A reader asked us:
Is Uruguay a winner or loser in energy?
To answer this question, we enlisted the help of Johani Carolina Ponce, a seasoned journalist, editor and multicultural communications professional with over 25 years of dedication in her field. This is his response:
There is no doubt that Uruguay is an energy triumph and has become a global model for the transition to renewable energy. Its success lies in the rapid transformation of the energy matrix, achieving 98% of energy from renewable energy sources. This achievement is not accidental, but the result of a series of strategic decisions, consistent national policies and multi-sector collaboration.
Uruguay's energy revolution began in 2008 and is driven by a drive to ensure a reliable supply of electricity for a growing economy. Faced with a blackout crisis and high energy costs, the Uruguayan government appointed scientist Ramon Méndez Galán as national energy director. Méndez Galain has an ambitious and detailed plan to reduce the country's dependence on fossil fuels by using existing natural resources, especially wind energy.
Uruguay's strategy is based on a combination of factors. First, insufficient domestic supplies of fossil fuels such as coal or oil force the country to look for alternatives. Second, the abundance of wind energy in primarily agricultural and uninhabited areas facilitates the construction of wind farms. The decision to cover these open spaces with wind turbines is a decisive step towards energy independence.
One of the highlights of this transformation is the establishment of a public policy framework that ensures continuity and stability of programs regardless of changes in government. In 2010, multiple parties reached an agreement to make energy transition a national policy.
Financing methods are also innovative. Uruguay operates a public-private partnership model, with private companies responsible for the installation and maintenance of wind turbines, while state-owned company UTE distributes the energy. The model allows the private sector to bear the initial costs and guarantees purchase of the energy produced at a predetermined price for 20 years. This provides investors with security and facilitates the rapid deployment of necessary infrastructure.
The results of these policies and strategies are impressive. Uruguay currently has more than 700 wind turbines and has reduced the share of fossil fuel-generated electricity to just 2%. This change not only improves the reliability of electricity supply, but also significantly reduces costs for consumers.
Before 2008, approximately half of Uruguay's energy matrix came from imported fossil fuels, the cost of which sometimes exceeded 2% of GDP. Petroleum accounts for 55% of the country's total energy supply.
In addition, the energy transition has a positive impact on the labor market and education. The renewable energy sector creates new career and training opportunities, contributing to the country’s economic development and job creation.
