Uruguay stands out as a global leader in clean electricity, with an impressive 98.42% of its electricity stemming from low-carbon sources over the past year, from September 2024 to August 2025. More than half of this green electricity is generated by hydropower, accounting for about 47%, while wind contributes almost a third at 34%. Biofuels and solar power make up roughly 14% and 4%, respectively, to this sustainable mix. The nation's negligible reliance on fossil fuels—1.58% of its electricity comes from these sources, with gas being the primary contributor—emphasizes its commitment to a sustainable future. Additionally, Uruguay plays a pivotal role in helping neighboring regions lower their emissions through significant electricity exports. Looking ahead, the country faces the critical task of expanding its clean electricity supply to electrify other sectors such as transport, heating, and industry, which will invariably increase demand.
Is Electricity Growing in Uruguay?
Unfortunately, despite its remarkable achievements, Uruguay is currently facing a challenge in maintaining the growth of its electricity consumption. Over the last year, electricity consumption dropped to 3933 kWh per person, a notable decline from the previous record of 5100 kWh per person in 2024. Similarly, low-carbon electricity generation per capita has decreased from a high of 4825 kWh in 2024 to 3871 kWh. This downward trend of 954 kWh per person in low-carbon electricity generation raises concerns about the country's ability to meet increasing energy demands in the future. This stagnant or declining growth is discouraging, highlighting a need for renewed efforts in expanding electricity production to meet Uruguay’s sustainability and electrification goals.
Suggestions
To address future energy demands and support sustainable growth, Uruguay could focus on expanding its already successful wind energy capacity. Since wind power contributes significantly to the nation's low-carbon electricity, increasing its share can help meet rising demands while maintaining a low environmental impact. Additionally, Uruguay could benefit from diversifying its clean energy portfolio by investing in solar and exploring the potential of nuclear energy. Both nuclear and solar power offer reliable, scalable options to complement current energy sources, reduce dependency on external factors like rainfall or fuel supply, and strengthen Uruguay’s green energy infrastructure.
History
Uruguay's journey with low-carbon electricity has seen significant developments over the decades, particularly in hydropower. Beginning in the early 1980s, the country experienced notable growth with substantial increases in hydroelectric power. However, there were fluctuations, including declines in 1988, 1999, and 2004. The late 2000s and early 2010s brought a mixed performance with periods of both increase and decrease in hydroelectric generation. In recent years, particularly in 2023, there were further setbacks with hydro resources. Nevertheless, in 2024, Uruguay marked a revival with a significant 3.8 TWh increase in hydro generation, underscoring the continual importance and adaptability of hydropower in its low-carbon strategy. Meanwhile, other low-carbon sources like biofuels showed less consistency, with a recent decline in 2025, highlighting the need to focus on robust, clean, and scalable energy solutions like solar and nuclear to secure a sustainable future.
Electrification
We estimate the degree of electrification by comparing electricity and total energy emissions. More about methodology.