The Inter-American Development Bank (IDB) continues to support the expansion of renewable energy in Uruguay through two financial packages, totaling 216 million dollars, which were approved for the private sector to finance part of the construction of the Colonia Airas and Valentines wind farms and their related works.
Each of the parks will have the capacity to generate 70 MW.
The financing approved by the IDB for the Colonia Arias wind farm, located in the department of Flores, includes a loan of up to $72 million from its ordinary capital and up to $36 million from the China Co-financing Fund for Latin America and the Caribbean, created by the Chinese government to co-finance projects in the region with the IDB.
The financing approved for the Valentines wind farm, located on the border between the departments of Florida and Treinta y Tres, also includes a loan of up to $72 million from the Bank's ordinary capital and up to $36 million from the China Co-financing Fund.
“These two projects are in line with Uruguay's efforts to significantly increase the proportion of renewable energy within its overall energy matrix, and at the same time they use the innovative element of offering Uruguayan investors a mechanism for participating through the Initial Public Offering,” said Jean-Marc Aboussouan, chief of the Bank’s Infrastructure Division.
Both projects will be carried out under the auspices of the Administración de Usinas y Transmisiones Eléctricas (UTE) and will sell to UTE all the power generated, under a long-term contract.
The loan for the construction of the Colonia Arias wind farm will be issued to a trust, the Fideicomiso Financiero Arias, and the loan for the Valentines wind farm will be issued to Areaflin S.A., both created specifically for these projects.
The raising of capital through an Initial Public Offering will introduce a new way of financing renewable energy projects in the country and is expected to increase the participation of Uruguayan investors in national renewable energy projects.
The two projects are expected to create a positive impact by generating a total of 614.5 GWh of renewable energy per year, contributing to the diversification of the energy matrix through a reduction of its dependence on fossil fuels, and reducing emissions by approximately 366,555 tons CO2 equivalent per year by replacing fossil fuels with renewable energy.
In addition, the energy needs of an estimated 200,000 or more individuals may be met with a renewable energy source that is lower in cost than those of other generation options available in Uruguay.
Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!
That's an awful lot of wind,May 13th, 2015 - 11:16 am 0
that's the trouble nowadays, there's far to much man made wind about, but no really useful energy..lol
The picture looks like the view you get from Ruta 12 Minas / Maldonado.May 13th, 2015 - 11:25 am 0
I was on that road on my grande moto two weeks a go, lovely day, only a slight wind and NOT ONE of these useless windmills was rotating, not one.
It was stated in the press that the contract with the manufacturer was on a cost per MW only, no power, no cost. Do I believe this? Not a chance.
No Money Pepe has been continually bamboozled by not so new technology and misled by the experts of UTE (the government monopoly electricity supplier) who seem to misunderstand everything that they tackle, even to the point of blackballing Mitsubishi Heavy Industries, the preferred supplier on the combined power and heat project (which seems to have died a death anyway) when the search they did related to a similar sounding name in China (instead of Japan).
But what can we expect of the MPP and The Broad Fraud parties? Another U$D 216 M wasted it seems.
Waste of money.May 13th, 2015 - 12:46 pm 0
In the end they won't work, be too expensive to maintain and Uruguay will still be paying the loan back.
What a shame.