Two of the four planned solar facilities have been identified. The Melo Photovoltaic Solar Park in Cerro Largo department, northern Uruguay, entered construction in April with 100 MWp installed capacity and 75 MW nominal capacity at connection. UTE is investing over $75 million in approximately 140,000 solar modules with trackers, connected via 150 kV line through Melo B substation, with estimated supply equivalent for 65,000 homes. The second project is a 30 MW installation initially planned for Durazno department but relocated to Rio Negro department in northwestern Uruguay following legal challenges and administrative complications at the original site. UTE reported in May that Rio Negro already held environmental permits with contracting and construction expected short-term, while maintaining intentions for a subsequent solar plant at Baygorria. The 30 MW project was presented with a financing scheme accepting investor contributions starting at $200.
UTE President Andrea Cabrera confirmed the utility will launch tenders for private development and operation of solar parks, representing the first such opportunity since 2014 licitaciones. The approach includes two mechanisms: traditional competitive bidding where private investors develop infrastructure and manage parks, with the first tender targeted before December 2026 pending transmission capacity analysis and contract specifications; and hybridization projects using the raise model where private developers construct facilities that become UTE property, similar to the Fray Bentos photovoltaic plant. Hybridization enables co-location of solar installations at existing wind park sites using shared grid connection nodes.
AUDER President Diego Oroño welcomed the private sector opening, indicating informal discussions suggest approximately 200 MW could be tendered under 25-year power purchase agreements. Oroño advocated for multiple moderate-sized units rather than few large projects to enable Uruguayan company participation and financing while generating distributed economic activity. Uruguay ended 2025 with 339 MW of installed and connected solar photovoltaic capacity compared to 336 MW at end-2024, according to International Renewable Energy Agency statistics. The country maintains approximately 97 percent renewable electricity generation, led by hydropower and wind, with solar representing only 2 percent of the mix despite the matrix’s overall clean composition.
This article was curated and published as part of our South American energy market coverage.
