Uruguay’s state utility, UTE, has agreed to buy power from a 50MW PV power plant, the first deal to emerge under a national plan to procure 200MW of solar.
UTE and developer Fotowatia Renewable Ventures (FRV) have signed a 30-year power purchase agreement for ‘La Jacinta’, a project FRV was chosen to build late last year.
Under the terms of the deal, the company now has two years in which to complete the project.
The price it receives for the power the plant produces will depend on when it is completed: before the end of this year will secure a price of US$91.5/MWh, before the end of next year US$86.6/MWh.
The project will be built near Salto, northern Uruguay, and upon completion will connect to UTE’s network, requiring a new 150kV overhead transmission line and an expansion of the Salto substation.
Uruguay’s government has so far invited tenders under two separate bidding rounds to meet a target of 200MW of PV generating capacity.