Loan worth US$216 Mn Received by Uruguay for Wind Power Projects

Published By : 26 May 2015 | Published By : QYRESEARCH

Uruguay has announced a target to source around 90 per cent of their total electricity needs from the renewable sources by end of 2015. At present, the country is on track to achieve their target, especially considering that the country’s national Energy Director declared that the 84 per cent of electricy consumed was from renewables.

The renewable energy sector in Uruguay has gained a massive boost with around two wind energy projects gaining substantial monetary support. According to IDB (Inter-American Development Bank), the substantial financial support is in form of loans for two wind power projects in the country.

These two projects in wind energy are expected to have a power generation capacity of 70 MW each. Furthermore, the Colonia Aria farm along with the Valentines farm are set to receive a loan which is worth US$72 million from the Inter American Development Bank.

The two wind energy projects will also receive an extra funding worth US$36 million each from the China Co-financing Fund for Latin America and the Caribbean. This makes the overall financial support for these projects to be around US$216 million.

The local media suggest that the some of the capital received will also help to add the funding via the Initial Public Offering from firms which are created especially for the construction of these two wind energy projects.

After the commission, these two projects are expected to produce 615 giga watts of cumulative electricity and offset around 366,000 tons of carbon dioxide emissions. The electricity generated from these two projects is planned to be sold to a government organization via a long term power purchase deal.
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