Uruguay’s state-owned power company and Brazil’s largest electric company have signed an agreement to build a 65 megawatt wind farm in Colonia.
According to El Pais, the 50/50 joint venture will oversee the construction of a US$100 million wind farm in Tararias, Colonia set to begin in the next 45 days. Upon completion in July 2014, the UTE/Eletrobras partnership will sell its generated power to the local utility, UTE.
The announcement was made during the Sinergia Uruguay Brasil Chamber event held at the Conrad Hotel in Punta del Este. Speaking at the event (photo), President Mujica said Uruguay and Brazil have an opportunity to show the rest of Latin America that integration can have mutual benefits.
Eletrobras president Jose Da Costa Carvalho Netto describes the joint venture as important for both countries “because it marks the beginning of an understanding between our companies for the future integration of the electric systems of Brazil and Uruguay.”
Both countries are pursuing new strategies for lowering electric costs. Uruguay’s stated objective is to diversify its energy mix such that 90% of generation comes from renewable sources including wind, solar, hydroelectric and biomass by 2015. Brazil’s recent strategy of forcing utilities to slash power prices has some analysts slashing earnings-per-share estimates for Eletrobras. (Full Story in Spanish)
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