Kreimerman has also estimated that by 2015, more than 500 MW of wind capacity and 200 MW of biomass capacity will have been installed in his country, while 30% of waste will be used to generate energy. The minister said that during the next five years, public investment to diversify the energy mix in this South American country will reach $2.8 billion (€1.9 billion), an amount which is expected to be bolstered by private investment.
Uruguay’s Energy Action Plan for the period 2005-2030 establishes priority areas of work such as institutional, with the state playing a direct role, and a combined effort by leading public companies in the electricity and hydrocarbons sector, supported by a regulatory framework that encourages private investment.
On the supply side, the plan seeks to diversify energy sources and suppliers, reducing the share of fossil-fuel based energy sources. While on the demand side, efforts will be made to nurture a culture of energy efficiency in all sectors of activity. Finally, from a social perspective, adequate access to energy will be guaranteed for all citizens.
In this context, the primary goals for 2015 are to reach 50% renewables in the primary energy mix, including 25% of electricity from renewable energy sources and 30% from agro-industrial and solid municipal waste, and a 15% reduction in fossil fuel consumption in transportation. It is also planned that 100% of local energy equipment manufacturers and suppliers will be connected to an electricity supply by 2015.
Solar energy is another aspect the Uruguayan government is looking to promote and therefore a Solar Energy Law has already been enacted. In this regard, Uruguay is the first South American country to enable solar arrays to be grid connected.
Uruguay’s total electricity consumption in 2008 amounted to 7,114 GWh and is expected to increase by around 3.5% per annum over the next ten years. About 56% of generation capacity in Uruguay belongs to and is operated by UTE, the state-owned utility. The remaining capacity corresponds to the Salto Grande hydroelectric power plant (945 MW), to cogeneration, or to small private investments in generation in non-conventional renewables.
Currently, there are four private companies that generate electricity for their own consumption and sell their surplus to the grid: Botnia (biomass, 161 MW), Agroland (wind, 0.3 MW), Nuevo Manantial (wind, 10 MW) and Zenda (natural gas, 3.2 MW).
Hydro power top
Hydroelectric power is by far the largest renewable source in Uruguay and consists of the following plants: Terra (152 MW), Baygorria (108 MW), Constitucion (333 MW) and the bi-national Salto Grande, with a total capacity of 1,890 MW, half which correspond to Uruguay.
Uruguay has a favourable wind resource; unfortunately cost – estimated at around $50/MWh for large projects (50-100 MW) is still somewhat prohibitive. Despite this, the Government’s strategic plan shows Uruguay having 300 MW of installed wind capacity in 2011 and 500 MW in 2015. The National Environmental Directorate (DINAMA) has already received several requests for new wind projects and UTE had a very positive response to the bidding process launched in mid-2009. In August 2009, the government of Uruguay approved a Decree that allows UTE to put 150 MW of wind power out to tender, which is anticipated to bring in around $300 million of private investment.
The first wind farm in Uruguay, the 10-MW Nuevo Manantial project (in Rocha) started operations in October 2008, and a few months later, in January 2009, UTE’s 10-MW wind farm in Sierra de los Caracoles (Maldonado Department) was also commissioned.
Biomass offers attractive renewable sources such as rice husk, the volume of which could generate up to 20 MW at competitive prices; firewood has already been used as a substitute for fuel oil in the 1980s, and according to ESMAP, cellulose projects expect to generate up to 65 MW.
For additional information:
Uruguayan Ministry of Industry, Energy and Mining
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