Algorta proposed relocating the solar array 500 meters to alternative UTE-owned land characterized as scrubland with no tourism potential. The intendente maintained this relocation would allow coexistence of both solar generation and a planned tourism pole modeled on Soriano’s Palmar development, where UTE transferred management of a hydroelectric town to municipal authorities. Presidential sources confirmed the project will proceed in Río Negro with the same business model enabling individual investment from 200 dollars, designed to democratize participation in renewable infrastructure financing. Industry Minister Fernanda Cardona expressed surprise at Durazno’s intervention, stating uncertainty about the specific tourism project justifying the objection while emphasizing UTE cannot delay solar capacity additions.
The dispute centers on land governance in former hydroelectric company towns. Baygorria was constructed by UTE for dam workers and remained under utility administration until recent legal recognition as a municipality. A 2022 agreement between UTE and rural housing agency MEVIR contemplated progressive transfer of territorial functions, creating ambiguity over development authority. Algorta argued UTE lacks territorial development capacity and should cede administration as occurred in Palmar. The Durazno government applied its 2024 territorial ordinance imposing a moratorium on photovoltaic permits and requiring institutional coordination on essential services historically provided by UTE.
National opposition leader Álvaro Delgado characterized the relocation as government caprice and revenge politics, accusing inconsistent messaging between Cardona and Orsi. The episode occurred as Orsi announced enhanced climate preparedness coordination between the Congreso de Intendentes and the Sistema Nacional de Emergencias following severe storms that killed one person in Salto with 130 kilometer-per-hour winds. Orsi committed ministerial presence in municipal forums while pursuing infrastructure financing alternatives for rural road networks amid expanding local government competencies.
This article was curated and published as part of our South American energy market coverage.
