4 FAQs about Uruguay power grid energy storage transmission and distribution price

Did Uruguay build a power grid?

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.

How much electricity does Uruguay produce?

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.

Could Uruguay's energy model be replicated in countries with higher demand?

Other concerns focus on cost and scalability. While Uruguay's approach has delivered low prices, some energy analysts worry that replicating the model in countries with higher demand could require costly improvements to transmission infrastructure and significantly more storage.

Why is Uruguay a net importer and net exporter of electricity?

Incorporating new, local, and renewable sources into its electricity matrix transformed Uruguay from a net importer to a net exporter of electricity, positively impacting the country's energy independence and resolving historical supply issues.

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