BDO in Uruguay – Cra. Katherin Viera – [email protected]
With the impulse of the Energy Policy approved in 2008 by the Executive Power, in recent years Uruguay has managed to position itself as one of the countries that has best transitioned the energy evolution towards the use of renewable sources, both regionally and internationally . Said long-term Policy (period 2005-2030) bet on the incorporation of indigenous sources of energy, in particular renewable ones, thus seeking to reduce dependence on oil.
In particular, wind power and solar photovoltaic have gained noticeable ground. According to the 2020 National Energy Balance prepared by the Ministry of Industry, Energy and Mining (MIEM), the generation of wind-type electricity represents 40% of the energy matrix, while solar 4%, when in the year 2005 none of them contributed to the national production.
In the last decade, the generation of electricity from wind power has increased markedly from 1% to 40%. The most recently applied solar source, although it has a smaller share in the total generated, has also shown sustained growth in recent years, as of Decree No. 133/13 that summoned companies interested in generating energy through photovoltaic solar plants. large-scale.
Such is the capacity to generate energy, that the country exports it to its neighbors Brazil and Argentina, forecasting a record for this year due in large part to the historical drought that Brazil has suffered.
Accompanying the notorious achievements related to clean energies, it is worth mentioning the very high percentage of electrification that the country has, being one of the best in Latin America with 99.8%. With the aim of eliminating the still existing gap, the 100% Electrified Uruguay plan has been drawn up, which seeks to reach all homes in the country, with the extension of 400km of the electricity grid, as well as the distribution of photovoltaic solar kits for those homes rural areas further from the grid.
International look
Several have been the organizations that highlight our country as a promoter of clean energy.
The REN21 Renewables Global Status Report published in June of this year, places Uruguay in second place worldwide in the generation of electricity through variable renewable sources, in contrast to the stagnation of global goals related to this thematic for the year 2020, in which it emphasizes the G20 countries according to the press release issued by said organization.
Along the same lines, the Global Electricity Review recently carried out by EMBER, an organization focused on the transition from global electricity to clean energy, positions Uruguay within the top 15 worldwide, ranking second in wind power generation. and solar (44%), being only surpassed by Denmark (61%). Within this ranking, it only accompanies Uruguay as a Latin American country, Chile with 13th place (17%).
According to the latest edition of the World Economic Forum’s Fostering Effective Energy Transition 2021 report, published in April 2021, Uruguay was the best positioned Latin American country in the energy transition index (ETI), at 13th place of a total of 115 countries surveyed.
Bet on the future
At the VII LATAM Renewables Congress and the 1st WEC Uruguay Chapter Congress held in September at the LATU, the strategic lines for the implementation of the second energy transition in the country were raised, given the recognized achievement of the first transformation, previously addressed .
The focus of the second transition would be oriented to decarbonisation, making greater use of the electrification already achieved, particularly in transportation. Some challenges that arise in this regard refer to the installation of a larger charging network throughout the territory, as well as the high cost that electric vehicles still represent.
At the same time, it is committed to the development of green hydrogen that has multiple applications for industry and mobility. This is produced by electrolysis of water using renewable energy, requiring large amounts of electricity to break down the water molecule. Thus, an opportunity is seen in the surplus energy generated in Uruguay and its wide availability of renewable energy, which would be used to produce hydrogen at lower costs than in other countries whose electricity generation is more expensive.
Currently, progress is being made in a pilot plan to generate hydrogen on a small scale for the transport sector, which will allow for experience and learning in the matter, and in a future instance the feasibility of meeting the imminent demand for hydrogen in developed countries will be evaluated.
Uruguay continues to bet on new opportunities for the efficient use of renewable energies in pursuit of decarbonization, with the challenges of designing attractive policies to attract investment and plans that are sustainable in the long term.
