competitive with other conventional energy sources.”
SunPower will participate directly in the project installing their “Sun Power Oasis Power Blocks system”, a kind of photovoltaic technology. It will use solar panels and single-axis tracker technology developed by the company, which has already proved its efficiency at other projects.
With the construction of this solar power plant, the Total S.A conglomerate, through its subsidiary SunPower, shows that is engaged with non-conventional solutions to improve energy production. At the same time, the firm demonstrates its capability of getting involved in megaprojects worldwide. This could increase revenues for the company and consolidate the price of SunPower’s stock in the nearest future. If we consider official information from SunPower’s website, activities at Projecto Salvador will begin in early 2014 and are expected to be finished in late 2015. This record-time construction could set industry standards for similar projects around the world in the years to come.
Disclosure: Saul Rodriguez holds no position in any of the mentioned stocks.