Energy Sovereignty: How Uruguay Decarbonized 98% of its Grid in Two Decades

Uruguay has achieved nearly total energy decarbonization, generating 98% of its electricity from renewables. Discover the framework of energy sovereignty that made it possible.

By: AXL Media

Published: Apr 6, 2026, 11:27 AM EDT

Source: https://earth.org/

The Catalyst for Change: From Crisis to Consensus

At the start of the 21st century, Uruguay’s energy security was at the mercy of the climate. Relying on a mix of hydroelectric power and imported oil, the country suffered through severe droughts in 1999, 2004, 2006, and 2008. When river levels dropped, the state was forced to burn expensive oil to meet demand, with cost overruns reaching up to 2% of the national GDP.

The turning point came in 2005 when the government appointed Ramón Mendéz Galain, a particle physicist, as the national director of energy. Mendéz proposed a radical shift: a 25-year strategic vision to diversify the energy mix using wind, solar, and biomass, entirely bypassing nuclear power.

Uruguay’s Current Energy Mix

Today, Uruguay generates up to 98% of its electricity from renewable sources.

Wind Power: Rapidly expanded to provide 40% of the country’s capacity in less than ten years.