Uruguay Energy Storage Power Franchise

Once a net importer of energy, Uruguay now exports its surplus energy to neighbouring Brazil and Argentina. In less than two decades, Uruguay broke free of its dependence on oil imports and carbon emitting power generation, transitioning to renewable energy that is owned by the state but with infrastructure paid for by private investment.

In the same way Uruguay's abundance of wind and rivers proved fortuitous for energy sovereignty, so was the government's oversight of the electric grid.

Ramón Mendéz Galain believes so. Uruguay's former national director of energy in the Ministry of Industry, Energy and Mining, who was the impetus for the country's shift away from dirty fuels, has been promoting the country's success as a repeatable framework of energy sovereignty for developing countries.

A relatively small nation spanning 175,000 square kilometres (76,568 square miles) with a population of 3.4 million – 96% of whom live in urban centres – Uruguay has no significant fossil fuel reserves. Fortuitously, its geography makes it ideal for utilizing powerful rivers and uninterrupted grasslands for wind energy.

When severe droughts struck in 1999, 2004, 2006, and again in 2008, the country was forced to import ever larger quantities of oil. In 2005, oil made up 55% of Uruguay's total energy supply, and residents still experienced blackouts and energy rationing. “In dry years…cost overruns could be as high as $1 billion.

Avoiding nuclear power entirely, Uruguay first embraced wind turbines as a source of cheap, reliable power; providing 40% of the country's capacity in less than a decade.