IDB to finance wind project in Uruguay

The Inter-American Development Bank (IDB) has approved a loan of up to US$42.2 million to finance the development, construction, operation and maintenance of a 48.6 MW Kiyú wind farm in Uruguay.

The new wind farm will be located in Paraje Barrancas de San Gregorio, in the department of San José, and will generate approximately 187,900 MWh of renewable energy per year. The farm will be developed by Cobra Ingeniería Uruguay SA, subsidiaria of Spain's Grupo Cobra.

Vestas will provide 16 V112-3.0 MW turbines for the project. The project also includes the development of a substation and a 150kV transmission line to inject the energy produced to the grid.

The total project investment is estimated at US$116 million.

Jean-Marc Aboussouan, Chief of the Infrastructure Division of the Structured and Corporate Finance Department at the IDB stated:

The bank continues to support the wind power sector in Uruguay as we have from the outset, with the financing of several projects that have helped the sector post considerable growth in the past few years.

Currently, roughly 45% of Uruguay's installed capacity corresponds to hydroelectric power, 38% to thermoelectric plants and the remaining 17% to renewable energy (12% to energy from biomass, 5% to wind power and a small fraction to solar power).

By 2017 Uruguay is forecast to reach an installed capacity of 30 percent in non-conventional renewable energy sources. That could substantially change its energy mix, offering environmental advantages and reducing electrical utility rates for final consumers.