The Inter-American Development Bank (IADB) has approved a US$55.7 million loan to Sky Solar Holdings, Ltd. to finance the construction, operation and maintenance of six photovoltaic solar energy plants in Uruguay.
Led by the IDB, The China Co-Financing Fund and the Canadian Climate Fund for the Private Sector, both administered by IADB, will also provide additional loans of US$19.3 million and $10 million, respectively.
The project, sponsored by Sky Solar and local company Lafemir S.A., consists of solar plants located in the departments of Paysandu, Salto and Rio Negro in western Uruguay. With a total installed capacity of 82 MW, the project will supply an average of 125.4 GWh of electricity per year to the national grid, helping to diversify Uruguay's energy matrix and eliminating approximately 74,000 tons of CO2 emissions per year.
The photovoltaic panels will be mounted over fixed steel structures and are expected to be provided locally by a joint venture between Lafemir and an industry-leading manufacturer.
Jean-Marc Aboussouan, IADB's Infrastructure Division Chief at the Structured and Corporate Financing Department, stated:
"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."
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."