Renewable Energies

Executive summary

• The first stage of the energy transition positioned Uruguay at the forefront of renewable energies, placing it as the seventh country in the world with the highest share of variable renewable energies (such as solar and wind) in its electricity generation, according to information from REN21 (2024). In addition, the country is the leader along with Denmark and Lithuania in wind energy production.

• Private companies played a key role in the energy transformation. A good example is Ventus, a Uruguayan company specialized in wind and solar energy. Its experience and success in the local market allowed it to export its services to other countries in the region.

• The production of green hydrogen is a natural step taken by Uruguay in its process of decarbonization of the energy matrix. Uruguay offers certain advantages:
  • High potential for renewable energy generation
  • High availability of water and biogenic CO₂
  • Competitive production costs of Green Hydrogen and derivatives
  • Strategic location in the region and easy access to the Atlantic Ocean
  • Logistics and supply chain continuity
  • Fiscal incentives and government support

• The government of Uruguay announced the first major investment in the production of green hydrogen in the country. It will be carried out by the Chilean company HIF Global with an investment of US$ 6 billion including the investment in generation. The project will be located in the department of Paysandú. The construction of the green hydrogen plant will begin in 2026 and is expected to last about 30 months.