The 12th edition of the LATAM Renewables Congress closed with a concrete signal for Uruguay's energy market: the government is preparing new tenders for photovoltaic solar parks developed by private companies, after more than a decade without calls of this kind.
Organized by the Uruguayan Renewable Energy Association (AUDER), the meeting took place on July 28 and 29 at the LATU Auditorium in Montevideo, under the theme "The Age of Electricity." There, authorities, companies, specialists, and academic representatives discussed the challenges facing the country after completing the first transformation of its electricity grid.
The final format is still under analysis, but the Executive Branch is evaluating a fixed payment scheme for the installation and its associated services, with a subsequent transfer of the asset to UTE.
“The return of renewable PPAs is important because it has been 12 years since the last call for proposals of this kind in the country. The fact that this possibility is available again means that more projects can be developed, and faster,” said Diego Oroño , president of AUDER, in an interview with Energía Estratégica .
“This is a major development after more than 12 years. It sends a positive signal to the sector, something we needed. It opens the field to the private sector, so for AUDER, this is a very important announcement,” added Marcelo Mula , vice president of the association, in an interview with this publication, which was present at the Congress.
The decision is part of an expansion plan that anticipates at least 500 MW of photovoltaic capacity over the next five years . Over ten years, the National Energy Directorate estimates that the system will need to add around 1 GW of solar power , including projects already underway.
These additions will expand a solar base that is still limited compared to the technology's potential. Uruguay currently has around 300 MW of photovoltaic capacity , so the addition of approximately 1 GW over the next decade would represent a significant leap in the system's composition.
For AUDER, the main signal is not limited to the projected volume. The central change lies in the fact that private investment will once again participate in the construction of new capacity , after a period in which joint ventures concentrated the development and ownership of the assets.
That model allowed progress on public projects, but it reduced the commercial space available for independent producers. Therefore, the new calls for proposals would modify that dynamic and allow the capital required to expand the generating capacity to be distributed among more actors.
Planning models indicated that, following the additions made up to 2017, the country had a supply exceeding its immediate needs. However, the accumulated margin has decreased over the last decade , and the system must prepare for increased demand.
This natural growth is compounded by new consumption linked to the electrification of transportation, industry, data centers, and the eventual production of hydrogen and synthetic fuels. These projects will require new generation capacity and contracts capable of supporting capital-intensive investments.
For the executives, the announcements reinforced the character of the LATAM Renewables Congress as a space for collaboration between public and private actors.
“We reached our 12th edition and once again exceeded expectations. We are very happy with the people who attended and the topics discussed, but also because there were announcements from the government,” he highlighted.
This year's event brought together key figures from across the value chain and expanded its agenda compared to previous years. The panels addressed topics such as the electrification of the economy, charging infrastructure, distributed generation, energy storage, solar power, hydrogen, social license to operate, regional cooperation, and new technologies applied to the sector.
“The debate also included the potential for oil exploration in Uruguay and how the renewable energy sector should position itself in the face of that scenario,” Oroño said.
And although those interviewed mentioned the return of PPAs, the design UTE is analyzing could differ from the traditional contract based on purchasing each megawatt-hour produced. Therefore, understanding the agreement's terms and financial structure will be essential to determining the projects' bankability and the cost of capital.
“The bottleneck we have now is seeing the deadlines; UTE has anticipated that it will be this year, and we still need to see what the contract will be like,” Mula warns.
However, the expansion will be limited by the transmission infrastructure. The third 500 kV corridor, planned to connect the center with the south, will not be available in the short term. UTE will have to adapt the terms of its tenders to the existing capacity.
“Uruguay does not have infinite capacity on the lines, so we need to know which nodes will have capacity to put together the projects and develop them in a very short time in order to submit them to that tender,” the vice president of AUDER explained.
Congress plans the next energy agenda
The discussion about the new contracts was integrated into a broader agenda: how to transfer Uruguay's renewable leadership to sectors still dependent on fossil fuels .
After transforming its electricity grid and achieving a high share of clean energy sources, the country faces the challenge of electrifying transportation, industry, and other production processes. Energy storage, system flexibility, and additional generation will be necessary to sustain this transition.
The projected growth in solar power generation is primarily due to normal consumption trends. However, the installation of hydrogen projects or large data centers could substantially increase power requirements .
“We know that announcements are about to be made or some kind of agreement is about to be signed between the Uruguayan government and some developer, which has been delayed, as in the case of HIF or some other projects that are about to be launched,” commented representatives from AUDER.
“If there is demand for hydrogen or data centers, it should come hand in hand with the private generation sector, and UTE as a mediating agent that enables that type of operation,” they stated from their management.
Electric mobility represents another area of growth. According to the association's vice president, more electric cars than gasoline-powered vehicles are already being sold in the local market. The challenge now is to sustain this trend and expand the infrastructure.
The government announced a goal of 1,000 charging stations by 2027 , while UTE is promoting tenders to lease spaces for new charging points. Meanwhile, AUDER will participate next month in a public-private working group on infrastructure and incentives.
“We are the ones who bring the parties together. Our role as an association is to build bridges, put issues on the agenda, and we committed to helping in that process,” says Mula.
Based on this premise, the organization will represent companies involved in vehicles, charging systems, power generation, and technological development. Its work will also encompass the future review of subsidies and instruments for electromobility.
AUDER also plans to support the development of the 2050 energy policy . The National Energy Directorate expects to complete a diagnostic assessment and a first draft by the end of the year, on which the association seeks to contribute technical information and proposals from the private sector.
The LATAM Renewables Congress thus established a roadmap that goes beyond the return of contracts. The next phase will be marked by opening up to independent developers, expanding solar capacity, developing transmission infrastructure, hybridization, and addressing new demands.