1. Energy transition in Uruguay
Montevideo, 30 y 31 de enero de 2018

2. Uruguay before transition

3. Uruguay in context
(Source: World Bank)
Uruguay
LAC
World

4. Uruguay energy resources
Uruguay has:
- NO oil
- NO natural gas
- NO coal
- High hydro capacity, but almost NO room for new large power plants. 4 4 4 4

5. Energy as a developing barrier
Restrictive path
Weak institutions
(DNE-MIEM)
Low capacities for prospective
Passive rol of energy policy
Uncertainty
Energy as a developing barrier 5 5 5 5

6. Before renewable transition:
Electricity mix (GWh)
Hydro
GO/FO
Imports
Autoproducers
Climate dependence:
Huge variations of hydropower:
gap covered by oil derivates and imports

7. Dependence: Share of oil imports in trade balance

8. Primary global energy mix (2001-2006)
63 % IMPORTED
Source: DNE - MIEM

9. ENERGY POLICY. URUGUAY - 2030

10. Virtuous path
Strong institutions
(DNE-MIEM)
Agreement involving Government and political opposition
Investment in reneawable energies and grid systems.
Energy as an opportunity (energy access and local content) 10 10 10 10

11. Long term Energy Policy (2030)
2008: Council of Ministers
2010: State Policy
Special committe including all political parties in Congress.
Rol de los actores
Matriz energética
Demanda
Social

12. Energy Policy – Short term goals (2015)
Supply
50% renewables in primary energy mix
25% ERNC in power sector
Demand
6% reduction of global energy
consumption*
15% reduction of oil in transport *
*compared to tendency
Social
100% electrification

13. Energy supply and Renewable energies

14. WHY RENEWABLES? RENEWABLE SELECTION: NO SUBSIDIES
To keep low carbon emissions
To avoid fossil fuel imports
To drop and stabilize energy prices
To build local capacities
To improve energy independence
RENEWABLE SELECTION:
Those that allow a social use, and are sustainable from an
environmental and economic perspective.
Today:
Bio energy (power, heat, biofuels)
Solar Thermal (water heaters)
Wind Power
Solar PV NO
SUBSIDIES 14

15. WIND POWER

16. - Mandatory local content
Wind Energy
2009
- Wind map
- First 10 MW farm
Tender process:
- Mandatory local content
- 20 Years PPA
- Priority dispatch
2017 MW
- Local content: 30%
Starting point: 0 MW in 2007 16

17. Wind Energy price evolution
Power allocated (MW)
Price (USD/MWh)

18. Wind Energy installed power (MW)

19. SOLAR ENERGY

20. Solar Thermal - Law 18.585 “Solar Thermal energy law”
Solar Plan, Solar Thermal promotion, in residential sector 20 20

21. FV - Microgeneration kW
Portezuelo

22. Solar PV Decree - introduction of Solar energy PV in Uruguay. May 2013
Three ranges:
Tender from 0,5 MW to 1 MW
Tender from 1 MW to 5 MW
FIT from 5 MW to 50 MW
Mandatory local content
Average price in 2017:
90 USD/MWh 22 22

23. 20 % local content Solar PV 2017: 238 MW
2010:
100 kW
2017:
238 MW
20 % local content
Solar PV Plant 50 MW – Salto, Uruguay

24. BIO ENERGY

25. BIOMASS 437 MW installed Raw materials: forestry residues,
rice husks, bagasse, black liquor.
50% - 60% local content

26. Biomass plants operating
437 MW

27. BIOFUELS Biofuels Law (2007) Biofuels (1st generation) + Food
+ Power (co-generation)
+ Feeds
TOTAL BIOFUELS (m3)
2015:
Goal: E5/B5
Production (2016):
E9/B6

28. MICROGENERATION & SELF CONSUMPTION

29. MICROGENERATION
Since 2010 Uruguay enable grid-connected renewable microgeneration.
Net metering contract: injections must not exceed consumption in a year time basis.
Maximum power 150 kW
Low tension connection 29

30. SELF CONSUMPTION Decree 114/2014
Prosumers (generates and consumes electricity)
Not allowed to inject electricity to the grid (only self consumption)
Customer remains regulated 30

31. IMPACT OF THE ENERGY POLICY

32. Primary global energy mix 2017
59% RENOVABLE
55 % (2015)

33. Electricity sources mix

34. Power mix
More than 97 % Renewable
96 % (2016)

35. Power Generation (History)

36. Distributed Power Generation

37. Medium Supply Demand Cost
Parameter:
Rain probabilities
73 US$/MWh
46 US$/MWh

38. Variability of supply demand cost
Parameter:
Rain probabilities
70 US$/MWh
25 US$/MWh

39. IMPACT OF THESE POLICIES IN REDUCING EMISSIONS

40. Emission reduction in Energy Sector

41. Thank you for your attention!… nicolas.castroman@miem.gub.uy

42. Energy transition in Uruguay
Montevideo, 30 y 31 de enero de 2018