IDB Invest, the private sector arm of the Inter-American Development Bank (IDB) Group, has provided financing of $50 million for the construction and operation of the 125.2 MW Bicentenario wind farm, located in the province of Santa Cruz, in Argentina. This is part of a $108 million long-term financing package, which includes a $58 million tranche from KfW IPEX-Bank covered by EKF Denmark’s Export Credit Agency. The project is sponsored by Petroquímica Comodoro Rivadavia (PCR).
The operation will contribute to diversifying Argentina’s energy matrix and increasing the sustainability of the country´s energy generation capacity. It will displace the emission of 297,463 tons of CO2 equivalent per year over the 20-year lifespan of the plant.
The project, with long-term financing for up to 15 years, is comprised of Parque Eólico del Bicentenario I wind farm (PEBSA I – 100MW) and Parque Eólico del Bicentenario II wind farm (PEBSA II – 25.2MW).
PEBSA I wind farm is part of Argentina´s Renewable Energy Program (RenovAr) and holds a 20-year power purchase agreement (PPA) with the wholesale electric market administrator CAMMESA for a 100MW capacity. PEBSA II wind farm will supply energy to large and medium users through the private market.
The direct beneficiaries of the project are electricity consumers connected to the Argentine grid. Renewables have the potential to reduce the cost of power supply as they displace thermal–based generation, currently relying on imported fuel. The RenovAr Program has already shown a reduction in energy prices. In addition, the operation will increase private sector participation in the energy sector of the country.
About IDB Invest
IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting Latin America and Caribbean businesses. It finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a current portfolio of $11.2 billion under management and 330 clients in 23 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients. As of November 2017, IDB Invest is the trade name of the Inter-American Investment Corporation.
About Petroquímica Comodoro Rivadavia (PCR)
Petroquímica Comodoro Rivadavia (PCR) is an Argentine independent energy company with more than 95 years of experience in the exploration and production of oil and gas and the largest producer of cement in the Argentine Patagonia. PCR´s main activities consist of exploration and production of oil and gas fields (upstream) in the Neuquina basin in Argentina, the Oriental basin in Ecuador, and to a lesser extent, in the Valle Inferior de Magdalena basin in Colombia. In addition, it is the leading cement producer in the area comprised of the Argentine Provinces of Río Negro, Neuquén, Chubut, Santa Cruz and Tierra del Fuego (the “Argentine Patagonia”). In 2016, through its directly and indirectly wholly-owned subsidiaries, PCR expanded into the renewable energy business with a 325 MW pipeline of new energy projects in Argentina.