Uruguay Sustains High Renewable Share with Growing Unidad Reajustable Amid Global Renewable Capacity Surge

In 2025, Uruguay’s electricity generation delivered 13,040 GWh to its national interconnection system, marking a 10% decline from the previous year. Hydropower remained the dominant source at 46%, followed closely by wind energy at 34%, with biomass and solar contributing 14% and 4%, respectively. Fossil fuel generation was reduced to a minimal 2%, underscoring Uruguay’s commitment to decarbonization. Notably, about 8% of the electricity, primarily hydropower, was exported regionally. The carbon emission factor for the system stood at 11.2 tCO2 per GWh, though higher emissions in early 2025 were linked to increased fossil fuel use in January and February. The Ministry of Industry, Energy and Mining’s Direction Nacional de Energía published these preliminary results, highlighting the ongoing efforts towards a sustainable energy mix.

Globally, renewable energy capacity grew by 692 GW in 2025, reaching a total of 5,149 GW, a 15.5% increase. Solar photovoltaic projects accounted for nearly 75% of this growth with 511 GW added, while wind energy contributed 159 GW. Asia led this expansion, installing over 74% of the new capacity, while Latin America, including Uruguay, continues advancing despite regional disparities. The dominance of renewables enhances energy security amid fossil fuel price volatility and geopolitical tensions.

Domestically, Uruguay’s Unidad Reajustable recorded an upward trend in early 2026, with April’s value reaching 1,914.42 pesos, a 3.6% annual increase. The UR, indexed to average salary variations, influences rent and contract adjustments, reflecting broader economic conditions amidst energy sector progress. The growing renewable portfolio complements this economic stability, poised to support Uruguay’s continued transition.

Looking ahead, Uruguay’s integration of battery energy storage systems (BESS) and hybrid renewable projects will be critical to managing variability and maximizing grid efficiency. This aligns with global trends emphasizing storage solutions to complement solar and wind expansion, bolstering Uruguay’s status as a renewable energy exemplar in the region.