How Uruguay Relies Almost Completely on
Held up as a case study for successfully transitioning away from fossil fuels, Uruguay now generates up to 98% of its electricity from
Once a net importer of energy, Uruguay now exports its surplus energy to neighbouring Brazil and Argentina. In less than two decades, Uruguay broke free of its dependence on oil imports and carbon emitting power generation, transitioning to renewable energy that is owned by the state but with infrastructure paid for by private investment.
Even in years with average rainfall, costs could often skyrocket to $1.1 billion a year. According to UTE, droughts and fluctuations in oil pricing threatened to more than double that, bringing Uruguay's annual energy bill to $2.5 billion.
The country's thermal power plants rarely need to be activated, except when natural resources are insufficient. Half of Uruguay's electricity is generated in the country's dams, and 10% percent comes from agricultural and industrial waste and the sun. But wind, at 38%, is the main protagonist of the revolution in the electrical grid.
To this day, Uruguay continues to rely heavily on its dams, including the imposing Salto Grande on the Río Uruguay, whose power is shared with Argentina, and several on the Río Negro. For decades, electricity from those dams and from generators running on gas and oil imported largely from Argentina and Brazil met Uruguayans' energy needs.
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