Based on our proprietary forecast model, using actual data for the first 11 months of year 2023 and forecasted data for the remaining month, it is evident that Uruguay already sources more than 81% of its electricity from low-carbon sources. This clean, sustainable mix includes approximately 41% from wind energy, nearly 27% from hydropower, in addition to net imports accounting for more than 11%. Biofuels and solar provide almost 10% and a little over 3% respectively. In contrast, fossil fuels like gas, which contribute a meagre 6.45%, are close to non-existent in Uruguay's low-carbon dominated electricity generation landscape. This achievement sets an encouraging foundation for decarbonizing other sectors, such as transport, heating and industry, which will necessitate a significant boost in electricity supply.
Given the current standing of low-carbon electricity generation in Uruguay, further expansion of wind technologies presents as a concrete solution to meet future electricity demands. Wind energy, already providing more than 40% of Uruguay's electricity, has demonstrated its potential in the country's energy sector. By enhancing wind capacity, Uruguay could leverage the substantial fraction of the country’s power drawn from this source and substantially amplify its sustainable clean energy pool.
Looking back, Uruguay's low-carbon electricity journey has been marked by significant focus on hydropower. The early 1980’s witnessed a stable increase in hydro electricity generation by roughly 2.2 TWh. However, the late 20th century was characterized by fluctuations, with certain years experiencing a decline in hydro electricity production. For instance, in 1988, hydro electricity fell by almost 1.8 TWh. Similar downwards trends were observed in 1999 and 2004. Despite these setbacks, the country demonstrated resilience with notable recoveries in the years following decreases in hydroelectric power. Yet, the most recent data from 2023 suggests a minor reduction of -2.4 TWh. Critically, despite the ups and downs, hydroelectricity has played an enduring role in Uruguay's green energy portfolio over the decades.