In 2020 the World Economic Forum recognized Uruguay as the most advanced American nation in the electric power sector. The country ranks first in South America and 11th globally, according to the Energy Transition Index 2020.
In recent years, Uruguay has completely transformed its energy matrix. Since 2010, USD 8 billion were invested in energy infrastructure and currently 98% of electricity is generated from renewable sources such as wind, biomass, photovoltaic, thermal and hydroelectric.
With sustained economic growth, social and political stability, forward-looking legislation and privileged natural resources, Uruguay is a world leader in renewable energy. It is also ideally located for solar, wind and hydroelectric power generation, with a landscape of peneplains and hundreds of miles of ocean and river coastline.
The most equitable country in Latin America, with the highest average income, achieved this transformation by making strong commitments to environmental stewardship and sustainable production. Using advanced legislation and incentive schemes, it encouraged significant private sector investments, together with the public sector.
The transformation of the electricity matrix that was carried out involved the incorporation of renewable generation that will minimize supply costs. At present, there are already structural surpluses that present great opportunities for their use. Electric mobility will be a fundamental component of this transformation and the initiatives being proposed are aimed at decarbonizing the global electricity supply matrix.