
The electricity sector of Uruguay has traditionally been based on domestic along with plants, and reliant on imports from and at times of peak demand. Over the last 10 years, investments in renewable energy sources such as and allowed the country to cover in early 2016 94.5% of its electricity needs with The total cost of this project is estimated to be between $1 and 3 billion USD. In addition, private companies have announced large investments in wind and solar for hydrogen production. [pdf]
The electricity sector of Uruguay has traditionally been based on domestic hydropower along with thermal power plants, and reliant on imports from Argentina and Brazil at times of peak demand.
All the potential for large hydroelectric projects in Uruguay has already been developed. Existing plants are Terra (152 MW), Baygorria (108 MW), Constitucion (333 MW) and the bi-national Salto Grande, with a total capacity of 1,890 MW. Uruguay has a favorable climate for generating electricity through wind power.
Installed electricity capacity in Uruguay was around 2,500 MW ( megawatts) in 2009 and around 2,900 MW in 2013. Of the installed capacity, about 63% is hydro, accounting for 1,538 MW which includes half of the capacity of the Argentina-Uruguay bi-national Salto Grande.
The current 6% private contribution to the generation park is expected to increase as investments in new wind power plants materialize. Renewables could play a role in future energy supply, in particular wind power, allowing Uruguay to reduce its dependence on imports.
According to the National Directorate for Energy and Nuclear Technology (DNETN), grid-connected wind power generation is one of the domestic resources with both medium and long term potential in Uruguay. The government has taken action to promote RE development.
A number of photovoltaic solar power plants have been built. Additionally, a new electrical grid interconnection has improved the ability to import or export electricity with Brazil. [citation needed] Installed electricity capacity in Uruguay was around 2,500 MW ( megawatts) in 2009 and around 2,900 MW in 2013.

Energy in Uruguay describes and production, consumption and import in . As part of climate mitigation measures and an energy transformation, Uruguay has converted over 98% of its electrical grid to sustainable energy sources (primarily solar, wind, and hydro). are primarily imported into Uruguay for transportation, industrial uses and applicat. Held up as a case study for successfully transitioning away from fossil fuels, Uruguay now generates up to 98% of its electricity from renewable energy. [pdf]
Credit: FRV Future Renewable Vision. After hydropower and wind, biomass is another important energy source, accounting for 15-20% of the electricity Uruguay produces. Wood pulp plants, for example, are now burning organic waste to produce energy for the grid, turning what was an environmental liability into an energy asset.
The Solution to Intermittency Renewable sources—hydroelectric power, wind, biomass, and solar energy—now cover up to 98% of Uruguay’s energy needs in a normal year and still over 90% in a very dry one, according to Méndez.
In 2009, Uruguay started holding auctions in which different wind companies from around the world came to bid on how cheaply they'd sell renewable energy to the country. In 2011, Uruguay held an auction intended to secure 150 megawatts of new wind power, which would have represented about 5% of the country's energy generating capacity.
In the 2000s, facing rising fossil fuel prices and energy demand, Uruguay was compelled to reconsider its energy strategy. Importing oil exposed the country to volatile global markets, as seen in the early 2000s when oil prices soared from $20 to a record $145 per barrel.
Renewable energy here is the sum of hydropower, wind, solar, geothermal, modern biomass and wave and tidal energy. Traditional biomass – the burning of charcoal, crop waste, and other organic matter – is not included. This can be an important energy source in lower-income settings. Uruguay: How much of the country’s energy comes from nuclear power?
Uruguay's energy grid was powered almost exclusively by domestically created, renewable energy, and, adjusted for inflation, consumer prices had gone down. Today, there are more than 700 wind turbines installed across Uruguay's countryside. "It was absolutely a complete transformation," says Méndez Galain.
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