Uruguay’s Wind Development Program Attracted Private Investment to Transform the Power Sector

Uruguay transitioned its power sector by implementing the Uruguay Wind Energy Program in 2007, which combined a $1 million Global Environment Facility grant with $6 million in national funding. The program utilized reverse-auctions, feed-in tariffs, and workforce training to reduce reliance on oil imports, which had previously comprised 30%-40% of the power mix during drought years. Consequently, wind energy now generates approximately 40% of the country's electricity, with generation near 5,000 gigawatt hours. The government is now applying similar strategies to solar power and exploring offshore wind for green hydrogen production to reach carbon neutrality by 2050.

• The Uruguay Wind Energy Program, launched in 2007 with $7 million in combined funding from the Global Environment Facility and the national budget, utilized regulatory reforms such as a competitive reverse-auction system for large-scale projects and feed-in tariffs for small-scale projects to catalyze private investment.
• Wind energy development exceeded government expectations, reaching approximately 5,000 gigawatt hours of generation and accounting for about 40% of Uruguay's electricity.
• To manage the energy transition, the government collaborated with labor unions to handle the closure of power plants through early retirement and workforce training in renewable industries.

APA

World Resources Institute (2024). Uruguay’s Wind Development Program Attracted Private Investment to Transform the Power Sector. https://www.wri.org/update/uruguay-net-zero-sectoral-policy-wind-development-private-investment

Chicago

World Resources Institute. Uruguay’s Wind Development Program Attracted Private Investment to Transform the Power Sector. 2024. https://www.wri.org/update/uruguay-net-zero-sectoral-policy-wind-development-private-investment.

Wikipedia

{{cite report |author=World Resources Institute |title=Uruguay’s Wind Development Program Attracted Private Investment to Transform the Power Sector |date=22 August 2024 |url=https://www.wri.org/update/uruguay-net-zero-sectoral-policy-wind-development-private-investment |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitute2024uruguays, author = {{World Resources Institute}}, title = {{Uruguay’s Wind Development Program Attracted Private Investment to Transform the Power Sector}}, institution = {World Resources Institute}, year = {2024}, month = aug, url = {https://www.wri.org/update/uruguay-net-zero-sectoral-policy-wind-development-private-investment}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }