Uruguay has made significant progress in shifting its electricity generation towards low-carbon sources, reaching an impressive benchmark with more than 94% of its electricity coming from clean energy. This achievement is largely thanks to a diverse mix of low-carbon technologies, including hydropower, which accounts for over 42% of the energy mix, wind power contributing almost 28%, biofuels providing about 22%, and solar energy at around 3%. In contrast, fossil energy accounts for a small share, slightly more than 5% of the total electricity production. Beyond its internal achievements, Uruguay plays a pivotal role in reducing regional emissions by being a significant net exporter of electricity to its neighbors. The next step for Uruguay involves a strategic challenge: the electrification of transport, heating, and industry to further reduce carbon emissions, which will demand a substantial increase in electricity supply.
Is Electricity Growing in Uruguay?
As of 2024, electricity consumption in Uruguay has shown commendable growth, with the latest figure reaching 5097 kWh per person, surpassing the previous record set in 2019, which was 4730 kWh per person. This marked an increase of 367 kWh per person, indicating a healthy appetite for increased electricity consumption. Low-carbon generation specifically has also seen an upward trend, with the latest numbers at 4823 kWh per person, compared to the previous record of 4648 kWh per person in 2019, reflecting a growth of 175 kWh per person. This steady increase in electricity consumption and generation highlights Uruguay's commitment to sustainable growth and a transition towards more electrified sectors in the economy.
Suggestions
To continue its upward trajectory in low-carbon electricity generation, Uruguay could focus on expanding its wind power capacity. Given that wind energy already contributes a significant portion to the electricity mix, further investment in this area could accelerate the country's clean energy transition. Additionally, exploring the potential of solar and considering the adoption of nuclear power could provide Uruguay with reliable and potent sources of clean energy, ensuring the country can meet rising electricity demands while continuing to lower its carbon footprint.
History
The history of low-carbon electricity in Uruguay is characterized by significant developments in hydropower from the late 20th century onwards. In the early 1980s, there was a surge in hydropower generation, with 1980 and 1983 both witnessing an increase of 2.2 TWh. The late 1980s and early 1990s saw fluctuations, including a decrease of 1.8 TWh in 1988 and a remarkable rise of 3.1 TWh by 1990. The 1990s continued this trend with another significant increase in 1998 followed by a notable drop in 1999, reflecting the ebb and flow nature of hydropower sources. More stable periods emerged in the early 2000s with increments and reductions, and by 2007, hydropower saw its largest growth of 4.5 TWh. The trend continued with some decline, but a rebound was noted in 2013 with an increase of 2.8 TWh. Recent years highlight continued volatility, yet a significant boost occurred in 2024 with an increase of 3.8 TWh, showing that Uruguay continues to rely heavily on hydropower while also seeking to diversify its low-carbon energy portfolio.
Electrification
We estimate the degree of electrification by comparing electricity and total energy emissions. More about methodology.