Uruguay has made remarkable progress in its electricity sector, with more than 94% of its electricity coming from low-carbon sources. This impressive achievement underscores the nation's commitment to sustainability. Among the low-carbon sources, hydropower contributes over 40%, while wind power accounts for nearly 28%, and biofuels make up almost 22%. On the other hand, fossil fuels constitute a small fraction, about 5%, of Uruguay's electricity mix. Solar power, while currently modest at roughly 3%, represents an area ripe for expansion. Additionally, Uruguay acts as a significant net exporter of electricity, aiding neighboring regions in reducing their emissions. The next frontier for Uruguay lies in electrifying sectors such as transport, heating, and industry, requiring the generation of even more electricity.
Is Electricity Growing in Uruguay?
Electricity consumption in Uruguay is indeed growing, indicating a positive trend towards increased electrification. In 2024, the total electricity consumption reached 5,100 kWh per person, reflecting an increase from the previous record of 4,730 kWh per person set in 2019. This increase of 369 kWh per person highlights the country's rising electricity demand. Simultaneously, low-carbon electricity generation has also grown, with 2024 witnessing 4,825 kWh per person compared to the 4,648 kWh per person recorded in 2019. This growth of 177 kWh per person in low-carbon electricity generation is a testament to Uruguay’s active steps in further greening its energy portfolio.
Suggestions
To sustain and accelerate this low-carbon shift, Uruguay can focus on expanding its existing wind energy infrastructure. Given that wind power already accounts for a significant portion of electricity generation, bolstering this sector can yield excellent results. Additionally, while biofuels contribute to the current low-carbon mix, investing in more wind, along with exploring the potential of solar power, would diversify and strengthen Uruguay's clean electricity capacity. Addressing intermittency and resilience can also be achieved in tandem with storage solutions and grid enhancements. Elevating solar energy's role, given its current modest contribution, would aid in balancing the energy mix and further propelling Uruguay on its green energy path.
History
Looking at the history of low-carbon electricity in Uruguay, hydropower has played a pivotal role for decades. In the early 1980s, there was significant positive growth, with substantial increases recorded in 1980 and 1983. The 1990s witnessed fluctuations, with notable gains in 1990 and 1998 offset by declines in 1995 and 1999. The early 2000s followed a similar pattern, highlighted by substantial increases in 2001 and a downturn by 2004. The mid-to-late 2000s experienced growth surges, particularly in 2007 and 2010, countered by notable decreases in other years such as 2008 and 2011. The 2020s opened with challenges, including a decline in 2020, but saw recovery by 2024 with hydropower regaining a positive trajectory. This historical narrative emphasizes the crucial nature of consistent and strategic investments to weather the natural variabilities in hydropower and bolster Uruguay's clean energy profile.
Electrification
We estimate the degree of electrification by comparing electricity and total energy emissions. More about methodology.