The current photo for these days of the electricity generation matrix Uruguay is (quite) similar to what there was a decade ago when a large part of the demand for electricity — in the middle of summer — was met with UTE thermal power plants, which basically burn diesel or fuel oil.
This Thursday, January 13, 2022, UTE’s fossil fuel machines were responsible for 50% of energy production in Uruguay, hydroelectric —which is the most economical— followed with 28%, wind and solar generation 8% each, and biomass 6%, according to data from the Electricity Market Administration (ADME).
Why does the generation of electricity power with windmills, which are dispersed throughout much of the country and is one of the main renewable sources, it’s so low? Sources of the electricity market explained to The Observedr that high temperatures affect the performance of wind power generation. When the sun is full and with high temperatures – as is happening this week with a new heat wave – the hottest air on earth rises and slows down the wind in the heights, which leads to the blades (blades) The mills don’t even move during the sweltering hours of the day. Under those circumstances, mills can reduce their contribution to UTE’s grid to a minimum generation of just 10 megawatt / hour (mWh).
Wind farms generate less when there are heat waves.
The the other side is found with the solar farms that the country has. Around noon, the Solar energy is at the top of its installed capacity of 220 MW (megawatts).
The rain deficit is not only heritage of this summer. Sources indicated that it is the third consecutive year where hydraulic generation is well below its historical average. Last year Uruguay had the worst hydroelectric generation in 15 years and the generation of electricity with water was 26% lower than the average of the last decade. In addition, the lack of rainfall led to the 2020-2021 biennium being the one with the lowest generation and participation in the hydroelectricity matrix in 18 years, according to the SEG Engineering consultancy.
Sources indicated that when there is enough wind to raise the wind generation, it is called to preserve the use of dams, since its reservoirs have been significantly reduced due to the lack of rainfall. “The lakes are low, but the situation is manageable,” they indicated. In fact, there is expectation that the rain forecasts announced for next week will help to rebuild these water reservoirs.
Export to Argentina and supply risks
Although Uruguay is appealing to its thermal park in a much more common proportion than it has been doing in the last decade, this week UTE was exporting electricity to Argentina. The neighboring country usually be deficient in the summer months due to consumption peaks.
“As Uruguay has availability with its thermal park, from the economic point of view it is profitable, and that is why it is being exported at specific times,” explained the sources. The rate set for the exchange is the cost of the most expensive thermal power plant being used plus a plus (or profit margin) of US $ 30 per megaWatt-hour (mWh). For example, turning on the La Tablada thermal power plant – the most expensive – today has a cost of US $ 230 per mW / h for UTE.
In the case of Brazil, it is not currently being exported because the neighboring country is waiting if the rains from the southeast that have been registered in recent weeks help it to rebuild its hydroelectric reservoirs. In addition, the offers made by Uruguay are high because its generation matrix has a high thermal component.
Sources indicated that today the Uruguay’s thermal back-up allows it to meet the high consumption that is occurring these days due to the heat wave without major shocksr. In addition, the daily peak power demand of other summers has not yet been beaten.
Sources indicated that the The only risk that future supply could experience would be a deficit in the availability of diesel —Which Ancap sells to UTE— to turn on the thermal park but It is not the scenario that exists today, since there is enough stock of this fuel to meet internal demand and even offer exports to neighboring countries.
