IDB finances Valentines and Colonia Arias wind farms in Uruguay

The Inter-American Development Bank (IDB) continues to support the expansion of renewable energy in Uruguay through two financial packages, totaling $216 million, which were approved for the private sector to finance part of the construction of the Colonia Arias 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 Cofinancing 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 Cofinancing Fund.

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.