The September result follows a recent period when Uruguay briefly achieved 100% renewable electricity generation, with wind as the leading source and 27% of total output exported to Argentina. The country’s cross-border interconnections with Argentina and Brazil enable bilateral energy flows that help absorb surplus renewable output during periods of high generation and support domestic supply when conditions shift. The Latin American and Caribbean Energy Organization ranked Uruguay second in the region for renewable electricity penetration, with 97% of generation from clean sources, trailing only Paraguay and sitting 30 percentage points above the regional average.
The latest National Energy Balance from the Ministry of Industry, Energy and Mining showed final electricity consumption rose 2.5% in 2025, with hydropower at 46%, wind at 34%, biomass at 14%, and solar at 4% of the annual matrix. The shift in monthly output shares reflects the seasonal variability inherent in hydro and wind resources, with hydropower’s September dominance linked to favorable hydrological conditions that allowed higher reservoir releases and reduced reliance on thermal backup.
The near-total renewable share in September signals stable operating costs and reduced exposure to imported fuel price volatility, particularly relevant given global energy market tensions tied to Middle East conflicts and elevated gas prices in Europe. However, Uruguay’s ability to sustain high renewable penetration depends on ongoing investment in grid infrastructure and storage capacity to manage output variability. Regional data indicate that Latin America and the Caribbean cumulatively wasted 53,000 gigawatt-hours of renewable generation in 2024 due to transmission constraints and inadequate storage, equivalent to 3.2% of total production across Brazil, Chile, Uruguay, and Costa Rica. Uruguay’s interconnection strategy partially mitigates this risk by enabling real-time export and import flows, but the country’s limited energy storage deployment remains a structural constraint as electrification of transport and industry drives demand growth in coming years.
This article was curated and published as part of our South American energy market coverage.


