WSHPDR_2013_Final_Report-updated_version

2.3.9 Uruguay
Yan Huang, International Center on Small Hydro Power
Key facts:
Population 3,316,328 1
Area 177,000 km 2
Climate Temperate. Summer: January to March
(17-28°C). Winter: June to September
(6-14°C)
Topography Smooth terrain; average elevation 116 m
(highest point: Cerro Catedral, 514 m).
Undulating plains, suitable for agricultural
and/or livestock production.
Abundance of rivers, high discharge 1
Rain
pattern
Average annual precipitation: 950 mm in
the south, 1,250 mm in the north
Electricity sector overview
Uruguay is highly dependent on hydropower for its
electricity generation. According to the National
Directorate for Energy and Nuclear Technology
(DNETN), Uruguay had 1,538 MW of installed
hydropower generating capacity in 2010, which
represents almost 65 per cent of the installed
capacity of the country (figure 1). According to the
regulatory framework of Uruguay, the potential for
large hydropower has already been fully developed.
Wind
Diesel
Others
Imports
Steam
Gas
Hydropower
0.74%
3.47%
3.71%
1.40%
3.90%
15.46%
64.51%
0% 20% 40% 60% 80%
Figure 1 Electricity generation in Uruguay
Source: Administracion Nacional de Usinas y
Trasmisiones Eléctricas 2
In 2011, 9,806 GWh of electricity, of which 4.8 per
cent was imported from Argentina and Brazil was
consumed in Uruguay. 2
Four large hydropower stations are operating in
Uruguay: Salto Grande with a total installed capacity of
1,850 MW, (945 MW supplied to Uruguay and 945
MW to Argentina), Palmar with 330 MW, Gabriel Terra
with 152 MW and Baygorria with 108 MW.
Small hydropower sector overview and potential
Currently there are no small hydropower plants in
Uruguay (figure 2). There are 1,100 water reservoirs
in Uruguay used for irrigation -mainly linked to the
rice agro industrial sector- with strong potential for
hydropower generation. A local study conducted by
the Uruguayan State University of Engineering
identified 50 sites among the existing reservoirs with
individual potential below 10 MW, concluding that
the national potential for small hydropower is at
least 101 MW. 3
SHP installed
capacity
SHP potential
0 MW
101 MW
0 20 40 60 80 100 120
Figure 2 Small hydropower capacities in Uruguay
Source: Scarone 3
Note: More potential could be identified.
Renewable energy policy
Moreover, in the Uruguayan 2005-2030 National
Energy Policy, the Government has set the goal of 50
per cent native renewable sources in its primary
energy matrix by 2015. Among other measures to
accomplish this, non-traditional renewable energy
sources (wind, biomass residues and micro-hydraulic
generation) will contribute 15 per cent of the total
electric generation.
In 2008 the Government issued a clean energy target
of 200 MW of biomass and 300 MW of wind to be
added by 2015. This is again being encouraged by
reverse auctions sponsored by the Government. Other
incentives for clean energy consists of tax based
instruments such as tax relief. 4
Legislation on small hydropower
In Uruguay, the electricity generation is open only with
certain technical conditions. Every generator can
connect with the public electric grid. But all the
private generation companies must sign contracts with
the electricity utility Administración Nacional de
Usinas y Trasmisiones Eléctricas (UTE), which is the
only distribution and transmission operator in
Uruguay.
In 2007 the Government of Uruguay offered 20 MW
to be added to the grid from small hydropower, but
no private investors applied. The Government still
plans to develop small hydropower to promote rural
development and to reach a 100 per cent
electrification rate, which is planned for 2015.
Article 47 of the Uruguayan Constitution explains the
utilization of water and defines the right to water and
sanitation as a fundamental right for human beings. In
September 2009, Law No. 18610 (Law for National
Policy on Water) was approved and the Article 6
designates the Ministry of Residence, Territorial and
Environmental Order to propose a national water
policy.
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