Uruguay Energy Information

Uruguay Energy Research

- Uruguay's Energy & Climate Policy Framework: Uruguay's energy policy aims to diversify its mix, reduce oil and hydro reliance, and boost efficiency. It has achieved 53% renewables in primary consumption and targets green hydrogen production. Nuclear is banned, and energy efficiency measures are in place. The country aims for carbon neutrality by 2050.

- Uruguay's Energy Companies: UTE dominates Uruguay's electricity market, supplying 63% of the country's power, including hydro and wind. ANCAP leads oil and gas, managing exploration, refining, and distribution. Both entities control transmission and distribution networks.

- Uruguay's Energy Supply & Demand: In 2024, Uruguay's energy mix was dominated by renewables (99%), with biomass leading at 53%. Total energy consumption rose to 6.7 Mtoe, driven by increased biomass and primary electricity. Hydropower and wind were key electricity sources, while oil's share declined. Uruguay exports electricity and imports crude oil, with GHG emissions stable around 40 MtCO₂eq.

- Uruguay's Energy Use & Price by Sector: Since 2023, final energy consumption has surged by 11% annually, driven by industry (50% of demand), with biomass as the primary source. Energy prices remain high in South America, with regulated costs for electricity and gas. Transport and residential sectors show moderate growth, with oil and electricity as dominant fuels.

- Uruguay's Issues & Prospects: Uruguay is advancing its energy sector with green hydrogen projects, offshore hydrocarbon exploration, and hydropower modernisation. The country plans to expand wind, solar, and gas power capacity while exploring domestic gas reserves to reduce import dependence. A USD 10M pilot project aims to decarbonise heavy transport, and a USD 6B green hydrogen plant is under development.

Uruguay Total Energy Production & Consumption

Total energy consumption rose to 6.7 Mtoe in 2024 (+7%), after a 11% jump in 2023 and a stability in 2022; it rose by 2.7%/year on average from 2010 to 2021. The average consumption per capita stood at 2 toe in 2024, up from 1.5 toe in 2015 (+29%).

Source: Uruguay energy report

Interactive Chart Uruguay Total Energy Production & Consumption

Source: Global Energy & CO₂ data

Uruguay Oil Production & Consumption

Uruguay doesn't produce any crude oil, although some exploration rounds have been launched off the country's coasts since 2009.

The country import crude oil to produce petroleum products from its only refinery in Teja, that has a distillation capacity of 50 kb/d. Uruguay import crude oil from mainly from Nigeria and Argentina, also from Azerbaijan, Kazakhstan and the United States.

Graph: Crude Oil Production & Consumption

Source: Uruguay energy report

Interactive Chart Uruguay Crude Oil Production & Consumption

Source: Global Energy & CO₂ data

Interactive Chart Uruguay Refined Oil Products Production & Consumption

Source: Global Energy & CO₂ data

Uruguay Natural Gas Production & Consumption

In 2008, an important offshore gas reserve was discovered approximately 100 km off Punta del Este. Exploration started in 2010, but no gas has yet been produced since then.

The country imports small quantities of gas from Argentina (between 50 mcm and 100 mcm depending on the year), through two gas pipes: the first one entered into service in 1998 (northern gas pipeline, capacity of 700 000 m³/d and length of 20 km) and the second one in 2002, Gasoducto Cruz del Sur (capacity of 6 mcm/d).

Graph: Gas Production & Consumption

Source: Uruguay energy report

Interactive Chart Uruguay Gas Production & Consumption

Source: Global Energy & CO₂ data

Uruguay Renewable in % Electricity Production

The target set in the National Energy Policy 2005-2030 to reach a 50% share of renewables in total primary consumption in 2015 (compared with 35% in 2005) was achieved in 2014 with renewables accounting for 53% of the primary consumption; the additional goal of 1.2 GW of wind capacity was reached in 2016.

Foreign investments in renewables are made through the Investment, Export, and Country Brand Agency.

Source: Uruguay energy report

Interactive Chart Uruguay Share of Renewables in Electricity Production (incl hydro)

Source: Global Energy & CO₂ data

Uruguay GHG emissions and CO₂ emissions

In its third NDC (NDC3, December 2024), the country has postponed its unconditional cap on energy-related emissions of 9.3 MtCO2 to 2035, from 2030 in the second NDC (2022) and an additional effort of 0.96 MtCO2 conditional on aid. As well, it extends to 2035 the 2030 cap on CH4 emissions (at 818 Mt) and N2O emissions (32 Mt).

In its first NDC (2017), Uruguay targeted a 24% reduction in CO2 energy-related emissions by 2025 compared to 1990 levels (29% with international aid). The NDC also included targets for other GHG.

Source: Uruguay energy report

Interactive Chart Uruguay CO₂ emissions

Source: Global Energy & CO₂ data