Opposition Partido Nacional leader Álvaro Delgado warned in early August that Uruguay risks losing the investment, pointing to Minister of Industry Fernanda Cardona as responsible for stalled negotiations. Delgado claimed HIF Global considers Paraguay as an alternative, where power costs around $25 per megawatt-hour compared to Chile’s $32 and Brazil’s $36. HIF’s local executives have confirmed these regional price comparisons but the company has not publicly announced any decision to abandon Uruguay or relocate operations.
The UTE workers’ union AUTE challenged the proposed pricing in July, arguing that supplying HIF at $40 per megawatt-hour could financially harm the state utility when UTE pays private generators an average $80 per megawatt-hour. The union questioned who would absorb higher costs when renewable generation proves insufficient and UTE must source more expensive electricity. Frente Amplio president Fernando Pereira countered opposition criticism by questioning whether the state should accept any price demanded, framing the debate as whether Uruguay would “give away” its energy.
The $5.385 billion investment would include a 1,162-megawatt solar farm, a 1,138-megawatt wind farm, and industrial facilities producing e-methanol for European and Asian markets, with first exports targeted for 2029. HIF Global estimates 1,400 construction jobs and 300 permanent positions in Paysandú, Uruguay’s most deindustrialized department with unemployment near 15 percent. The company and government signed a new memorandum of understanding in December 2025 establishing a roadmap toward final investment decision. Uruguay’s environment ministry cleared the site as suitable, allowing HIF to proceed with comprehensive environmental impact studies. Industry Minister Cardona stated the government continues working to ensure project viability, though no definitive contract exists as of late July.
This article was curated and published as part of our South American energy market coverage.
