As of 2024, Uruguay’s total installed solar panel capacity is approximately 418 MW.⁶

By 2025, it is expected that Uruguay’s Solar Market in Uruguay will grow by 900 MW as the country aims to further diversify its renewable energy mix and reduce reliance on fossil fuels.¹

Hydropower: Hydropower is one of the most cost-effective sources of electricity in Uruguay benefiting from the country’s abundant water resources. The cost is generally low due to established infrastructure and favorable natural conditions.

Wind Power: Wind energy is another major contributor to Uruguay’s electricity mix. The cost of wind power has decreased significantly over the years making it a competitive option. The average cost is around 40−60 $ USD MWh.

Solar Power: Solar energy is growing in Uruguay with costs continuing to decline. The average cost of solar power is approximately 50−70 $ USD MWh, depending on the scale and location of the projects.

Biomass: Biomass energy is also utilized in Uruguay particularly from agricultural and forestry residues. The cost of biomass energy varies but is generally in the range of 60−80 USD per MWh.

Natural Gas: Although Uruguay relies heavily on renewable energy, natural gas is used as a backup source. The cost of electricity from natural gas is higher, typically around 80−100 USDper MWh.

Coal: Coal is not a significant source of electricity in Uruguay due to the country’s focus on renewable energy. However, if used, the cost would be relatively high, around 100−120 USD per MWh.⁷

As of recent data, Uruguay’s electricity generation mix is composed of the following sources:⁶

Hydropower: 33 %

Wind Energy: 31 %

Biomass: 17 %

Solar Energy: 3 %

Fossil Fuels (Natural Gas and Oil): 1%

Coal: 14%

Uruguay has a highly reliable electricity grid with nearly 100% of the population having access to electricity. As a result, the average daily availability of electricity from the national grid in Uruguay is close to 24 hours per day.⁸

As of the latest available data, Uruguay has seen a growing number of residential solar panel installations driven by government incentives and a strong commitment to renewable energy. The country has installed several thousand residential solar systems contributing to its overall renewable energy capacity. However, specific data on the exact number of residential solar panel installations in Uruguay is not readily available.⁸

Installed:

The exact number of utility-scale solar farms in Uruguay is not explicitly stated. However, from the information available it is clear that Uruguay has several notable utility-scale solar projects such as La Jacinta Solar Farm (64 MW), Sky Solar Projects (82 MW), Enertrag’s Tambor Green Hydrogen Hub (350MW).⁹¹⁰¹¹

Projected:

An exact projected number of solar farms in Uruguay isn’t readily available, but some resources point to significant growth. Uruguay’s state-owned utility UTE plans to add 900 megawatts of solar power by 2025 through 18 solar photovoltaic modules by 2049.¹

The off-grid solar market in Uruguay is currently experiencing growth driven by the increasing demand for renewable energy solutions and government incentives. Although specific current and projected figures for Uruguay are not widely detailed, the general trend indicates a rising adoption of off-grid solar systems due to the benefits of clean energy and the need for energy access in remote areas.¹²

Current:

• Residential: Uruguay’s residential on-grid solar market is on the rise, driven by government incentives promoting solar investment, the country’s excellent sunshine levels (averaging 1,700 kWh per square meter annually) and a growing demand for alternative energy sources to meet rising residential energy needs.¹³
• Commercial: Despite a lack of specific data on the current size of Uruguay’s commercial on-grid solar market, the outlook is promising. The country’s booming overall solar sector, fueled by government incentives and abundant sunshine, is likely to benefit commercial applications as well.¹⁴

Projected:

• Residential: (not available)
• Commercial: (not available)

The average gross salary for an installer of solar energy systems in Uruguay is approximately 717 USD per month.¹⁵

As of 2024, the population of Uruguay is approximately 3,423 million people.¹⁶

Average Rent for Multi-Owned Commercial Buildings: Specific average rent data for multi-owned commercial buildings in Uruguay is not readily available. However, commercial real estate prices in Montevideo, the capital, range from USD 20 to USD 30 per square meter per month in prime locations.¹⁷

Electricity Price for Businesses: The electricity price for businesses in Uruguay as of September 2023 is approximately USD 0.119 per kWh​¹⁸

Water Cost for Industrial Use: The cost of water for industrial use in Uruguay varies based on usage and location, with significant industrial users typically negotiating rates with OSE, the national water utility.¹⁹

Worker Salary in the Solar Industry: The average salary for workers in the solar industry in Uruguay is not explicitly available, but general labor costs in the renewable energy sector range from USD 700 to USD 1,500 per month, depending on the role and level of expertise.²⁰

Rent for Office Space: Office rental prices in Montevideo vary, with prime office space renting for around USD 20 to USD 30 per square meter per month​.²¹

Insurance: The cost of business insurance in Uruguay can vary significantly depending on the type of business, the level of coverage required, and the specific risks associated with the industry. On average, businesses might expect to pay between $500 and $1,500 annually for basic coverage, which includes general liability and property insurance.²²

Here’s a summary of the energy infrastructure in Uruguay:²³²⁴

Electricity Generation:

• Uruguay’s total installed capacity is approximately 4.9 GW as of 2021.
• The country’s energy mix is predominantly renewable, comprising 31% wind, 33% hydropower, 17% biomass and waste, 3% solar PV, and 6% fossil fuels (mainly oil and natural gas).
• Uruguay has achieved a remarkable transition to renewable energy, with over 94% of its electricity coming from renewable sources in recent years.

Transmission & Distribution:

• Uruguay has a well-developed transmission and distribution network, managed by the state-owned company UTE (Administración Nacional de Usinas y Trasmisiones Eléctricas).
• The national grid covers most of the country, with ongoing projects to improve rural electrification.
• The transmission system operates at 500 kV, 150 kV, and 60 kV levels.
• Uruguay has interconnections with Argentina and Brazil, allowing for energy exchange in the region.

Energy Access:

• As of 2021, Uruguay has achieved nearly 100% electricity access for its population.
• Both urban and rural areas have high levels of electrification, with the government focusing on improving the quality and reliability of service in remote areas.

Solar Energy Market and Projections:

• Uruguay’s solar PV capacity has grown from virtually zero in 2013 to 248 MW in 2020.
• The government aims to increase solar PV capacity to 1 GW by 2025.
• Residential on-grid solar installations are growing, supported by net metering policies and decreasing technology costs.

Energy Exports:

• Uruguay has transitioned from being a net energy importer to a net exporter in recent years.
• The country exports excess electricity to neighboring Argentina and Brazil during periods of high renewable energy generation.
• Uruguay is exploring opportunities to become a regional hub for green hydrogen production and export in the future.”

Uruguay’s solar panel production and installation are governed by several key regulations aimed at promoting renewable energy and ensuring environmental sustainability. These include:

National Energy Policy 2005-2030: This policy outlines Uruguay’s commitment to increasing the share of renewable energy in its energy mix setting specific targets and providing a strategic framework for energy development.²⁵

Law No. 18.585 (2009): Known as the Renewable Energy Promotion Law this law provides incentives for renewable energy projects including tax benefits and subsidies to encourage investment in solar and other renewable energy sources.²⁶

Decree 173/010 (2010): This decree provides additional regulations to support the implementation of Law No. 18.585 detailing the specific incentives available for renewable energy projects including feed-in tariffs and net metering.²⁷

Decree 133/013 (2013): This decree aims to address the growing demand for electrical energy and the consequent need to incorporate electricity generation capacity into the national system, increase alternative forms of generation and promote relevant national technological development.²⁸

Decree 451/007: This decree mandates environmental impact assessments for all large-scale energy projects including solar installations to minimize their environmental footprint and ensure sustainable development.²⁹

These regulations collectively foster a supportive environment for the growth of the solar energy sector in Uruguay encouraging both domestic and foreign investments in renewable energy​.

In Uruguay, the government has taken several initiatives and made significant investments to promote solar panel production and the broader adoption of solar energy. Here are some key initiatives and investments:

200MW Tender Program (2013): The Government of Uruguay launched a 200MW tender program to attract private sector participation in the development of solar photovoltaic (PV) power plants. This initiative aimed to increase the share of renewable energy in Uruguay’s energy matrix.³⁰

Fiscal Incentives for PV Panel Makers: The Ministry of Industry, Energy and Mining (MIEM) and the Ministry of Economy and Finance have proposed the establishment of fiscal incentives for the production of solar modules in the country. These incentives are designed to spur the development of the local solar panel manufacturing industry.³¹

Investment Promotion Law: Uruguay’s Investment Promotion Law offers various incentives for investing in the manufacturing, implementation and utilization of solar energy. This law provides benefits such as tax exemptions and other financial incentives to encourage investment in renewable energy projects.³²

Public-Private Partnerships: The government has facilitated public-private partnerships to finance and develop large-scale solar projects. For example, Atlas Renewable Energy secured $$114.4 million in long-term financing for its El Naranjal and Del Litoral solar PV projects in Salto, Uruguay. These projects have a combined installed capacity of 75.8 MWp.³³

Renewable Energy Innovation Fund (REIF): The REIF is an instrument that supports the implementation of Uruguay’s energy policy by providing financial support for renewable energy projects. This fund aims to promote innovation and the development of new renewable energy technologies including solar energy.³⁴

Installed:

La Jacinta Solar Park: Capacity: 64 MW, Location: Salto Department Details: One of the largest solar parks in Uruguay operational since 2015.³⁵

Alto Cielo Solar Park: Capacity: 17 MW, Location: Salto Department, Details: Operational since 2017, contributing significantly to the national grid.³⁶

Natelu Solar Park: Capacity: 50 MW, Location: Salto Department, Details: Operational since 2018, part of Uruguay’s push towards renewable energy.³⁷

Projected:

Pampa Solar Park: Capacity: 100 MW, Location: Tacuarembó Department, Details: Expected to be operational by 2025, this project aims to further increase Uruguay’s renewable energy capacity.³⁸

Durazno Solar Park: Capacity: 75 MW, Location: Durazno Department, Details: Scheduled for completion by 2024, this project is part of Uruguay’s ongoing renewable energy initiatives.³⁹

Cerro Largo Solar Park: Capacity: 50 MW, Location: Cerro Largo Department, Details: Planned to be operational by 2026, this project will contribute to the national grid.⁴⁰

UTE (Administración Nacional de Usinas y Trasmisiones Eléctricas):

UTE is the state-owned utility company in Uruguay, responsible for the generation, transmission and distribution of electricity. It has been a key player in the country’s renewable energy transition developing and operating several solar power projects including both large-scale solar farms and smaller distributed solar installations.⁴¹

Fotowatio Renewable Ventures (FRV):

FRV is a global developer of renewable energy projects including solar and wind power. In Uruguay FRV has developed significant solar projects such as the La Jacinta Solar Park one of the largest in the country contributing to the national renewable energy capacity.⁴²

Atlas Renewable Energy:

Atlas Renewable Energy is a leading renewable energy company in Latin America focusing on the development, construction and operation of renewable energy projects. The company has been involved in the development of solar projects in Uruguay supporting the country’s renewable energy goals.⁴³

Solarpack:

Solarpack is a multinational company specializing in the development, construction and operation of large-scale solar photovoltaic (PV) plants. Active in Uruguay, Solarpack has developed solar projects that help increase the country’s renewable energy capacity.⁴⁴

Enel Green Power:

Enel Green Power is a global leader in the development and management of energy generation from renewable sources. The company has been involved in various renewable energy projects in Uruguay including solar power plants that contribute to the national grid.⁴⁵

Abengoa:

Abengoa is an international company that applies innovative technology solutions for sustainability in the infrastructure, energy and water sectors. In Uruguay, Abengoa has been involved in the construction and operation of solar power projects supporting the country’s renewable energy initiatives.⁴⁶