The Spanish-Uruguayan consortium Teyma-Prodiel secured the engineering, procurement, and construction contract in September 2025, with an additional two-year operations and maintenance mandate. The same consortium previously developed engineering for UTE’s 30 MWp Punta del Tigre facility, commissioned in November 2024 in San José department. Construction will employ between 100 and 150 workers through the 2028 completion timeline.
Technical specifications include approximately 140,000 solar panels mounted on tracking structures that optimize tilt angles according to solar position throughout the day. Generated direct current will convert to alternating current for medium voltage elevation before injection into the National Interconnected System through a new 150 kV connection at Melo B substation. Remote monitoring from this substation will enable real-time plant performance control and grid response management.
The facility will supply approximately 65,000 customers upon commissioning. UTE initiated project development in 2023 with site selection and grid capacity reservation in Cerro Largo. Beyond Melo, UTE operates three solar facilities: a 500 kW installation in Salto, 1 MW at Talas del Maciel, and the Punta del Tigre park. Private generators contribute over 240 MW to the national grid under long-term power purchase agreements.
Uruguay currently maintains approximately 330 MW of installed solar capacity, representing roughly three percent of 2024 electricity generation. The country generated 98 percent of its 13,040 GWh electricity production from renewable sources in 2025, with hydroelectric contributing 46 percent, wind 34 percent, biomass 14 percent, and solar four percent. Uruguay exported eight percent of generated electricity in 2025.
Energy Minister Cardona confirmed two additional solar parks will be announced before December 2026, supplementing Melo and the Baygorria installation. She emphasized that renewable expansion provides sovereignty against volatile fossil fuel markets. UTE President Andrea Cabrera noted the project builds on a 2010 multiparty agreement that positioned state enterprises to lead Uruguay’s energy matrix transformation.
This article was curated and published as part of our South American energy market coverage.
