Renewable Energies

Executive summary

• The first stage of the energy transition positioned Uruguay at the forefront regarding renewable energy. Uruguay is the country with the second highest share of renewable energy electricity production (such as solar and wind) globally REN21 (2022), and leader together with Denmark, Ireland and Portugal in terms of wind energy production^[1].

• Private companies played a crucial role in the energy transformation. For example, Ventus, a Uruguayan company specialized in wind energy, whose 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 Uruguayan government announced the first major investment in green hydrogen production in the country by the Chilean company HIF Global. The project, which will be located in the department of Paysandú, will involve an investment of US$ 6 billion. Construction of the green hydrogen plant will begin in 2024 and is expected to last around 30 months.