FRV Gains Power Purchase Agreement for Uruguay Solar Park

Fotowatio Renewable Ventures B.V, a solar developer, has been offered a power-purchase accord with Uruguay’s state utility to develop a 50-megawatt solar park.

The developer, backed by U.S. investor Denham Capital Management LP, was offered the 30-year deal with Administracion Nacional de Usinas y Transmisiones Electricas, FRV said today in an e-mailed statement. The park will be built in the northern Uruguayan town of Salto next year once permits are secured.

Uruguay began its first tender for large-scale photovoltaic plants on May 27 seeking to support as much as 200 megawatts of projects to diversify its generation. The plants, requiring a total of about $400 million of investment, will be paid $91.5 per megawatt hour generated. The rate is the world’s lowest for solar power, Bloomberg New Energy Finance estimates.

FRV, based in Amsterdam, has developed solar projects with more than 350 megawatts and operates plants in Spain and Italy. Denham bought a majority stake in the company in March 2012, agreeing to invest $190 million in solar projects in markets such as Australia, South Africa and Latin America.

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