The Inter-American Development Bank (IDB) has approved a 40.9 million dollars loan from its ordinary capital and 25 million from the Canada Climate Fund, which is administered by the Bank, to finance the private sector in Uruguay in the construction, operation and maintenance of a photovoltaic solar energy plant and its related facilities.
With a total installed capacity of 64.8MW, the plant will be part of the La Jacinta Solar Energy Project located five kilometers south of Salto in northwest Uruguay. It will supply on average 96 GWh of electricity per year to the national grid, allowing for an easing of Uruguay’s dependence on energy from fossil fuels.
“This marks another step forward for the country in the introduction of non-traditional renewable energy in the energy network,” said Jean-Marc Aboussouan, head of infrastructure at the Structured and Corporate Financing Department, the IDB unit tasked with financing large-scale private sector projects.
“It also shows that solar energy, like wind power, can be competitive and viable in financial terms in the region.”
The main benefits expected from the project include a 64.8MW increase in installed capacity in non-conventional renewable energy. This will support Uruguay’s strategy of diversifying its energy network, eliminate approximately 18,000 tons per year in carbon emissions and boost the private sector’s role in the energy sector. Furthermore, it will encourage competition by bringing a new operator into the market and a new technology into the sector.
The Structured and Corporate Financing Department (SCF) leads all IDB non-sovereign guaranteed operations for large-scale projects, companies and financial institutions in Latin America and the Caribbean. The department serves as a catalyst, helping to mobilize third-party resources by partnering with commercial banks, institutional investors, co-guarantors and other co-financing entities in high-impact development projects.