The Energy Transition in Uruguay

Uruguay has emerged as a regional leader in renewable energy, achieving one of the cleanest power grids in the world. With over 90% of its electricity generated from renewables, primarily wind, solar, hydropower, and biomass, Uruguay's energy transition is often held up as a model of strategic planning, stable governance, and effective public-private coordination. While the country remains reliant on petroleum and natural gas for transport and industrial use, its electricity sector is already aligned with long-term decarbonisation goals. In contrast to its leadership in clean energy, Uruguay’s role in the global critical minerals supply chain is limited. Gold is its only notable mineral of strategic relevance, while industrial minerals such as bentonite, feldspar, talc, and crude raw steel serve mainly domestic or regional markets. Despite the modest scale of its extractive sector, Uruguay’s broader sustainability agenda and technological infrastructure offer potential pathways to integrate into downstream value chains, such as green hydrogen production or low-carbon manufacturing. Uruguay’s foreign policy—rooted in multilateralism and democratic governance—aligns closely with its international partnerships. As a member of the United Nations, WTO, G77, IADB, and Mercosur, the country plays an active role in regional energy dialogue and sustainable development initiatives. Its energy transition is less about catching up and more about consolidating gains, ensuring resilience, managing energy storage, and preparing its economy for a future shaped by climate commitments and technological innovation. In this context, Uruguay’s energy and resource strategy reflects not scale, but credibility, a country leveraging stability, renewables, and regional diplomacy to punch above its weight in the global energy conversation.