Uruguay solar capacity expansion: 200 MW of new projects by 2025
Uruguay is set to significantly expand its renewable energy infrastructure, with plans to add 200 megawatts (MW) of solar capacity to its existing 250 MW by 2025. This initiative is part of a broader strategy to enhance the country’s energy transition, which has been heavily reliant on hydropower and wind energy. You can read more about this expansion in Uruguay solar energy Expansion: 200 MW Capacity by 2025 for Success.
New solar projects boosting Uruguay solar capacity
Uruguay’s state-owned utility, UTE, has announced plans for two new solar parks in the northwestern region of the country. These projects will be developed through public tenders, with the first expected to be awarded by the end of this year. The second tender is slated for 2025, with each project contributing 100 MW of capacity. For further details, refer to Uruguay Solar News Archives.
These solar parks will be strategically located near Salto Grande, a hydroelectric complex on the Uruguay River that generates power for both Uruguay and Argentina. The region also features a 50 MW wind farm co-owned by UTE and the private company SEG Halls Energy. Discover more about Uruguay’s solar power future in Uruguay solar power 2025: Discover 200 MW Auction for Renewable Energy.
Financial model and investment in Uruguay solar capacity
The solar projects will be financed through a public-private partnership model. This approach allows the private partner to benefit from electricity sales for 20 years, after which the infrastructure will be transferred to UTE. The total investment for the two projects is estimated at $200 million.
In addition to the solar parks, UTE is planning to install a 30 MW battery energy storage system (BESS) near the Salto Grande complex. This BESS will be financed entirely by UTE and will help manage energy supply fluctuations during droughts that affect hydropower generation.
Uruguay’s energy mix is currently dominated by hydropower, which accounts for 50% of the country’s electricity supply. Wind energy contributes 40%, while biomass and solar make up 8% and 2%, respectively.
Despite its relatively low share in the energy mix, solar power has grown significantly since the first photovoltaic (PV) project was commissioned in 2015. Uruguay now boasts approximately 250 MW of installed solar capacity. Learn more about the planned solar auction in Uruguay solar auction 2025: Discover 200 MW Solar Power Plans.
Long-term energy goals to increase Uruguay solar capacity
In addition to the solar and storage projects, UTE has announced plans to develop a 200 MW wind farm. This project will also be financed through a public-private partnership and is scheduled to be tendered in 2025.
UTE is also investing approximately $100 million to upgrade its transmission infrastructure. This includes the construction of a new transmission line from Tacuarembó to Salto, which will support the new solar and wind projects and facilitate energy exports to Brazil.
Uruguay’s ambitious renewable energy plans are part of its broader commitment to sustainability and energy independence. The country has been recognized as a global leader in renewable energy, with wind and solar farms already supplying 40% of its electricity needs. As the new projects come online, Uruguay will further solidify its position as a pioneer in the transition to clean energy. Read more about Uruguay’s powerful future in Uruguay solar energy Expansion: 200 MW by 2025 for a Powerful Future.
