Uruguay Renewable Energy Sector has made significant strides in developing its renewable energy sector over the past decade. Renewables now account for over 95% of the country’s electricity generation, with wind and solar power seeing rapid growth. This transition toward clean energy brings important economic opportunities.
Several large scale wind farms have been constructed in recent years, with over 1000 MW in total generation capacity now installed across Uruguay. This positions wind as the leading renewable electricity source. Several additional wind energy projects are also planned or under construction, including approval for a major new 500 MW farm in 2022. As capacity grows, Uruguay aims to become a clean energy exporter, providing surplus renewable power to neighboring countries.
Within Uruguay Energy Sector – there is rapid growth of the wind power and broader renewables industry is driving business opportunities in related sectors locally. These include turbine manufacturing, maintenance services, civil works and electrical contractors, energy storage systems, and engineering consultancies specializing in grid stability and management technologies to balance variable wind and solar supply.
The ongoing expansion of renewable energy capacity has attracted sizable foreign direct investment into Uruguay, providing a boost to construction activity and the creation of hundreds of jobs in more rural interior regions. Community trusts and benefit sharing schemes aim to distribute some of the economic gains at local levels.
In addition, the transition toward renewable electricity helps further reinforce Uruguay’s global reputation for sustainability, innovation and social progress. This strengthens the premium market positioning for the country’s agricultural exports like wine and beef. It also supports Uruguay’s fast growing tourism industry and nascent software services exports in areas like financial technology.
However— further investments are still needed in electricity transmission infrastructure and grid-scale energy storage solutions to accommodate rising renewables capacity and enable larger scale exports across the region.
