THU 01 OCT   09:40:03

URUGUAY GENERATES 98% OF ELECTRICITY FROM RENEWABLES

SUN 21 JUN 2026 SOUTH AMERICA

Uruguay now produces up to 98% of its electricity from wind, solar, hydropower and biomass, according to official figures. The South American nation of approximately 3.4 million people has achieved this through an energy transformation that began in response to a crisis in the late 2000s. High global oil prices and drought conditions in 2008-09 left Uruguay dependent on imported fossil fuels whilst its hydropower capacity fell short of demand. Power outages and rising electricity costs prompted the government to appoint Ramón Méndez Galain, a particle physicist, as energy secretary in 2008 to address the situation.

Méndez Galain determined that nuclear energy would not provide the solution for Uruguay and instead directed policy towards renewable sources. José Cataldo, a professor at the University of the Republic in Montevideo, led the country's pilot wind project in the early 2000s and states that 1,500 megawatts of wind capacity was added during the transformation. The shift in energy policy was driven primarily by concerns over energy sovereignty rather than environmental objectives alone. Uruguay now exports surplus renewable electricity to neighbouring Argentina and Brazil.

The country's energy transition offers a model for nations seeking to reduce fossil fuel dependence, particularly as geopolitical tensions have affected global energy markets and prices. The transformation occurred over less than two decades and demonstrates that rapid shifts away from imported fuels towards renewable generation are technically achievable. Uruguay's experience suggests that energy security rather than environmental concerns alone may motivate successful policy change in other nations facing similar pressures.

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