Renewable Energies

Executive summary

Uruguay is a success story and a strategic investment platform for clean energy, characterized by proven political and regulatory stability and a coherent vision for the future. The country has successfully completed its first energy transition, transforming its electricity matrix into one of the cleanest in the world, and is now moving forward with a second phase focused on the decarbonization of transportation and industry, opening up high-value opportunities in fast-growing sectors.

An electrical platform: sustainability, reliability, and competitive costs

Uruguay's main strategic advantage is its electrical system, which offers a solid, low-risk foundation for any investment.

• A nearly fully decarbonized electricity mix: 99% of its electricity generation comes from renewable sources, meaning that any industrial or commercial operation in the country runs on clean energy, a key competitive advantage at the global level.

• International recognition and reliability: Uruguay's electricity system is the highest quality in Latin America and ranks eighth worldwide in energy performance according to the World Economic Forum. The infrastructure is robust, covering 99.8% of households and featuring a redundant transmission network that guarantees security of supply.

• Net exporter of energy: thanks to its generation capacity and strategic interconnections with Argentina and Brazil, Uruguay has gone from being an importer to a net exporter of energy, demonstrating the resilience and surplus of its system.

Electric mobility: a rapidly growing market with production incentives

The most direct consequence of clean energy is a booming electric mobility market, supported by a comprehensive government policy.

• Exponential growth in demand: the adoption of electric vehicles has skyrocketed. Market share rose from 4% in 2023 to 23% in the first eight months of 2025. Imports in the first eight months of 2025 already exceeded the record for the whole of 2024.

• Strong government support: a framework of tax incentives eliminates import duties (TGA) and the Specific Internal Tax (IMESI) for electric vehicles. In addition, there are benefits for corporate fleets through the Investment Promotion Law (COMAP) and a 50% reduction in the vehicle registration tax.

• Opportunity as a regional production platform: Uruguay offers an attractive regime for the assembly and export of electric vehicles. Benefits include zero-tariff access to the Argentine and Brazilian markets, flexible origin requirements (only 25% regional content in the first year), tariff exemptions for the import of assembly kits (SKD/CKD), and a 10% refund of the FOB value.

Green hydrogen: a strategic bet for the future

Uruguay is well positioned to become a major producer and exporter of green hydrogen (H2V) and its derivatives, representing an opportunity for investors with a long-term vision.

• Natural resources and competitive costs: the country has excellent combined wind and solar energy potential that would allow H2V production costs to reach between US$1.2 and US$1.4 per kilogram by 2030, positioning it competitively against world leaders such as Chile and Australia.

• Additional advantages: Uruguay has water availability, biogenic CO₂ sources for the production of synthetic fuels (e-methanol, e-jet fuel), a developed logistics infrastructure, and a strong government commitment, materialized in a national strategy and support funds for pilot projects.
  
  
• Investments underway: major international projects such as HIF Global (US$6 billion for electricity generation and e-fuel production) and Tambor Green Hydrogen Hub are already in development, validating the country's potential and demonstrating the investor’s confidence in the local ecosystem.