SANTIAGO, Chile 9/14/11 (PennWell) -- A unit of the Inter-American Development Bank (IADB) has agreed to invest up to US$5 million in renewable energy in Chile, including up to eight small hydropower projects.
IADB's Multilateral Investment Fund (MIF) will provide the equity investment to the Chilean Renovarum Renewable Energy Fund, a program 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. is to invest in up to eight small hydropower projects totaling 160 MW.
The program is to pave the way for the fund to make direct investments in clean energy, contribute to build local management capabilities, and demonstrate the financial viability of the new development model for the local venture capital industry.
"The fund will help leverage private capital in support of the Chilean government's priority of increasing power generation capacity from non-conventional renewable sources," project team co-leader Susana Garcia-Robles said.