Stockholm (NordSIP) – Denmark is to invest DKK 300 million (€40m) in wind farms in Bolivia, the Danish foreign ministry has announced, as part of the government’s initiative to contribute to sustainable economic growth in developing countries.
Denmark seeks to make such contributions in areas where it has considerable expertise, resources and interests, such as wind energy. The Business Finance unit of Danida, the Danish International Development Agency, enables financing for sustainable infrastructure projects in countries where it is difficult to implement them on market terms.
Bolivia, a country of 11 million people, is one of the poorest countries in South America. The country’s energy policy aims to reduce dependence on fossil fuels and to use more sustainable energy sources. Denmark has previously provided advice, technical expertise and a minor pilot project on solar energy, supporting the green transition in the Bolivian energy sector.
This wind turbine project is thus a direct consequence of long-standing Danish-Bolivian aid cooperation. “The wind farms will be ready by 2020 and provide green energy to around 1 million people,” said Development Minister Ulla Tørnæs in a press release. “Denmark is thereby making an important contribution to Bolivia’s goal of green transition and increased access to a stable power supply for 95 per cent of the population by 2020. The project is yet another step towards achieving world goals by 2030.”
It will be the first project in Bolivia for Vestas, who won the assignment. “Vestas has installed wind turbines in about 80 countries and with our first project in Bolivia, where we once again will collaborate with IFU [the Investment Fund for Developing Countries, which provides advisory services and risk capital to Danish companies doing business in emerging markets], and another country will enjoy the benefits of cheap green energy from our wind turbines,” said Vestas Senior Sales Director Enric Català. “Vestas has installed more than 4GW of wind turbines in Latin America and has already contributed significantly to the continent’s green conversion.”
The wind farms will be installed around Santa Cruz and will total 108MW. The Danish contribution of DKK 300m will reduce the principal and pay interest during the term of the loan, while the Bolivian central bank is also contributing a loan to the project representing a total investment of approximately DKK 1.2 billion.