In the EU, there is an interest to transform the energy system by ending its dependence on fossil fuels and achieving Europe’s climate neutrality goal by 2050. As a result, in May 2022, the REPowerEU Plan was presented to achieve these objectives through energy saving, diversification of energy supply, and an intensified deployment of renewable energies. This green transformation will strengthen economic growth, security, and climate action for Europe and its partners.
Uruguay is at the forefront in the use of renewable energy sources. The transformation of its energy matrix involves strong European private participation through the installation of wind and photovoltaic farms or the generation of biomass in pulp mills. In addition, European technology is present in most of the renewable energy projects in the country.
Since 2021, Uruguay started the second stage of the energy transition aiming at the development of a Green Hydrogen economy, the consolidation of a Smart Grid that allows higher efficiency, and the search for new technologies for energy storage.
The EU is an important trading partner for Uruguay and has established itself as the first foreign investor in the country with 40% of Foreign Direct Investment and an FDI stock of more than € 28 bn in 2020. The largest private investments in the country in recent years have been European and have had a great impact: wood pulp, port services, logistics, forestry, telecommunications, finance, tourism, and, as mentioned, renewable energy.
