Argentine wind farm secures EKF backing
KfW Ipex-Bank is financing seven wind turbines for Parque Eólico del Sur, a subsidiary of US company Pan American Energy, and its partner 3 GAL.
Danish export credit agency EKF is covering 95% of the US$21.8mn loan, which enables the client to purchase the turbines, and covers the local costs of connecting them to the national grid.
Wind turbine manufacturer Vestas will build the installations in the town of Florentino Ameghino in Argentina’s Chubut province.
The wind farm is part of Argentina’s ambitious RenovAr programme, which plans to grow renewables to 20% of the national energy matrix by 2025. The current figure sits at 2%.
Under the programme, the Argentinean government awards long-term contracts for the generation of power using renewable energies.
In July 2016, during the programme’s first round of bidding, Parque Eólico del Sur entered into a long-term power purchase agreement with Compañía Administradora del Mercado Mayorista Eléctrico.
Earlier this year the World Bank approved a 20-year US$480mn for the country’s renewable energy plan.
The World Bank is supporting the Fund for the Development of Renewable Energies (FODER), which was created to facilitate the financing of projects under the RenovAr programme. Related technologies include wind, solar, biomass, biogas and small hydroelectric.take me back