Renewable Energy Fund: Innovative Finance for Clean Tech Solutions in Uruguay
Although the energy power matrix is "clean" in Uruguay, the country's primary energy matrix is still about 37% fossil fuel based. The industry and transportation sectors are still largely reliant on fossil fuels, emit a significant amount of carbon dioxide, and need a second energy transition to become clean industries. In this new decade, the Government of Uruguay aims to implement a second energy transition, which is seen as an opportunity and driver to achieve further economic and social development goals. The challenges are decarbonizing key economic sectors and improving the efficiency of the power system by accessing innovative technologies and affordable capital.
The Programme seeks to support Uruguay’s 2nd energy transition by decarbonizing the industry and transportation sectors, securing universal access to renewable energy, and spurring innovation and competitiveness in the energy sector. The Renewable Energy Innovation Fund is a blended finance window for green transition projects coupled with a technical assistance facility. A Technical Assistance facility will also be created to support companies as they validate second energy transition technologies and innovative business models. Beyond Uruguay, this program will have a strong demonstrative effect on innovative financing for developing countries.
This programme will improve Uruguay's environmental sustainability by helping deploy low carbon technologies and decarbonizing the industry and transportation sectors. It will also promote social and gender inclusivity, through increasing vulnerable groups' access to energy by improving connections, and women's participation in the renewable energy economy. Targets of the programme include: 101,122 GHG emissions reduced; achievement of 545% NDC commitments on electric buses and 91% in electric utility fleet; 5% energy-cost reduction in invested assets; 10% increase of women in managerial positions in invested assets; 99.9% of population with access to electricity; and 63% of renewable energy share in energy consumption.
- UN WOMEN
- Ministry of Industry Energy and Mining