Uruguay Relocates 30 Million Dollar Solar Park from Durazno to Río Negro After Local Government Blocks Project

The government announced on March 23 the development of a photovoltaic plant near Baygorria, a town created during construction of the hydroelectric dam on the Río Negro. The project featured an innovative financing structure allowing small investors to participate with a minimum investment of 200 dollars, a model promoted by Presidential Secretary Alejandro Sánchez. Investment Minister Fernanda Cardona presented the initiative as part of UTE’s expansion plan.

Durazno Intendente Felipe Algorta, a Nationalist Party member and former UTE director, blocked the project on April 10 by approving a Local Territorial Planning and Sustainable Development Plan that suspended authorizations for new productive uses in the designated zone. Algorta argued the plant’s location on the lakeside would eliminate tourism development potential for Baygorria, a settlement that only gained legal recognition as a town two years ago and currently exists in a state of abandonment. The local government proposed relocating the solar park approximately 550 meters away to another UTE-owned property.

Both Cardona and UTE sources rejected the alternative site due to the presence of native forest, making it legally inviable. Following the impasse, Cardona announced on April 22 that the administration would proceed with the same project and financing scheme in Río Negro department to maintain UTE’s expansion timeline. The decision drew criticism from the MPP movement, which characterized Algorta’s actions as obstructionist opposition. UTE subsequently suspended the original tender, while Durazno’s government filed an appeal with the Administrative Litigation Tribunal.

Algorta maintained his position centered on Baygorria’s long-term development potential, arguing the intendencia seeks to replicate the successful revitalization of Palmar town in Soriano department, another hydroelectric settlement. The intendente expressed willingness to assume responsibility for Baygorria’s development, claiming UTE lacks a comprehensive plan for the town. After initial diplomatic approaches failed, Orsi requested Algorta present a concrete alternative proposal for the area’s development. The relocation to Río Negro received support from that department’s Frente Amplio intendente Guillermo Levratto, though Algorta disputed claims that Durazno would lose employment opportunities, noting current dam renovation work employs few local residents.