Uruguay's Transition to Renewable Energy on the Rise
Key Ideas
  • Uruguay aims to expand its renewable energy generation park from 2024-43, focusing on wind and solar PV to meet increasing energy demands.
  • State utility UTE plans to add solar and wind capacity in blocks, with a shift towards sustainable fuels in the long term.
  • The economic analysis suggests the economic advantage of incorporating renewables, particularly solar PV from 2025 and wind power from 2030.
  • The country is considering green hydrogen projects and exploring battery technology to support the grid and delay thermoelectric generation.
Uruguay is embarking on a significant transition towards renewable energy expansion, as highlighted in a report by the energy and industry ministry covering the period 2024-43. The report outlines scenarios to meet growing energy demands, emphasizing the installation of 355MW of wind and 545MW of solar PV by 2034 under the Paris Agreement NDC commitments. An economic analysis indicates the advantage of integrating renewables, with a specific focus on solar and wind power. State utility UTE is strategically planning the expansion of solar and wind capacity in blocks, with a long-term vision of shifting towards sustainable fuels and maintaining grid stability. In addition to traditional renewable sources like solar and wind power, Uruguay is exploring the potential of green hydrogen projects linked to HIF Global's Paysandú e-fuels initiative. The country is also considering the role of diesel generation, battery storage, and thermoelectric power in meeting future energy demands. Notably, the study suggests an increasing reliance on solar power compared to wind over the long term. Furthermore, UTE is actively working on current projects, such as the Melo solar PV project and the construction of a 25MW solar PV park in San José department. The company's growth targets indicate a strong focus on solar energy expansion in the coming years. Overall, Uruguay's energy landscape is evolving towards sustainability and efficiency, with a clear commitment to renewable energy sources and the exploration of innovative technologies like green hydrogen and battery storage to ensure a reliable and green energy supply for the future.
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