The installation will connect to the national grid through a new 150 kV line at the Melo B substation, allowing centralized monitoring and dispatch control. UTE initiated project development in 2023 with site selection and grid capacity reservation in Cerro Largo department, advancing through permitting stages before finalizing the contractor agreement in late 2025. UTE President Andrea Cabrera characterized the project as fundamental to energy sovereignty, reducing exposure to volatile international crude oil prices that still influence significant portions of Uruguay’s energy supply.
The Melo park follows a 25 MW solar facility recently operational at Punta del Tigre in San José department and represents the second major photovoltaic addition as UTE accelerates deployment of non-conventional renewable generation. Energy Minister Fernanda Cardona confirmed two additional solar plants will be announced before the end of 2026, including a previously disclosed 75 MW facility also planned for Cerro Largo near existing transmission infrastructure. The ministerial statement indicates UTE is targeting photovoltaic capacity expansion to balance an electricity matrix currently dominated by hydroelectric and wind generation, with solar representing the remaining technology gap in achieving near-total renewable electricity supply.
UTE’s planning reflects ongoing demand growth for electricity as the utility pursues grid extensions to reach approximately 500 remaining unconnected households from an initial 4,600 identified in rural electrification programs. The utility has positioned low-carbon generation expansion as essential for industrial competitiveness and as enabling infrastructure for future hydrogen production initiatives coordinated with the Industry, Energy and Mining Ministry.
This article was curated and published as part of our South American energy market coverage.
