Co-financing of the combined cycle power plant "Punta del Tigre B"

completed

The FC loan of USD 70 million to the state-owned Uruguayan energy supplier Administración Nacional de Usinas y Trasmisiones Eléctricas (UTE) is used to co-finance the construction of the Punta del Tigre B gas-fired combined-cycle power plant with a capacity of 532 MW, together with the Inter-American Development Bank IDB and the Latin American Development Bank CAF. Uruguay is facing the challenge of meeting its constantly increasing demand for electricity as it grows economically. The country currently has a high proportion of hydropower, but the expansion options for this have been exhausted. In addition, droughts are frequent. During these times of low hydropower production, the small country is increasingly dependent on expensive electricity imports from its neighboring countries Argentina and Brazil, as well as on its existing thermal energy generation capacities. However, the latter are largely outdated and inefficient and therefore have high costs as well as environmental and climate impacts. In order to diversify its energy supply and make it even more environmentally and climate-friendly, the country has begun a major expansion of its wind energy capacity. This is increasing the need for efficient backup capacity to compensate for weather-related load fluctuations in renewable energies. This backup capacity will be made available in the future by the new gas-fired combined cycle power plant. The aim of the project is to increase the security of supply and stability of the Uruguayan energy supply system and to ensure this in a sustainable manner. The project is therefore intended to contribute to the overarching development policy goal of sustainable economic growth in Uruguay.