New CAF Co-funded Thermal Power Plant in Uruguay

UTE, the state-owned electricity company commissioned the “Punta del Tigre” Combined Cycle Thermal Power Plant in the department of San José, which was co-financed by CAF—development bank of Latin America—, the Inter-American Development Bank (IDB) and the KfW (German state-owned development bank). 

In 2012, UTE began the construction of the Combined Cycle Power Plant as an expansion of the “Punta del Tigre” Thermal Complex, and as backup power generation from renewable sources, for which Uruguay is globally renowned.

CAF’s funding covered the construction of the plant, which is set to increase autonomy in Uruguay’s power generation, reducing costs and expanding the share of renewable energy sources.

This is considered a strategic project as it helps drive the energy policy advanced by the government through the Ministry of Industry, Energy and Mining (MIEM). The $881-million investment was partly funded by CAF—development bank of Latin America—, with $180 million.

The plant will build up Uruguay’s generation capacity by 530 MW, in an effort to meet increasing demand in the country as a result of economic growth.