IDB loans to support wind energy projects in Peru
Inter-American Development Bank has approved loans for Marcona and Tres Hermanas wind farm projects in Peru that will add of 132 MW to national grid
The Inter-American Development Bank (IDB) has approved loans totalling US$67.3 million for two wind farm projects in Peru.
The Marcona and Tres Hermanas projects are in the department of Nazca, south of Lima, and will receive US$23.2 million and US$44.1 million respectively.
The two farms will add total of 132 MW of renewable capacity to national grid.
The loans will provide long-term financing for two of the first commercial-scale wind power projects in Peru, leading to the displacement of an estimated 440,000 tonnes of CO2 emissions annually.
The energy generated by the two projects is expected to produce a supply equivalent to meet the power requirements of an estimated 500,000 Peruvian consumers.
Construction on the Marcona farm and associated facilities was completed in March of this year.
Work on the Tres Hermanas site began in July and is expected to be completed in September 2015.
Jean-Marc Aboussouan, chief of the Infrastructure Division in the Bank’s Structured and Corporate Finance Department, said: “The IDB’s financing of these two projects will send a strong signal to potential investors in Peru’s wind market. Wind offers a complement to thermal and hydroelectric sources, which today account for 97 percent of the country’s energy matrix, and will serve as a seasonal complement to hydro in particular.”
IDB support for the two farms is also expected to include subordinated debt funding from the Canadian Climate Fund for the Private Sector (“C2F”), which will play a critical role in optiminsing the capital structure of the project.
