AFRY analysis highlights how socio-environmental monitoring becomes key to attracting financing for solar projects
A review of 15 Chilean solar plants shows why ESG oversight now supports bankability.
AFRY evaluated 15 operational photovoltaic plants in Chile, demonstrating how environmental and social monitoring has become a vital tool for strengthening risk management and investor confidence in renewable energy projects.
Socio-environmental requirements reshape solar project bankability
Santiago, Chile – March 2026. Amidst the rapid growth of renewable generation, the Chilean energy industry faces new challenges linked not only to technical and regulatory aspects but also to increasingly demanding socio-environmental management. In this scenario, Environmental and Social Compliance Monitoring (ESCM) processes have taken on a more significant role in ensuring project sustainability and bankability.
In line with this trend, AFRY, an engineering, project management, and advisory services company, recently conducted socio-environmental monitoring for a portfolio of 15 operational solar PV plants in Chile. Belonging to Grupo KOLAT, these plants represent approximately 100 MWp of combined installed capacity, connected to various points of the national electric grid.
The objective of the study was to evaluate the level of environmental and social compliance during the operational phase of the projects, verify the implementation of commitments defined in previous due diligence processes, and analyze their alignment with international standards applicable to sustainable finance.
Socio-environmental monitoring is not just a regulatory obligation; it is a strategic tool that allows us to anticipate risks and continuously strengthen operations. At AFRY, we support our clients through this process with a technical yet practical perspective tailored to the reality of each project, thus contributing to a more responsible energy development,
says Constanza Bozzo, Project Manager at AFRY.
Alignment with global sustainable finance frameworks
The evaluation conducted by AFRY was developed under international frameworks such as the IFC Performance Standards (International Finance Corporation), the Equator Principles (EP4), and the World Bank EHS Guidelines, confirming the compatibility of the assessed plants with international sustainable financing.
Based on these results, KOLAT has continued its socio-environmental monitoring with AFRY for a second consecutive year, re-evaluating the same 15 PV plants. This process has enabled performance tracking, verification of progress, and reinforced alignment with international standards.
For KOLAT, having rigorous socio-environmental monitoring is essential to ensure the sustainability of our portfolio and the trust of our investors. The work carried out alongside AFRY allows us to move forward with greater solidity and transparency in the operation of our solar plants,
confirms Hansol Kim, Operations Manager (O&M) at KOLAT.
Beyond its technical dimension, this type of assessment is consolidating as a strategic tool for the energy industry. It strengthens socio-environmental management and anticipates operational risks, particularly in markets like Chile, where the expansion of renewable generation has driven portfolios integrating multiple small-scale projects, such as PMGDs (Small Means of Distributed Generation Projects), located across various regions of the country.
