Today, Uruguay is internationally regarded as an example of a successful energy transition. As recently as 2008, the country was in a severe energy crisis - now almost all electricity comes from renewable sources. A recent report from Tagesschau shows how this transformation has been achieved. tagesschau.de
In short: Uruguay's electricity mix today predominantly consists of hydropower, wind energy, biomass, and solar energy. Fossil fuels play a very minor role in electricity generation. At the same time, this example also shows: Green electricity does not automatically mean low electricity prices.
From a Country in Crisis to a Model for Others
In 2008, high energy prices and a severe drought led to supply shortages and power outages. In response, Uruguay began a fundamental transformation of its energy system. A key factor was long-term planning. The government and private companies invested billions in renewable energy, new regulations were introduced, and energy policy gained support across party lines
Today, electricity in Uruguay predominantly comes from hydropower and wind energy, supplemented by biomass and solar energy. The share of fossil fuels in electricity production is only about two percent on average over the long term.
It's not yet possible to do without oil
The largely renewable electricity generation does not mean that Uruguay is completely independent of fossil fuels. Oil is still imported, primarily for transportation and industry.
Therefore, the next phase of the energy transition is increasingly focusing on electric mobility. In Montevideo, for example, the share of electric buses is growing, and electric vehicles are gaining significant importance among new cars.
What does this mean for people moving to Uruguay?
For those considering relocating to Uruguay, long-term stability is particularly appealing. Today, the country is far less dependent on international oil and natural gas prices for its electricity supply than it was in the past.
At the same time, electricity costs for private households remain relatively high.
A renewable energy supply does not automatically mean low ancillary costs.
Conclusion
Uruguay shows how significantly a country's energy supply can change within a few years. Key factors were not only wind turbines and solar systems, but also long-term political planning and reliable framework conditions.
Anyone who wants to delve deeper into the history and the people behind this development can find the current report from Tagesschau here:
Tagesschau: “Uruguay – A Country Almost Independent of Oil and Gas”
Source and status: Tagesschau, October 20, 2026.