Uruguay Power Generation and Environmental Technologies
Uruguay has made significant strides in power generation and environmental technology, establishing itself as a leader in renewable energy within Latin America. The country’s strategic focus on sustainability has led to significant investments in wind, solar, and biomass energy, positioning it as a global model for renewable energy adoption.
Uruguay’s regulatory framework, including the 2008 Energy Policy and the National Energy Strategy 2030, provides a roadmap for the country’s sustainable energy development. These policies emphasize renewable energy adoption, energy efficiency, and technological innovation. Uruguay collaborates with international organizations and countries to share knowledge and attract investment. Partnerships with entities like the International Renewable Energy Agency (IRENA) and bilateral agreements with countries such as Germany and Japan facilitate technology transfer and capacity building.
Having already decarbonized its grid, Uruguay is in the process of executing its second stage of the energy transition by decarbonizing transportation and industrial processes, with the aim of achieving full carbon neutrality by 2050. Additionally, Uruguay has become a focal point for international investment aimed at increasing capacity and producing clean hydrogen and its derivatives for export. This initiative requires more than doubling the country’s renewable energy assets. This second stage of decarbonization will bring new opportunities for companies that can provide solutions related to energy generation, green hydrogen, e-fuels, electric transportation, and energy efficiency. In addition, the government has provided instruments such as the Investments Promotion Law, which incentivizes projects with a sustainability outlook. Also, there are tax incentives through programs such as “Subite”, to promote both public and private e-mobility.
Although current renewable energy generation is sufficient to meet the country’s current electricity demand, Uruguay continues investing in power generation to cover expected increases in future electricity demand. There are also investment plans to support projects related to green hydrogen production. Notable power generation projects include the H2U Offshore Wind Farm, ANCAP’s (National Administration of Fuels, Alcohols and Portland) green hydrogen and eFuels plant, private green hydrogen and transportation projects and the renovation of the Salto Grande hydroelectric plant.
If you would like more information, please contact the U.S. Commercial Service in Uruguay at Office.Montevideo@trade.gov.