Uruguay to diversify energy matrix with IIC loans to solar PV plants
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.