Uruguay outdoor power supply modification

Uruguay's model demonstrates that a just energy transition is attainable, emphasizing public-social capacities and a commitment to sustainability. Uruguay is a renewable energy world leader. During 2017, the total amount of its electricity supply came from renewable sources (only 2% was thermal energy).

In this chapter, we characterize the causes that led to the recent increase of renewables share in Uruguay, we ask about the predominance of public or private property, the type of decentralization promoted by the new energy sources and account for the resulting modification of the development model.

Since 2019, energy has become a significant export for Uruguay, with some years bringing in hundreds of millions of dollars in revenue. In most of the world, when anyone mentions the need to transition to renewables, climate change dominates the public discussion.

Key findings reveal that Uruguay has significantly reshaped its energy matrix, with renewables accounting for a very significant amount since 2017, reducing carbon emissions and bolstering energy sovereignty.

Once reliant on exorbitantly priced fossil fuel imports for nearly half of its energy needs, Uruguay has gone from suffering frequent blackouts and power cuts to relative energy sovereignty based almost entirely on electricity generated from a stable mix of wind, solar, hydroelectric, and bioenergy sources.

In 2016, even before several more renewables projects went online, it hit 94.5 percent green energy. In 2019, according to an analysis by the Uruguayan company SEG Engineering, the country ran on 98 percent renewable energy.