Published on : Dec 07, 2015
Report published by Guardian states that Uruguay now uses 95% of the renewable energy to generate electricity. The tiny country is operating its energy pool with an energy mix that includes biomass, hydropower, solar power, and turbines. Put together, the renewable energy totals to 55% of Uruguay’s energy mix, which is beyond the global average of just 12%.
This achievement is not only remarkable for the amount of contribution it has made, but also for the achieving the goal in the shortest possible time. This 25-year energy policy was approved by the government in 2008.
With this effort, the country has also proved that shifting to renewable energy does not translate to higher commodity prices for consumers. Ramón Méndez, country’s head of climate change policy stated that the inflation-adjusted electricity prices are actually way lower than what they were earlier.
Méndez points out that the success behind this true story is the partnership between Uruguay’s private and public companies. A report published by the International Renewable Energy Agency (IRENA) states, the national electric company in Uruguay is promoting the renewable energy through auctions to private companies.
The next important factor in achieving this success was the multipartisan support. IRENA stated that it has been supported by all political parties in Congress ever since 2010. He further credits this success to the investors who believed in clean energy project and that it would make a good business sense. The state facility of Uruguay promises fixed energy prices in the coming 20 years. This has also garnered support from foreign companies such as Enercon, a German wind power firm.