Three birds fly past a wind farm near the city of Florida, about 100 km north of Montevideo, as a storm darkens the sky in the afternoon on February 8, 2018. Photo Credit: Mariana Suarez/AFP via Getty Images
Environment UruguayNear-Total Clean Power Shows How Energy Systems Can Transform
Uruguay has built a power system powered by nearly 100% renewable electricity, cutting costs, creating jobs, and strengthening energy security over the past decade.
“If you get the incentives right, the market will do the rest; you don’t need miracles, you need rules that make economic sense,” said Ramón Méndez Galain, former energy minister of Uruguay.
The country now generates about 99% of its electricity from renewables, with hydropower contributing 45%, wind up to 35%, biomass 15%, and solar filling the gaps. This shift halved electricity costs compared with fossil fuels, attracted around $6 billion in investment over five years, and created roughly 50,000 jobs, about 3% of the workforce. By reducing dependence on imported fuels, Uruguay has insulated its economy from global price shocks, while consistent policies across multiple governments ensured long-term stability and growth.
