The Solution to Intermittency Renewable sources—hydroelectric power, wind, biomass, and solar energy—now cover up to 98% of Uruguay’s energy needs in a normal year and still over 90% in a very dry one, according to Méndez.
While only about two percent of Uruguay’s total energy production comes from solar sources currently, the potential for solar power in Uruguay is encouraging given the country receives an average of 1,700 KW per square meter of sunlight each year.
Credit: FRV Future Renewable Vision. After hydropower and wind, biomass is another important energy source, accounting for 15-20% of the electricity Uruguay produces. Wood pulp plants, for example, are now burning organic waste to produce energy for the grid, turning what was an environmental liability into an energy asset.
Throughout Uruguay, there is a strong emphasis on local energy production, particularly solar energy in rural areas, focusing on rural schools and churches far from the grid, as well as hospitals, hotels, sports clubs, and new public buildings.
Ramón Mendéz Galain believes so. Uruguay’s former national director of energy in the Ministry of Industry, Energy and Mining, who was the impetus for the country’s shift away from dirty fuels, has been promoting the country’s success as a repeatable framework of energy sovereignty for developing countries.
The framework for fiscal incentives for renewables in Uruguay was provided by laws established as early as 1998 and significant income tax reductions for renewable electricity generation, renewable energy service providers and manufacturing of renewable energy equipment.