Expanding Wind Power in Uruguay

Expanding Wind Power in Uruguay

Uruguay is largely dependent on hydropower – approximately 60 percent of its energy matrix. Yet, during each dry season, the country relies heavily on fossil fuels for power generation. This increases Uruguay’s carbon footprint and makes it vulnerable to oil price fluctuations.

The IDB provided technical support to the government of Uruguay to promote private sector participation in the renewable energy sector. More precisely, the IDB was instrumental in revising the regulatory framework to attract private developers to these projects.

As a result, the IDB provided two loans totaling $107.7 million to finance the Palmatir and El Libertador wind farms, operated by Abengoa and a subsidiary of IMPSA, respectively. These projects are part of a program launched by UTE, the state-owned electricity company, to promote renewable energy investments.


Once completed, the projects are expected to:

  • Generate 115 MW combined in wind power capacity
  • Reduce CO2 emissions by 302,000 metric tons each year
  • Contribute toward diversifying Uruguay’s energy matrix, which is dominated by hydropower (60%) and fossil fuels (33%)

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