Uruguay achieves near independence from fossil fuels through renewables

Uruguay transitioned its national power grid to rely almost entirely on renewable energy sources following a severe energy crisis in 2008.

Ramon Mendes, a physicist who served as the national director for energy, led a systemic overhaul of the country's infrastructure. Between 2010 and 2020, the state and private investors spent approximately 7 billion US dollars on renewable energy projects. This transition involved creating new regulations, offering tax incentives, and involving universities and farmers in the planning process.

These efforts created 50,000 new jobs and established a 20 year legal framework for energy demand to ensure cost stability. Currently, the country generates 50 percent of its electricity from hydropower, 30 percent from wind, 15 percent from biomass, and 3 percent from solar energy. Fossil fuels now account for only about 2 percent of the electricity production mix.

Fernando Šajh and his company, SEG Inženijerija, manage 75 wind turbines, which represent 10 percent of the total wind turbines in the country. Despite this progress, electricity prices remain high for residents, with an average four person family paying about 150 US dollars per month. The country still imports crude oil, which makes up about 35 percent of the total energy mix for transport and industry.

To address this, the government is expanding electric vehicle use in Montevideo, the capital city. The city aims for all buses to be electric by 2040, and nearly 70 percent of new cars sold in recent months have been electric vehicles.