Electricity sector in Uruguay
The electricity sector of Uruguay has traditionally been based on domestic hydropower along with thermal power plants, and reliant on imports from Argentina and Brazil at times of peak demand. Over the last 10 years, investments in renewable energy sources such as wind power and solar power allowed the country to cover in early 2016 94.5% of its electricity needs with renewable energy sources.
| Data | |
|---|---|
| Electricity coverage (2019) | 99.85% (total), (LAC total average in 2007: 92%) |
| Installed capacity (2020) | 4.6 GW |
| Share of fossil energy | 2% |
| Share of renewable energy | 98% (including large hydropower) |
| GHG emissions from electricity generation (2006) | 1.55 Mt of CO2 |
| Average electricity use (2018) | 3,275 kW·h per capita |
| Distribution losses (2007) | 18%; (LAC average in 2005: 13.6%) |
| Consumption by sector (% of total) | |
| Residential | 41% |
| Industrial | 24% |
| Commercial and public sector | 35% |
| Tariffs and financing | |
| Average residential tariff (US$/kW·h, 2008) | 0.177; (LAC average in 2005: 0.115) |
| Average industrial tariff (US$/kW·h, 2008) | Large consumers: 0.047, medium consumers: 0.131 (LAC average in 2005: 0.107) |
| Services | |
| Sector unbundling | No |
| Share of private sector in generation | 6% |
| Share of private sector in transmission | 0% |
| Share of private sector in distribution | 0% |
| Competitive supply to large users | No |
| Competitive supply to residential users | No |
| Institutions | |
| No. of service providers | 1 (UTE) |
| Responsibility for transmission | UTE |
| Responsibility for regulation | Unidad Reguladora de Servicios de Energia y Agua (URSEA) |
| Responsibility for policy-setting | National Directorate of Energy and Nuclear Technology (DNTEN) |
| Responsibility for the environment | National Directorate of Environment (DINAMA) |
| Electricity sector law | Yes (1997) |
| Renewable energy law | No |
| CDM transactions related to the electricity sector | 3 registered CDM projects; 251,213 t CO2e annual emissions reductions |
Hydropower provides a large percentage of installed production capacity in Uruguay, almost all of it produced by four hydroelectric facilities, three on the Rio Negro and one, the Salto Grande dam shared with Argentina, on the Uruguay River. The production from these hydropower sources is dependent on seasonal rainfall patterns, but under normal hydrological conditions, can supply off-peak domestic demand.
Thermal power from petroleum fired power plants, activated during peak demand, used to provide the remaining installed production capacity. Generation from fossil fuel decreased substantially in recent years, with renewables accounting for 94.5% of electricity generation in 2015. Thermal power from biomass also provides additional power generation capacity.
The shift to renewable energy sources in recent years has been achieved thanks to modernization efforts, based on legal and regulatory reforms in 1997, 2002, and 2006, which have led to large new investments in electrical production capacity including from the private sector. Purchasing agreement offered by the government in the final reform in 2006 incentivized a rapid growth of sustainable energy capacity in the country. Wind power capacity has gone from negligible in 2012 to 10% of installed capacity by 2014. A new, highly efficient combined cycle power plant which can run on either gas or oil has been installed. A number of photovoltaic solar power plants have been built. Additionally, a new electrical grid interconnection has improved the ability to import or export electricity with Brazil.