With the support from the Inter-American Development Bank (IDB), Uruguay is planning to expand its wind power generation through the construction of two wind farms: Libertador and Palmatir. Loans totaling $107.7 million will help the country diversify its energy mix and reduce its dependence on hydroelectric generation, which during dry seasons, increases the country’s dependence on energy produced from fossil fuels.
“These projects will be the first two wind farms to be financed by the IDB that are developed within the program launched by UTE, the state-owned electricity company, to promote private sector participation in the renewable energy sector,’’ said Jean-Marc Aboussouan, Chief of the Infrastructure Division at the Structured and Corporate Finance Department, the IDB unit responsible for large-scale private sector project financing.
Aboussouan continued, “The long-term financing provided by the IDB will allow Uruguay to take advantage of the global advances in the wind energy sector as well as improvements in technology and cost reductions that have made wind power a competitive energy source.”
WPE, a fully-owned subsidiary of Brazilian-based IMPSA, will develop the El Libertador wind farm that will feature 44 Vensys IMPSA wind turbines and be located in the department of Lavalleja. The project will receive a $66 million IDB loan. Abengoa S.A. will develop the Palmatir wind farm that will be located in the department of Tacuarembó. This wind farm will feature 25 Gamesa wind turbines and receive a $41.7 million IBD loan.
When the two wind farms are completed, they will have the capacity to produce 115 MW of electricity. Today, Uruguay has 2.578 MW of power generation capacity, of which approximately 60 percent provides from hydropower plants, 33 percent from fossil fuels and the remaining from biomass and wind energy.