Uruguay is at the top of the world ranking for renewable energies due to its successful energy transition process

Uruguay stands out for achieving a successful energy transition, not only in terms of the amount of energy generated but also in terms of prediction tools and procedures, according to a report by the global network REN21 titled “Renewable Energy Systems and Infrastructures.”

The study explores the state and trends of the global energy system and ranks Uruguay sixth with 90% renewable energy generation, including hydro, wind, and solar. (Read the report here).

Uruguay ranks among the leaders in this sector, along with Denmark, Portugal, Germany, Lithuania, and Greece. Below Uruguay, but also in important positions, are Spain, the United Kingdom, and Ireland.

This ranking is based on data on wind, solar, and other renewable energy sources, including Uruguay’s most characteristic hydroelectric power. Thus, the country has 36% wind and 3% solar energy, but it reaches 90% of the total, mainly due to its hydroelectric sources.

“Uruguay stands out as an example of a country that has successfully achieved an energy transition not only in the amount of generation but also in the predictive (instruments) in this area. In the transition process, Uruguay has carried out tenders with interesting conditions for companies to create economic value in the country,” Andrea Wainer, a member of the REN21 research team, told the newspaper El País.

Wainer also noted that the country generated energy surpluses this year.

Uruguay is at the forefront of energy policy in Latin America and the world, and several other countries have emulated its successful model. The key to achieving these milestones has been the country’s natural conditions, political will, modern and practical regulatory framework, and implementation of a public-private partnership model for investment in the sector.

Using forward-looking legislation and incentive schemes, Uruguay is also efficient in attracting good business in the sector.

Its energy generation policy encouraged significant investments from the private sector, which, together with the public sector, invested more than 3% of GDP annually in energy infrastructure during the period in which the change of the energy matrix was being processed.

In this regard, the 2016 La REN 21 report had already ranked Uruguay fifth in the world in terms of investments in renewable energy as a percentage of GDP.

The Renewable Energy Policy Network for the 21st Century, or REN21, is an international network founded in 2004 with more than 80 renewable energy stakeholders, including governments, intergovernmental organizations, NGOs, science academies, and industry associations.

Its objective is to promote joint research and action, provide information, and facilitate knowledge exchange to deploy renewable energies and abandon fossil fuels worldwide.

Learn more about the renewable energy sector in Uruguay.