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IDB finances private-sector solar energy project in Uruguay

Casablanca and Giacote photovoltaic plants will be located in the departments of Paysandú, Salto and Río Negro, with installed capacity of 69.9MW

The Inter-American Development Bank (IDB) has approved a $55.7 million loan from its ordinary capital to finance the construction, operation and maintenance of six photovoltaic solar energy plants and their related facilities in Uruguay. The China Co-Financing Fund and the Canadian Climate Fund for the Private Sector, both administered by the Bank, will provide additional loans of $19.3 million and $10 million, respectively.

The Project, sponsored by Sky Solar Holdings Ltd and a local solar developer Lafemir S.A, consists of solar plants located in the departments of Paysandú, Salto and Río Negro in northwestern Uruguay. With a total installed capacity of 69.9MW the project will supply an average of 125.4 GWh of electricity per year to the national grid, helping to diversify Uruguay’s energy matrix and eliminating approximately 74,000 tons per year of CO2 emissions. The photovoltaic panels will be mounted over fixed steel structures expected to be provided locally through a joint venture between Lafemir S.A. and an industry-leading manufacturer.

Additionally, Bank resources will support the implementation of a climate change education initiative that will encourage young people to use their creativity and energy to come up with feasible, sustainable, long-term strategies to mitigate climate change. The “Rise Up” initiative will start in three rural primary schools in the department of Paysandú.

“Through this Project the IDB continues supporting Uruguay in furthering its non-traditional renewable energy capacity, while also promoting use of locally manufactured equipment, professional capacitation and the implementation of a climate change educational initiative,” said Jean-Marc Aboussouan, Infrastructure Division Chief at the Structured and Corporate Financing Department, the IDB unit tasked with financing large-scale private sector projects.

About the IDB

The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source oflong-term financing for economic, social and institutional development in Latin America and the Caribbean.The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.

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