Uruguay’s Minister of Industry, Energy and Mining, Fernanda Cardona, has said the government plans to add 500 MW of new renewable capacity before the end of the current administration in February 2030, with an emphasis on photovoltaic energy.
Cardona announced the intention during the opening of the XII Latin American Renewable Energy Congress, organized by the Uruguayan Renewable Energy Association on July 28 and 29 at the Technological Laboratory of Uruguay in Montevideo, the country’s capital.
The 500 MW target includes four solar plants and the advancement of hybridization initiatives, although no concrete battery storage projects have yet been presented.
“In recent years, we have fallen behind in terms of adding new generation capacity,” Cardona stated. She explained that expanding renewable energy is a key component of the government’s energy policy and must prepare the system for projects that will demand a more competitive, reliable, and sustainable supply.
Two of the four plants have already been identified
Cardona indicated that the four solar power plants will be located in different departments across the country, with the first one being installed in Cerro Largo, northern Uruguay. This project is the Melo Photovoltaic Solar Park, previously presented by the state-owned electric company UTE, which began construction in April .
The Melo plant will have an installed capacity of 100 MWp and a nominal capacity of 75 MW at its point of connection. The project includes approximately 140,000 solar modules with trackers, an investment of over $75 million, and a 150 kV connection via the Melo B substation. UTE estimates that it will be able to supply the equivalent of approximately 65,000 homes.
The second project identified so far is a 30 MW photovoltaic plant that UTE initially planned to build in the department of Durazno but will be moved to the northwestern department of Río Negro following legal challenges and administrative issues that arose regarding the original site.
UTE indicated in May that the Río Negro project already had environmental permits and that it expected to begin contracting and construction in the short term. The company maintains its intention to later develop another solar power plant in Baygorria.
The 30 MW initiative had also been presented with a financing scheme open to small investors, with contributions starting at $200.
Minister Cardona did not provide details about the other two solar facilities planned, nor did she specify what proportion of the total 500 MW five-year project will correspond to photovoltaic generation.
Uruguay ended 2025 with 339 MW of installed and connected solar photovoltaic capacity, compared to 336 MW at the end of 2024, according to the most recent statistics from the International Renewable Energy Agency (IRENA).
The country has a high renewable energy share, averaging around 97% of electricity generation, led by hydro and wind power. Cardona stated that this does not eliminate the need to expand the energy mix with new projects.
“It would be a mistake to think the job is done,” she said, linking new projects to increased demand, the electrification of transportation and industrial development.
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