Solar PV Project in Uruguay Secure $85 Million in International Funding

An ambitious 82 MW solar PV (photovoltaic) project consisting of six solar energy plants has secured a total of $85 million in funding from a diverse group international development funding agencies.

The project is  sponsored by global solar developer  Sky Solar Holdings and local Uruguayan company Lafemir S.A., and  consists of solar plants located in the departments of Paysandú, Salto and Río Negro in western Uruguay.

The Inter-American Development Bank (IDB) has approved a $55.7 million loan to finance the construction, operation and maintenance of six solar PV plants and their related facilities.  The China Co-Financing Fund and the Canadian Climate Fund for the Private Sector, both of which are  administered by IDB, will also provide loans of $19.3 million and $10 million, respectively for a total of $85 million in financing.

The Project will supply an average of 125.4 GWh of electricity per year to the national grid, eliminating approximately 74,000 tons of CO2 emissions per year.  The solar PV plants will help to diversify Uruguay’s energy matrix and boost the local economy by providing business to local companies such as Lafemir.

“Through this Project, the IDB continues supporting Uruguay in furthering its non-traditional renewable energy capacity, while also promoting use of locally manufactured equipment, professional capacitation and the implementation of a climate change educational initiative,” said Jean-Marc Aboussouan, Infrastructure Division Chief at the Structured and Corporate Financing Department, the IDB unit tasked with financing large-scale private sector projects.

Mr. Weili Su, Chairman and Chief Executive Officer of Sky Solar, commented, “We are very pleased to have secured financing from the IDB and its affiliated funds for this major project in Uruguay as we continue to expand our operations and pipeline in the Latin America region. Additionally, we continue to make progress on the 9.5 MW (8 MW AC) already under construction in Uruguay and also remain on track to break ground on one of the largest solar projects in Chile during the third quarter of 2015. Meanwhile, we continue to see significant growth potential in the region, and expect more opportunities beyond our 639 MW pipeline in Latin America. Our focus remains on projects with high returns while securing low cost of capital as we continue to explore new opportunities and expand our pipeline in the region.”

Tracey Smith About Tracey Smith
Tracey is an accountant and entrepreneur with a passion for nature. This passion is what spurred her interest in renewable energy, and the rest is history as they say. Tracey is a principal in Energy Think Group, the publisher of Solar Thermal Magazine and Tek-Think. She is also the principal at Women's Financial Help Desk. She spends her free time in the outdoors with her horses and dogs. She loves to travel.

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