The Uruguay Energy Agenda 2050: What Is It About, and what are its Objectives?

by | Feb 28, 2025 | FDI Latin America

The Ministry of Industry, Energy, and Mining (MIEM) and the National Directorate of Energy (DNE) recently presented the Uruguay Energy Agenda 2050, a forward-thinking strategic plan designed to foster discussion about the country’s future energy landscape in the upcoming administrations. This comprehensive roadmap outlines key challenges and ideas surrounding Uruguay’s energy future, focusing on innovation, sustainability, and competitiveness.

Overview of the Uruguay Energy Agenda 2050

In one of the current administration’s final activities, the Ministry of Industry, Energy, and Mining (MIEM) and the National Directorate of Energy (DNE) introduced the Uruguay Energy Agenda 2050. Elisa Facio, the head of the ministry, emphasized that the project outlines the key ideas and challenges that will shape Uruguay’s energy landscape. One of the primary themes is the projected increase in energy demand, prompting the need for comprehensive planning and forward-looking policies.

Facio also underscored the importance of implementing state policies that position Uruguay as a key global player in the energy market, particularly as an exporter of green hydrogen. Green hydrogen, a form of energy produced using renewable resources, is a key factor in Uruguay’s continued development as a global leader in renewable energy.

Green Hydrogen as a Key Element

A focal point of the Uruguay Energy Agenda 2050 is the development of green hydrogen. Facio highlighted Uruguay’s impressive renewable energy matrix, with over 90% of the country’s energy coming from renewable sources. This unique advantage allows the government to produce green hydrogen derivatives, such as e-fuels, which can be used in the same engines as traditional fossil fuels. The potential to transition from importing synthetic fuels to producing clean, renewable energy domestically is one of the key benefits outlined in the agenda.

Facio described the green hydrogen sector as an “emerging industry that can transform the economy, generate jobs, and position the country as an exporter of renewable energy.” She further noted that the Uruguay Energy Agenda 2050 includes a dedicated focus on green hydrogen as part of a larger strategy to attract investment, develop infrastructure, and foster international cooperation to ensure the country’s competitive edge in the renewable energy sector.

Strategic Vision: Ensuring Uruguay’s Global Energy Leadership

In his remarks during the event, Walter Verri, the Deputy Minister of MIEM, discussed the importance of treating the Uruguay Energy Agenda 2050 as a long-term, state-driven policy framework. He emphasized that the agenda’s vision was part of a more extensive process, including the second energy transition that has already placed Uruguay at the forefront of global hydrogen economies.

The document was introduced just days before the transition of government power on March 1st, 2025. The timing underscores the intention to ensure the Uruguay Energy Agenda is a foundational component for future administrations. Facio and Verri emphasized that the agenda will serve as a strategic tool for shaping the future of the country’s energy policy and ensuring the continuation of Uruguay’s leadership in the global energy transition.

A Pillar for Institutional Stability and Economic Development

Christian Nieves, the National Director of Energy, provided an overview of the institutional stability Uruguay has enjoyed over the years, which has been essential in driving the country’s energy transformation forward. He noted that the Uruguay Energy Agenda 2050 aims to consolidate and expand these achievements, positioning the country as a global reference point for energy stability and sustainable development.

Nieves also highlighted that Uruguay’s international recognition for its role in the energy transition puts the country in a strong position to commit to an “innovative and efficient” energy future. The four main pillars of the agenda underscore this vision and foster investment that will support the country’s continued economic growth.

Four Key Pillars of the Uruguay Energy Agenda 2050

The Uruguay Energy Agenda 2050 is built on four key pillars guiding the country’s energy development over the coming decades. These pillars—competitiveness and efficiency, reliability and security, sustainability, and universal access and inclusion—are designed to create a balanced and future-proof energy policy for Uruguay.

Competitiveness and Efficiency: The first pillar focuses on ensuring that energy prices remain competitive with the international market. MIEM’s objective is to create an environment that encourages private investment, modernizes energy regulations, and strengthens the institutional framework of the energy sector. These efforts will help Uruguay continue to be a competitive player in the global energy market.

Reliability and Security: The second pillar focuses on guaranteeing the reliability and security of Uruguay’s energy supply. This involves diversifying energy sources and establishing secure international markets to ensure the country’s energy infrastructure is resilient to global changes. A key element of this strategy is investing in technology and energy storage systems, which will enhance Uruguay’s energy security and ensure a stable power supply despite changing global energy dynamics.

Sustainability: Uruguay has long been recognized as a leader in renewable energy. The third pillar of the Uruguay Energy Agenda 2050 continues this legacy by focusing on sustainability. The goal is to reduce emissions by reinforcing Uruguay’s decarbonized energy matrix. This will promote the electrification of transportation and industrial sectors, significantly reducing the country’s economy’s carbon footprint.

Universal Access and Inclusion: The final pillar of the agenda addresses the social aspect of energy policy. It emphasizes ensuring universal access to affordable energy for all citizens, especially those in remote or economically vulnerable areas. A key component of this objective involves redesigning subsidies and integrating energy policy with other public policies. Additionally, the agenda advocates for including women and underrepresented populations in energy-related activities, fostering greater equality and participation across all sectors of society.

Progress and Completed Projects

The launch of the Uruguay Energy Agenda 2050 also provided an opportunity to reflect on the successful energy projects implemented during the past years. MIEM showcased several initiatives that have positively impacted energy efficiency and sustainability throughout the country.

One of the most notable projects was the Micro, Small, and Medium Enterprises (Mipymes) support program. With an investment of over $20 million, this program benefited more than 180 companies, helping them implement energy-efficient practices. The Efficient Localities program also supported 139 energy-efficiency plans nationwide, with a total investment of $148 million.

Another significant initiative was the Subite program, which supported Uruguay’s transition to electric mobility. This initiative included an investment of more than $94 million to encourage the purchase of electric vehicles, aligning with the country’s long-term sustainability goals.

Through these efforts, Uruguay continues to advance its energy agenda and enhance the nation’s competitiveness, environmental sustainability, and social inclusivity, paving the way for a prosperous and innovative energy future.

Conclusion

The Uruguay Energy Agenda 2050 is a bold and comprehensive vision for the future of the country’s energy sector. Uruguay is positioning itself as a leader in the global energy transition by focusing on green hydrogen, energy efficiency, sustainability, and universal access. The agenda addresses the country’s current energy needs and lays the groundwork for a future that embraces innovation, inclusivity, and global competitiveness.