A solar energy project in Uruguay has been granted a $65.9 million (£39m) by the Inter-American Development Bank (IDB).

It will fund the construction, operation and maintenance of the 64.8MW La Jacinta solar farm, located in the northwest city of Salto.

The project is expected to generate around 96GWh of electricity a year and help ease the nation’s dependence on fossil fuels.

Jean-Marc Aboussouan, Head of Infrastructure at the Structured and Corporate Financing Department said: “This marks another step forward for the country in the introduction of non-traditional renewable energy in the energy network. It also shows that solar energy, like wind power, can be competitive and viable in financial terms in the region.”