The project will have 23 wind turbines with an installed capacity of 46MW, and is in the application process for carbon credits for the offset of 65,000 tonnes of CO2 per year. Norvind is owned 80% by SN Power and 20% by Chile-based Centinela. The project is located in the Canela district of Coquimbo.

The potential for having the project registered under the Kyoto Protocol’s Clean Development Mechanism to generate carbon credits is an important factor behind SN Power’s investment decision.

Nils Huseby, executive vice president for SN Power Latin America, said: This is SN Power’s first investment in wind power, and a strategically important project for us. In today’s Chilean market, the frame conditions for wind power investments are such that projects are marginally viable. This shows the importance of the Clean Development Mechanism in attracting investments into renewable energy in emerging markets.