Uruguay generates 98% of its electricity from renewables.
- Trinity Auditorium
- Jan 9
- 2 min read
A relatively small nation spanning 175,000 square kilometres (76,568 square miles) with a population of 3.4 million – 96% of whom live in urban centres – Uruguay has no significant fossil fuel reserves. Fortuitously, its geography makes it ideal for utilising powerful rivers and uninterrupted grasslands for wind energy.
Uruguay has been internationally recognised as a leading example of transitioning national power systems away from fossil fuels (reducing negative externalities), generating 98% of its electricity from renewable sources. Avoiding nuclear power entirely, the country prioritised wind turbines as an affordable and reliable energy source, which now provide 40% of its capacity in under a decade. Uruguay subsequently expanded its solar and biomass capabilities, achieving an almost fully decarbonised energy mix. It now joins a select group of high-income nations, including Iceland, Sweden, and France, that produce over 90% of their energy from low-carbon sources. Once dependent on energy imports, Uruguay now exports its surplus electricity to neighbouring Brazil and Argentina.
Uruguay’s success cannot be fully understood without acknowledging the unique advantages it had at the outset of its energy transition:
an efficient state-controlled utility,
favourable geography, and
high levels of trust in its institutions.
These factors provided a foundation that many governments, whether in high-income or developing nations, do not typically enjoy.
As a small nation with strong social capital, a well-functioning democracy, and a history of collaboration with labour groups, Uruguay was well-positioned to implement broad changes. While it remains uncertain whether these conditions are essential for a successful transition, they have undeniably played a key role in engaging citizens and ensuring they benefit from affordable, reliable, and sustainable energy. See video below from Al Jazeera.
Comments