Uruguay 's private sector is awaiting contractual signals to reinvest in renewables amid a scenario where new generation capacity would need to be added by 2030 after only 100 MW were tendered (under EPC modality) in the last year and a half.
“An average of 500-600 MW more than current capacity is needed to keep pace with organic demand growth. And we're not even considering the new demands of emerging technologies,” stated Enzo Melani, director of the Uruguayan Renewable Energy Association (AUDER) , during the streaming event “It Had to Be Said and It Was Said ,” which is currently underway. Strategic Energy forward.
“There are maximum scenarios that talk about above 800 MW, mainly photovoltaic until 2030 and then wind power will begin to be incorporated in parallel,” the executive explained.
Watch the full stream: https://www.youtube.com/watch?v=GZv1QVxJAUw&t=3082s
The forecast comes from one of the latest generation expansion planning studies, prepared at the end of 2024, which anticipated the need to add photovoltaic parks from 2026 onwards , with solar blocks of 100 MW per year until 2030.
The country enters this discussion after four or five years with renewable energy levels exceeding 90%. The challenge now is to transform that advantage into a platform for electrifying consumption that still relies on fossil fuels.
The opportunity is initially concentrated in solar technology. Its share represents barely 4% of the energy mix , compared to more than 40% for hydropower, just over 30% for wind, and nearly 15% for biomass.
“Once there is an abundant, renewable and competitive electricity supply, that enables and helps to attract investments in new energy-intensive technologies such as data centers, crypto-mining centers, hydrogen and derivatives,” Melani added.
The arrival of these projects could accelerate investments and increase projected needs. For AUDER, electricity should not only keep pace with GDP growth but also act as an incentive for new industrial activity.
Until now, recent solar expansion has been concentrated in investments by the National Administration of Power Plants and Electrical Transmissions (UTE), which retains ownership of the assets and only contracts their engineering, supply and construction (EPC).
One of the projects is Punta del Tigre B , financed through a $27 million bond issue. The documentation identifies a capacity of 25 MW, although the state-owned company indicates it will reach 28 MW installed.
In addition, there is the Melo solar park, whose construction was announced in April 2026. It will have 100 MWp, approximately 140,000 panels and an investment of over 75 million dollars, making it the largest photovoltaic installation in Uruguay.
This pace contrasts with demand forecasts and fuels business calls to reinstate mechanisms that allow financing new capacity without relying exclusively on the state-owned company's balance sheet.
Consequently, AUDER held meetings with the Minister of Industry, Energy and Mining, Fernanda Cardona , and with the technical team of the portfolio to discuss the participation of independent developers.
“We believe that sooner rather than later, hopefully some announcements can be made in the coming days regarding the private sector and we can move forward with PPA-type mechanisms or similar,” the association's director anticipated.
These decisions could gain momentum during the 12th LATAM Renewables Congress , to be held on July 28 and 29 at the Auditorium of the Technological Laboratory of Uruguay in Montevideo. The event is organized by AUDER under the theme "The Age of Electricity," with the participation of authorities, specialists, and representatives from the public, private, and academic sectors.
The agenda will focus on planning for new capacity, financing projects, and the role of electricity in the next stage of the energy transition.
In parallel, the Ministry of Industry, Energy and Mining is preparing a new multi-party agreement to update the policy agreed upon in 2010, so the Bariloche Foundation was hired to prepare the diagnosis and strategic planning.
“It is expected that by the end of the year this document can be submitted for parliamentary discussion, as we did in 2010, to reach the agreements needed to define the new policy. We need to define goals regarding the predictability of increased generation capacity, strengthen and modernize distributed generation, as well as electromobility and energy storage,” Melani stated.
It also demands that photovoltaic energy be reinstated among the activities eligible for tax exemptions, considering that the technology enjoyed this treatment for several years, but a subsequent modification altered the incentive and, according to AUDER, negatively impacted the market.
Watch the full stream: https://www.youtube.com/watch?v=GZv1QVxJAUw&t=3082s
Distributed generation and batteries complete the debate
Uruguay has around 2000 distributed generation installations , equivalent to a capacity of between 50 and 60 MW, but the figure is still marginal within the national park.
The current system allows microgenerators of up to 150 kW connected at low voltage to inject their surplus energy and receive the same price applied to the electricity consumed.
AUDER is participating in a technical working group with the National Energy Directorate to redesign the model. The discussions include a transition to net billing, increased consumption limits, and the implementation of virtual metering.
“We know it needs modernization, and we also understand that more space should be given to distributed generation, increasing the limits for becoming a microgenerator—currently 150 kW—and enabling virtual metering. We believe we should follow the trend in Latin America toward net billing and see how to remunerate that surplus,” said the director of AUDER.
Energy storage is less mature, both in large-scale applications and behind the meter. Although batteries are permitted, regulations still do not facilitate sustainable commercial schemes.
“ While installing batteries behind the meter is permitted, it is not entirely conducive to generating profitable business models ,” the executive warns.
Current planning anticipates the introduction of this technology around 2029. However, falling costs could justify a review and bring forward its incorporation into the system.
“ With the drop in technology prices, those figures would have to be redone because it seems to me that it would make sense to introduce them sooner ,” Melani concludes.
The expansion forecasts thus reveal a gap between the expected pace of demand and the capacity actually contracted. The response will depend on upcoming decisions regarding PPAs, incentives, decentralized generation and storage, as well as the scope the government grants to private capital.