Uruguay Energy Storage Power Franchise

What is Uruguay's energy strategy?

In 2005, Uruguay initiated a dramatic shift in its energy strategy, moving from petroleum-based electricity generation to renewable sources. In 2024, Uruguay generated 99 percent of its electricity from renewable sources using hydropower (42 percent), wind (28 percent), and biomass (26 percent).

How much solar energy does Uruguay get?

Uruguay receives an average 1,700 KW per square meter of sunlight a year, on par with Mediterranean countries although solar represents only a fraction of the country’s total electricity production. Uruguay’s Investment Promotion Law offers incentives for investing in solar manufacturing, systems implementation, and solar energy utilization.

How much electricity does Uruguay export to Brazil?

In 2024, UTE, the state-owned company in charge of managing Uruguay’s electrical grid, officially reported exporting 2.026 GWh for approximately $104 million in energy exports. One of the limiting factors for electricity exports to Brazil are the number of cross-border connections, currently 570 MV from Melo and 70 MV from Rivera.

What is the oil and gas industry like in Uruguay?

Uruguay’s oil and gas sector is relatively underdeveloped, as the country does not produce hydrocarbons domestically and relies entirely on imports to meet its fossil fuel needs. State-owned ANCAP (Administración Nacional de Combustibles, Alcohol y Portland) oversees the sector, managing imports, refining, storage, and distribution of fuels.