Uruguay's State Power Company UTE Leading the Way in Renewable Energy Expansion
Key Ideas
  • Uruguay's state power company UTE is undertaking a 2024-47 plan to expand solar, wind, and gas capacities in blocks, aiming for sustainable fuel conversion in the future.
  • The country is making significant strides in electrification and decarbonization efforts, with a focus on boosting clean energy supply and developing a green hydrogen economy.
  • Private sector involvement in solar and wind projects, along with a shift towards green hydrogen production, is contributing to Uruguay's renewable energy goals and grid stability.
  • Infrastructure improvements include the promotion of electric vehicles, electric buses, and the adoption of green hydrogen in heavy transport, demonstrating a commitment to sustainable practices.
Uruguay's state power company UTE is leading the charge in renewable energy expansion with a 75MW solar project in Punta del Tigre, San José. Under the 2024-47 generation park expansion master plan, UTE is working towards meeting a solar capacity growth target of 100MW-plus by 2026. The company has already put a 25MW plant into service and is in the tendering phase for another 25MW plant. The plan also includes future expansions in wind and gas capacities with a vision to convert thermoelectric plants to run on sustainable fuels. Uruguay, reliant on imported hydrocarbons, is focusing on increasing electrification, decarbonization, and the development of a green hydrogen economy. A recent rule change has paved the way for recognizing firm capacity provided by renewables in the national power network, creating opportunities for a market of firm capacity. The country's investment in renewable energy is evident, with a virtual power sector monopoly held by UTE carrying out a significant investment plan. Uruguay aims to continue its high renewable energy usage, with 98% of electricity sourced from renewables in the first seven months of the year. The country's efforts extend beyond electricity generation, with plans to promote electric vehicles, replace diesel buses with electric units, and explore green hydrogen usage in heavy transport. Infrastructure upgrades include expanding vehicle charging points and implementing a smart meter program. Additionally, Uruguayan transport operator Buquebus is set to build the world's largest electric ferry, further showcasing Uruguay's commitment to sustainable practices.
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