Private sector projects to reduce carbon footprint and mitigate climate change
The Inter-American Investment Corporation (IIC) signed two financing packages with Solaria Energía y Medio Ambiente S.A. for the construction, operation and maintenance of two solar photovoltaic energy plants in Uruguay. The ceremony took place in Montevideo with IIC CEO James P. Scriven and Solaria Energía Dario Lopez. Financing included $12.2 million and $12.8 million for the Natelu and Yarnel wind farms, respectively.
The projects will jointly generate approximately 35.8 GWh of electricity annually from non-conventional renewable energy sources, displace about 19,500 tons of CO2 equivalent emissions per year and reduce the vulnerability of Uruguay’s electricity sector to hydrological conditions. By supporting two, small-power generation companies’ market entry, the IIC is supporting the diversification of the country’s energy matrix and increasing private sector participation.
The Natelu wind farm includes an IIC senior loan of $6.1. million plus a $6.1 million co-loan from the Canadian Climate Fund for the Private Sector in the Americas (C2F), a $250 million fund that co-finances climate-friendly private sector projects in the region. The Yarnel farm will receive $6.4 million from IIC’s capital and $6.4 million from the C2F.
The loan offers an 18-year tenor to make the project viable and competitive. The IIC has contributed to systemic change in Uruguay’s energy sector by providing long-term financing, mobilizing capital from investors and working with the government to increase the private sector´s involvement.
About the Inter-American Investment Corporation
The Inter-American Investment Corporation (IIC), a member of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting the private sector in Latin America and the Caribbean. The IIC finances sustainable enterprises and projects to achieve financial results that maximize social and environmental development for the region. With a current portfolio of $7 billion under management and 330 clients in 20 countries, the IIC works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients.
About Solaria Energía y Medio Ambiente
Solaria Energía y Medio Ambiente S.A (“Solaria”) develops, executes and operates PV power plants worldwide. The company was founded in 2002 and its shares are traded on the Spanish Stock Exchange since 2007. Solaria has participated in the entire value chain of the photovoltaic activity, where it has evolved its business model from the manufacture of photovoltaic cells and modules, with more than 300 MWp supplied, towards the execution of projects, with more than 150 MWp successfully developed in Europe and Latin America, becoming thus an integrated operator and a prominent actor in the photovoltaic sector. This strong technical record provides a unique positioning to act as PV power investment vehicle worldwide, holding a portfolio of PV power generation assets above 70 MWp in Europe and Latin America.
- José Luis Lobera
Project Team Leader