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UTE Wind Farm Juan Pablo Terra

Sector: Commercial • Location: Uruguay

Source: KFW Bank aus Verantwortung

Project
Completed

The Federal Development Fund (FöK) in the amount of EUR 60 million to the Administración Nacional de Usinas y Trasmisiones Eléctricas (UTE) will be used to finance the first major wind farm of this state-owned Uruguayan energy supplier. It is being built in the north of the country, in the Artigas region. The Juan Pablo Terra wind farm, with a total capacity of 67 MW for feeding into the national

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The project “UTE Wind Farm Juan Pablo Terra” is an infrastructure initiative in the Commercial sector, located in Uruguay. Taiyo aggregates data on it from KFW Bank aus Verantwortung.

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Description

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The Federal Development Fund (FöK) in the amount of EUR 60 million to the Administración Nacional de Usinas y Trasmisiones Eléctricas (UTE) will be used to finance the first major wind farm of this state-owned Uruguayan energy supplier. It is being built in the north of the country, in the Artigas region. The Juan Pablo Terra wind farm, with a total capacity of 67 MW for feeding into the national interconnected grid, represents an important building block for the desired expansion of renewable energies as part of Uruguay's energy transition. Uruguay is faced with the challenge of meeting its constantly increasing demand for electricity as part of its economic growth. The country currently has a high proportion of hydropower, but the expansion options have been exhausted. In addition, there are frequent periods of drought. 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 However, the latter are largely outdated and inefficient and therefore have high costs as well as environmental and climate impacts.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 capacities. As part of the implementation of the Uruguayan Energy Strategy 2008-2030, at least 90% of electricity is to be generated from renewable energies by the end of 2015 (Uruguayan energy transition; average value 2009-2012 64%). The aim of the project is to ensure an independent and sustainable energy supply by promoting the expansion of wind energy in Uruguay. The project is therefore intended to contribute to the overarching development policy goal of global climate protection. The following project effects contribute to achieving the goal of the FC measure: Firstly, the construction of the Juan Pablo Terra wind farm will reduce Uruguay's dependence on electricity and fuel imports by increasing the share of renewable energies in the country's energy mix. Secondly, by promoting wind energy in the country, the development of electricity prices becomes easier to control, which benefits the population and the economy. And thirdly, wind power promotes an environmentally and climate-friendly technology in Uruguay.

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