Energy Transition in Uruguay: The Most Promising Case in Latin America

This chapter examines the factors driving Uruguay’s recent adoption of renewable energy sources and explores the balance between public and private ownership within its energy landscape. It looks into the decentralization strategies promoted by new energy technologies and assesses the resulting transformation in the country’s development model. A central focus is placed on understanding how Uruguay envisions its energy transition, drawing insights from secondary literature and interviews. Key findings reveal that Uruguay has significantly reshaped its energy matrix, with renewables accounting for a very significant amount since 2017, reducing carbon emissions and bolstering energy sovereignty. The role of the public sector, primarily through the National Administration of Power Plants and Electrical Transmission (UTE), remains predominant. Wind and solar energy have thrived, attracting private investments, while fiscal incentives and feed-in tariffs further incentivize renewable energy projects. Uruguay’s model demonstrates that a just energy transition is attainable, emphasizing public-social capacities and a commitment to sustainability.