Strengthen the region’s energy security.
The IDB is providing non-sovereign guaranteed financing to expand the use of renewable energy in Latin America and the Caribbean. Recent examples include projects in Peru, Brazil, Chile, Costa Rica, Mexico and Uruguay among others. As well, the IDB is mobilizing funds to support the development of renewable energy and climate-friendly private sector investments in the region.

Activities:
1. Canadian Fund for the private Sector in the Americas: Canada has committed US$250 million to create the Canadian Climate Fund for the Private Sector in the Americas which is managed by the IDB. The fund finances private sector climate mitigation and adaptation projects in the region that need some concessional financing to become financially attractive to the private sector. It aims to mobilize private sector investment in cleaner technologies, which often have higher initial costs and longer pay-backs than fossil fuel technology. Over the fund’s 25-year life it is expected to contribute to a reduction of up to 50 million metric tons of greenhouse gas emissions. The fund will make up to half of its capital available for loans and guarantees in local currency. 2. Isolux (Peru and Brazil): A non-sovereign guaranteed loan is supporting projects in Peru and Brazil to expand renewable energy and energy infrastructure. The corporate loan will finance the new Majes and Repartición Peruvian solar plants, with a total 40MW of installed capacity, which are the first large-scale solar installations in Latin America reducing 40,000 tons of CO2 emissions annually while creating 260 construction jobs. As well, it supports the new 500 kV Taubate-Nova Iguaçu transmission line between the states of São Paulo and Rio de Janeiro. 3. Alto Maipo Hydroelectric Power Project (Chile): The project consists of the construction of two run-of-the-river hydroelectric facilities designed to provide base load electricity to the Chilean electricity grid. Ninety percent of the project's infrastructure, including the power houses and 67 km of tunnels, will be located underground. Once operational, the project will contribute an annual average of 2,300 GWh to the Chilean grid. 4. Pozo Almonte and Calama Solar Photovoltaic Power Project (Chile): A non-sovereign guaranteed loan is financing the construction, operation, and maintenance of three photovoltaic solar power plants in the Atacama Desert in northern Chile. The financing consists of a loan for $20.7 million from the IDB’s ordinary capital and a loan for $20.7 million from the Canadian Climate Fund for the Private Sector in the Americas. The project’s major benefits will be to help develop local energy sources to diversify Chile's energy matrix and replace fossil fuels with a renewable energy resource for power generation for the mining industry, reduce CO2 emissions by 56,000 tons annually and support Chile’s National Energy Strategy. 5. Wind Projects in Uruguay: The Palmatir Wind Project, will diversify Uruguay’s energy matrix and reduce its dependence on hydroelectric generation which, during the dry season, forces the country to boost electricity generation from fossil fuels. This project is the first, IDB-financed wind farm within the program launched by UTE, the state-owned electricity company. The IDB is also financing the Carapé I and II wind farms in Uruguay that consist of a wind farm divided into two subprojects of 50 MW and 40 MW, respectively. These projects are expected to avoid the emission of about 561,000 metric tons of carbon dioxide a year. 6. Reventazon Hidroelectric Power Project (Costa Rica): Construction of a 305.5 MW hydropower plant in the Limon Province in Costa Rica is Central America’s biggest renewable energy project. The IDB non-sovereign guaranteed loan will help finance the design, construction, operation and maintenance of the plant and its associated facilities, including transmission lines, substations and access roads. The plant will use waters from the Reventazón River to generate an average of 1,407 gigawatt-hour (GWh) of electricity per year. Once completed, the plant will represent approximately 10 percent of Costa Rica’s total installed electricity generation capacity. The project will be the first to establish an offset for river habitat in Central America, which could be replicated in other projects throughout the region. It will also contribute to the Jaguar Corridor Initiative and long term preservation of the largest living cat in the Americas. 7. BNS2 Wind Power Corporate Loan (Mexico): A non-sovereign guaranteed loan of up to $76 million will support an investment in a 74-megawatt (MW) wind farm in the Isthmus of Tehuantepec, in the Mexican State of Oaxaca. The wind farm, known as Bii Nee Stipa II, is Enel Green Power’s first wind farm in Mexico. The project supports growing efforts to harness wind energy in the “La Ventosa” region of Oaxaca, one of the world’s best regions for wind resources, and to reduce its reliance on fossil fuels to generate electricity. Bii Nee Stipa II, the fourth wind farm to be financed by the IDB in Oaxaca since 2009, has 37 wind turbine generators, with an expected annual net generation of 278 gigawatt-hours. The project, whose construction was completed in June 2012, is expected to reduce carbon emissions by 172,265 metric tons per year.

Beneficiaries:
Peru, Brazil, Uruguay, Costa Rica, Mexico and Chile will benefit from increase their generation energy capacity of renewable energy, reduce the carbon emissions and generate jobs.

Partners and financing:
Government of Canada, Private Sector Companies

Sustianble Energy for Haiti
To support the Government of Haiti (GoH) in developing a Sustainable Energy Matrix that promotes access to electricity through Renewable Energy (RE) sources and Energy Efficiency (EE) measures, as a way to reduce Haiti’s dependency on fossil fuels, encouraging efficient use of this nonrenewable resource


Activities:
Improve access to electricity through renewable energy demonstrative projects, efficient use of fuels and support for regulatory framework

Beneficiaries: Energy users, small businesses

Partners and financing: Sustainable Energy and Climate Change Initiative (SECCI IDB), Knowledge Partnership Korea Fund (KPK), Haiti Reconstruction Fund (HRF)