The state-owned power company Usinas y Trasmisiones Eléctricas (UTE) formed in 1912. First efforts of rural electrification already started in the 1930s. In 1932, the José Batlle y Ordóñez power station located at the Montevideo port was inaugurated, replacing an older power station on the same site. The first large hydroelectric power station was completed in 1945 in Rincón del Bonete. Before, power supply in Montevideo was done by a thermal power plant José Batlle y Ordóñez.
[PDF Version]
Once a net importer of energy, Uruguay now exports its surplus energy to neighbouring Brazil and Argentina. In less than two decades, Uruguay broke free of its dependence on oil imports and carbon emitting power generation, transitioning to renewable energy that is owned by the state but with infrastructure paid for by private investment.
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.
Uruguay did what most nations still call impossible: it built a power grid that runs almost entirely on renewables—at half the cost of fossil fuels. The physicist who led that transformation says the same playbook could work anywhere—if governments have the courage to change the rules.
The results speak for themselves. Today, Uruguay produces nearly 99% of its electricity from renewable sources, with only a small fraction—roughly 1%–3%—coming from flexible thermal plants, such as those powered by natural gas. They are used only when hydroelectric power cannot fully cover periods when wind and solar energy are low.