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In a world where nations strive to achieve sustainable energy solutions, Uruguay stands out as a remarkable example, having achieved an impressive 98% renewable energy grid. Known for its rich cultural heritage and soccer prowess, this small South American country has made significant strides in energy independence, which many larger nations still aspire to reach.
A few decades ago, frequent blackouts were commonplace in Uruguay, as recounted by Luis Prats, a journalist with El País. “At that time, more than 50 years ago, electricity came from two small dams and from generation in a thermal plant,” he explained, adding that droughts often led to energy shortages.
Back in 2006, fossil fuels accounted for a third of Uruguay’s energy generation, according to the World Resources Institute. Fast forward to today, and fossil fuels contribute to just 2% of the nation’s electricity, with wind power playing a pivotal role at 38% of the energy mix.
Transformative Energy Strategies
By 2008, Uruguay faced an energy crisis as its economy grew, leading to energy rationing and rising electricity prices. Ramón Méndez Galain, appointed as the national director of energy by President Tabaré Vázquez, saw this as an opportunity to pivot towards renewable energy. Méndez Galain, a physicist, envisioned harnessing Uruguay’s abundant wind resources across its sparsely populated lands to fuel the country’s future.
Uruguay’s energy transformation was set in motion by a multiparty agreement in 2010, which recognized renewable energy as a state policy. Walter Verri, undersecretary of industry, energy, and mining, emphasized that this policy included “a long-term perspective” and considered “social, ethical, and cultural dimensions.”
Wind Energy and Agricultural Harmony
Initially, farmers like Pablo Capurro harbored concerns about wind turbines affecting agricultural productivity. However, after consulting engineers and visiting Brazilian wind farms, they were reassured. “I feel very satisfied for having introduced a wind energy park on a livestock farm,” Capurro stated, noting no adverse effects on his cattle.
Economics of Wind Power
Méndez Galain devised a unique financing model inspired by Brazilian public-private partnerships but with a twist. Private companies would bear the cost of installing and maintaining wind turbines, while the state energy company, UTE, would purchase the generated energy at a fixed rate over 20 years. “Investors need assurance that their investment will be repaid,” Méndez Galain explained, emphasizing the importance of a clear timeline.
Political consensus across Uruguay’s parties facilitated auctions starting in 2009, drawing international bids to supply affordable renewable energy. By 2011, Uruguay had exceeded its initial targets, drastically increasing its renewable capacity by over 40%. As a result, electricity prices fell, and more than 700 wind turbines now dot the Uruguayan landscape.
For residents like Alda Novell of Montevideo, the energy transition has led to “substantially” reduced electricity bills. Prats noted the visible change brought by modern windmills in rural areas, highlighting the reduced need for fossil fuels.
This transition has not only brought energy independence but also fostered new career opportunities and training in the renewable energy sector. As many countries grapple with climate pledges, Uruguay’s journey serves as a testament to the achievability of a green transition.
This article was translated by Climate Cardinals.
Original Story at yaleclimateconnections.org