Uruguay has opened bidding to build its third 500 kV transmission corridor, a project of approximately 263 kilometers that aims to unlock new renewable capacity and strengthen the country's electrical infrastructure.
The planned investment exceeds USD 300 million and the new infrastructure includes a 500 kV double-circuit line between Chamberlain, Cardal and Pando , the construction of a new 500 kV Pando substation with 500/150 kV transformation, and expansions in the existing Chamberlain and Cardal substations.
The project was structured as a turnkey project and will be awarded through a single public tender divided into three independent items: 500 kV lines, new Pando substation and expansions in Chamberlain and Cardal.
Bids will be opened on January 25, 2027. According to the tender specifications, the contract must come into effect on November 15 of that year , while UTE moves forward with securing financing from the Inter-American Development Bank and the European Investment Bank.
The main objective is to increase transport capacity to support the growth in demand and allow the connection of new generation, mainly solar and wind power .
UTE maintains that the current 150 kV and 500 kV corridors have already reached their capacity limit and that there is a "real physical limitation" to incorporating large industrial demands at certain nodes.
The new electric highway was also designed to accommodate the arrival of data centers, hydrogen plants, and other electricity-intensive projects .
According to the company's estimates, the absence of the third corridor would also have a direct impact on renewable expansion: the energy deficit from these sources could reach 3151 GWh in 2035 if the new infrastructure is not built.
The project thus appears as a central piece to prevent transmission from becoming the next bottleneck in Uruguay's energy transition.
More grid for a new solar expansion
The reinforcement of the transmission system also comes at a time when the Uruguayan government and UTE are preparing new calls for proposals to incorporate solar generation , with the participation of private developers and a minimum goal of 500 MW of photovoltaic capacity during the five-year period .
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The decision responds to the expected growth in demand, the advance of electric mobility, the arrival of new industrial investments and the accumulated delay in the incorporation of capacity.
“We have set ourselves an ambitious goal for this five-year period, which is to expand renewable energy generation by at least 500 MW using photovoltaics. It is a strategic necessity for the country,” Fernanda Cardona, Minister of Industry, Energy and Mining, stated in July.
Part of that expansion will be channeled through new calls for proposals from the private sector. UTE is currently working on the tender specifications, the remuneration mechanism, the services that the projects will have to provide, and the location of the plants.
The scheme under analysis contemplates that the successful bidder will build the power plant, receive compensation for the installation and its associated services, and subsequently transfer the asset to the public company .
This model would represent a change from the most recent photovoltaic expansion, in which investments were concentrated in UTE, which retains ownership of the assets and contracts third parties for engineering, equipment supply and construction under the EPC modality.
The state-owned company had proposed years ago to incorporate new capacity from 2026 through blocks of 100 MW annually until 2030. However, since that announcement, it has only moved forward with the EPC tender corresponding to one of those blocks.
Among the public projects underway is Punta del Tigre B , financed through a USD 27 million bond issuance. The project documentation identifies a capacity of 25 MW, while UTE indicates it will reach 28 MW installed.
The Melo photovoltaic park is also progressing, which will have 75 MWp, nearly 140,000 panels and an investment of over USD 75 million , becoming the largest solar installation in the country.
In that scenario, the third 500 kV corridor takes on a broader function than simply reinforcing the grid: it will have to create space for a renewable expansion that Uruguay has already begun to prepare and which, if the official objectives are met, will add at least 500 MW of additional solar power over the next few years .
The schedule anticipates that the Cardal-Pando circuit will be completed in 36 months and that all lines will be finished in 60 months. The new Pando substation will have a total construction time of 42 months, as will the Chamberlain expansion, while the works in Cardal should be completed in 36 months.