The Inter-American Development Bank (IDB), contracted K&M, GeothermEx, and POWER Engineers to assess new approaches and develop business models for medium/high-enthalpy geothermal energy for electricity, green hydrogen, and industrial application in Chile.

To accomplish this, the team will (i) formulate a conceptual model for an exploration risk-mitigation mechanism, suitable for promoting geothermal use in district heating, industrial applications, and/or electricity generation, (ii) develop a business model for medium/high enthalpy district heating/cooling systems, (iii) design of a contractual and market strategy for increasing the competitiveness of geothermal power generation, (iv) develop a business model for the production of green hydrogen using geothermal energy, (v) a business model for the application of geothermal heat into an energy intensive industrial activity.

Cerro Dominador Solar Power Plant is a 210-megawatt (MW) combined concentrated solar power (CSP) and PV plant located in the Antofagasta Region of Chile, about 24 kilometers (15 mi) west-northwest of Sierra Gorda. The 100 MW PV plant is already in operation and the 110 MW CSP plant is in commissioning. The CSP plant includes a 243 m receiver tower, 10,600 heliostats, molten salt energy stage to support plant operation at 100% load for approximately 17 hours, steam turbine-generator, and other auxiliary equipment. A private investment client is planning on investing in the project and engaged K&M to perform project technical and market due-diligence review with the major focus on a 110 MW CSP power generation facility.

K&M served as the commercial and technical advisor to a private equity group considering the acquisition of a 25 MW single-axis tracking solar photovoltaic facility in Chile. The project was under construction. K&M was responsible for assessing all technical, engineering, commercial, financial, managerial, operational and environmental issues. Extensive review was performed on key project documents, including the Power Purchase Agreements, solar resource studies, EPC agreement, O&M agreement, financing documents and other applicable agreements required for operation. In addition, K&M reviewed the financial model to assist the client with identifying and evaluating project risks and determining risk mitigation strategies.

K&M served as a commercial and technical consultant to a private equity group considering the pre-construction acquisition of a 50 MW photovoltaic, fixed-mount solar facility in Chile. K&M was responsible for assessing the technical, engineering, commercial, financial, managerial, operational and environmental issues associated with the project. The project included evaluations of the system design, construction, rack assembly and site conditions in terms of location and solar energy resources, access, and constructability. K&M managed the development of a technical feasibility study for the facility’s grid interconnection, which included estimating construction costs, transmission losses, and transmission charges. K&M performed a long-term revenue forecast of the facility operating as a merchant plant selling energy to the spot market. The market forecast considered multiple potential generation expansions—one based on coal-fired generation and another based on natural gas (LNG). K&M also reviewed Chile’s new renewable energy law and the latest information regarding the development of renewable energy projects in Chile. K&M reviewed key project documents, including solar resource studies, EPC market pricing and terms, O&M price benchmarking and other applicable agreements required for operation. In addition, K&M reviewed the financial model to assist the client in identifying and evaluating project risks and determining appropriate risk mitigation strategies.

K&M served as the commercial and technical consultant to a private equity group considering the pre-construction acquisition of a 50 MW single-axis tracking solar photovoltaic facility in Chile. K&M evaluated the technical, engineering, commercial, financial, managerial, operational and environmental issues associated with the facility’s planned construction and operations. K&M reviewed key project documents and relevant development studies, including solar resource studies, the EPC agreement, and O&M agreements. In addition, K&M reviewed the financial model, verified model inputs, and assisted with identifying and evaluating project risks and developing risk mitigation strategies.

K&M served as the commercial and technical advisor to a private equity group considering a joint venture participation in the pre-construction acquisition of a 50 MW single-axis tracking solar photovoltaic facility in Chile. K&M was responsible for performing all technical, commercial, financial, and environmental due diligence of the project. K&M’s due diligence included in-depth reviews of the EPC agreement, O&M agreements, and solar resource studies. K&M also assessed the potential market for power purchase agreements (PPAs) as an alternative to the facility’s merchant operations. The analysis included a review of a long-term revenue forecast including energy sales to the spot market. The market forecast considered an expansion based on coal generation and another based on natural gas (LNG based). In addition, K&M reviewed the financial model to assist the client with identifying and evaluating project risks and determining appropriate risk mitigation strategies.

K&M served as the commercial and technical advisor to a private equity group considering the acquisition of a 35 MW dual-fuel (natural gas and diesel) power station in Chile. K&M developed a long-term revenue forecast, which included the plant’s energy sales to the spot market. K&M also developed a market forecast based on potential coal and liquefied natural gas (LNG) expansions. K&M was responsible for assessing the technical, commercial, financial, and environmental aspects of the plant. K&M reviewed key project documents and assessed possible natural gas availability and contracting. K&M also benchmarked O&M prices. In addition, K&M reviewed the financial model, identified and evaluating project risks, and assisted the client with developing appropriate risk mitigation strategies.

K&M was engaged by EIG Partners to provide technical and commercial due diligence services for EIG’s proposed investment in a 100 MW solar PV project north of Santiago, Chile. The project is designed to connect to a private transmission line to provide an optimal interconnection and low risk in Chile’s nodal pricing system. K&M reviewed all major project agreements (EPC, PPA, and others) and analyzed supply, demand, and spot prices the Chilean electricity market. K&M also evaluated the site’s solar resource assessments, the proposed PV panel technology, and the project’s expected power generation profile.

K&M was engaged by EIG Partners to provide technical and commercial due diligence services for EIG’s proposed investment in a 600 MW LNG to Power project in Chile. The project consists of a Floating Storage and Regasification Unit (FSRU), onshore gas receiving terminal, and a 600 MW combined cycle power plant using advanced Siemens “H” series gas turbines. The project would supply gas to the power plant and to industrial and other off-takers connected to the gas pipeline network. K&M advised EIG on all aspects of the project, including its technical design and feasibility, commercial structure, economic competitiveness, and its construction and operational risks. K&M’s due diligence includes a review of all major project agreements (EPC, PPAs, Gas Purchase Agreement, FSRU Lease, and others) and an analysis of the Chilean electricity market. K&M also supported EIG by providing inputs to the project financial model as needed.

K&M has been engaged a European-based private equity firm to analyze renewable (and possibly gas) energy investment opportunities in six Latin American countries. For the first phase of the engagement, K&M analyzed each country’s energy sector in terms of market fundamentals, market design and regulation, access to PPAs, risk, level of competition, and return dynamics, and then evaluated each market based on the client’s investment criteria. K&M then presented its market conclusions and recommendations to the client. For the second part of the engagement, K&M performed a deeper-dive assessment of the two countries with the highest investment potential for the client and designed potential entry strategies. This phase also included identification of particular project investment opportunities consistent with the client’s criteria. The conclusions were presented to the client.

K&M was contracted to provide the consulting services for strategic advisory support for the development of low and high enthalpy geothermal projects in selected countries in Latin America. The consultancy will provide strategic advice regarding barriers to the development of GE and provide recommendations to reduce or dismantle these barriers. As part of this assignment, K&M will conduct analyses and provide strategic advice and recommendations for four out of the following nine countries in Latin America with untapped geothermal potential: Argentina, Bolivia, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Nicaragua, and Peru. The four countries will be selected by the Inter-American Development Bank (IDB) during the execution of the consultancy.