Uruguay’s renewable energy sector has received a major boost with two wind energy projects bagging substantial financial support.
The Inter-American Development Bank (IDB) has announced substantial financial support in form of loans to two wind energy projects in Uruguay. The projects will have a generation capacity of 70 MW each. The Colonia Arias wind farm and the Valentines wind farm will each receive a loan worth $72 million from IDB.
The two projects shall also receive an additional $36 million each from the China Co-financing Fund for Latin America and the Caribbean, bringing the total financial support to $216 million. Local media reports suggest that some capital may also be raised through Initial Public Offering from companies created specifically for the construction of these two projects.
When commissioned, the projects will generate a cumulative 615 GWh worth of electricity, offsetting over 366,000 tonnes of CO2e emissions. The electricity will be sold to a government entity through a long-term power purchase agreement.
Uruguay has set a target to source 90% of its total electricity needs from renewable energy sources by the end of this year. The country seems well on track to achieve this target, considering that last year, the country’s national energy director announced that 84% of the electricity consumed was sourced from renewable energy sources.
Image Credit: Alex Proimos | CC-BY 2.0