The PV plant, to be developed by Total’s subsidiary SunPower, will be located in the region of Atacama.
Etrion, Total and Solventus will control 70%, 20% and 10% of the project, respectively.
The $200m project will be 70% financed through non-recourse project debt from the Overseas Private Investment Corporation.
The remaining 30% will be funded by Etrion, Total and Solventus based on their ownership interests.
Total marketing & services and new energies president Philippe Boisseau said that the company is proud to launch with its partners the largest solar merchant project in the world, and it is pleased to assist Chile in the diversification of its energy mix.
"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," Boisseau added.
"Solar power is a compelling proposition in Chile due to the amount of solar irradiation received every day in the region. Combined with Chile’s high electricity prices, large energy demand and low construction costs, solar can compete with traditional sources of electricity in Chile without government subsidies."
Construction is expected to start in the fourth quarter of 2013 and operations in first quarter of 2015 with annual output of 200GWh.
Etrion CEO Marco A. Northland said Project Salvador will demonstrate that solar is a viable and sustainable power solution in Chile given the strong solar irradiation and high electricity prices in the region.
"This project diversifies our portfolio in terms of geography and contract regime, demonstrates our ability to compete with traditional sources of electricity in a non-subsidy environment and provides a clear platform for growth that will give Etrion the option to declare dividends in the future," Northland added.
