Energy in Uruguay - Renewable Energy Resources

Renewable Energy Resources

Renewables could play a role in future energy supply, in particular wind power, allowing Uruguay to reduce its dependence on imports.

All the potential for large hydroelectric projects in Uruguay has already been developed. Existing plants are Terra (152 MW), Baygorria (108 MW), Constitucion (333 MW) and the bi-national Salto Grande, with a total capacity of 1,890 MW.

Uruguay has a favorable climate for generating electricity through wind power, but its cost – estimated at US$45–50/MWh for large projects (50-100 MW) - is still uncertain. Consequently, the estimated wind potential of 600 MW cannot yet be taken as a feasible value, from an economic standpoint. Despite those difficulties, according to the Government’s strategic plan, Uruguay will have 300 MW of installed wind capacity in 2011 and should reach 500 MW in 2015. The National Environmental Directorate (DINAMA) has already received several requests for new wind projects and UTE had a very positive response to the bidding process launched in mid-2009 In August 2009, the government of Uruguay approved a Decree that allows UTE to bid 150 MW of wind power. USD 300 million of private investment are expected as a result.

The first wind farm in Uruguay, the 10 MW Nuevo Manantial project in Rocha, which will sell the electricity generated to UTE, started operations in October 2008. A few months later, in January 2009, UTE’s 10 MW wind farm in Sierra de los Caracoles also started operations.

Biomass based on renewable sources such as rice husk could generate up to 20 MW at competitive prices. Firewood has already been used as a substitute for fuel oil in the 1980s, and cellulose projects expect to generate up to 65 MW for sales to the network.