The Inter-American Development Bank (IDB) and the China Co-financing Fund for Latin America and the Caribbean have announced financial support in the form of loans for 2 wind farms in Uruguay. Both the Colonia Arias and the Valentines wind farm will received loans worth $72 million each from IDB and $36 million each from China Fund. The total funding amount is roughly $216 million for both wind farms.
Even though the projects have been heavily supported by two funds, an Initial Public Offering might take place in order to raise additional money for construction and to allow local investors to participate in the renewable market.
Chief of the Bank’s Infrastructure Division, Jean-Marc Aboussouan said, “These two projects are in line with Uruguay’s efforts to significantly increase the proportion of renewable energy within its overall energy matrix, and at the same time they use the innovative element of offering Uruguayan investors a mechanism for participating through the Initial Public Offering.”
Surprisingly, Uruguay has a target of reaching 90% of its electricity demands through renewables by the end of 2015. Currently, the country has met 84% of its power needs. These Uruguay wind farms in particular will provide a combined output of roughly 615 GWh when they become operational; enough to offset 366,000 tonnes of CO2 emissions and power 200,000 homes.