Events
|
|
|
|
|
BBL jointly organized and sponsored by: The World Bank Treasury and ESMAP |
||
|
Uruguay’s state-owned public electric company, Administración Nacional de Usinas y Trasmisiones Eléctricas (UTE) generated more than 80 percent of its energy needs from hydropower until the early 2010s. However, when water levels are low, UTE is forced to rely on alternative fuels such as oil and natural gas to meet energy demand. High oil prices have resulted in high energy generation costs which creates several issues for UTEs business, as well as for the end consumer and the national budget. The Government of Uruguay has embarked on an ambitious investment plan to diversify the country’s energy matrix, while also strengthening the available financial mechanisms to mitigate short term volatility in electricity prices. The World Bank Group is supporting this plan with technical assistance for the development of a financial planning framework to optimize the use of different financial strategies and instruments, including the use of Uruguay’s Energy Stabilization Fund, loans, energy imports, insurance like instruments, and hedging against global oil price fluctuations, as well as the promotion of structural capacity. In addition the World Bank group has designed specific financial instruments to mitigate financial risks, such as the first contingent IPF loan to increase the financial capacity of the Energy Stabilization Fund or a weather- and oil price-indexed insurance transaction. This BBL provided an opportunity for Bank staff to learn more about how the contingent financial framework and the innovative use of financial instruments can help build financial resilience in the energy sector and how they can be applied to other countries facing similar challenges. |
|
Chair |
|
|
Presenters |
|
|
Discussants |
|
|
For more information contact, please contact esmap@worldbank.org |