Uruguay Battery Storage and Smart Grids

Uruguay is a frontrunner in renewable energy integration in Latin America, with developing potential in the areas of battery storage and smart grid technologies. The country’s electricity matrix is highly renewable, with over 97% of its power generated from renewable sources. This renewable penetration requires efficient energy storage solutions to balance supply and demand and ensure grid stability.

In addition, Uruguay’s smart grid initiatives are critical to optimizing the management of electricity generated from renewable sources. The country’s commitment is reflected in various modernization projects and the widespread deployment of smart technologies related to fiber optics. Uruguay has already installed fiber optic cables throughout its entire electric grid. This infrastructure provides a robust foundation for advanced communication and data transmission capabilities across the country.

Despite its heavy reliance on hydropower for baseload power that acts as a natural battery, there is growing interest in battery storage solutions for grid stability and integration of renewable energy, though current regulations limit these to self-consumption. Feasibility studies indicate that battery storage is currently more profitable for low-tension environments. The country’s clean hydrogen strategy and the increasing number of green hydrogen projects highlight the long-term market potential for battery storage solutions.

Uruguay’s favorable regulatory framework, tax incentives, and ongoing modernization projects, such as the deployment of intelligent electricity meters funded by the Inter-American Development Bank, make it an attractive destination for investments in battery storage and smart grid technologies.

If you would like more information, please contact the U.S. Commercial Service in Uruguay at Office.Montevideo@trade.gov.