Uruguay’s Solar Decade: UTE’s Big Plan and EV Boom Explained
Uruguay · Energy
Key Facts
- Solar push: UTE targets 500–600 MW new solar this quinquenio (by 2030).
- Private tender: ~150–200 MW solar call to private developers, first since 2014.
- Grid shift: Move from wind and hydro toward solar; installed solar is now ~300-350 MW.
- EV sales: More than 40% of new 0km vehicle sales were fully electric in July 2026.
- Fleet reality: EVs are still only ~1-2% of a ~2.5-million-vehicle fleet.
- Regional leader: Highest EV share in Latin America, vs 10.7% regional average.
- World Cup 2030: Government to support works; possible FIFA tax exemptions ahead.
State power utility UTE plans 500–600 MW of new solar and opens private tenders for the first time in over a decade. New EV sales top 40% of the market, but fleet penetration stays under 2%. Here’s the full picture.
Uruguay is about to open a new decade of solar investment, according to El Observador. The state-owned power utility UTE plans to add between 500 and 600 MW of new solar generation over the current five-year government period, which runs through February 2030.
The Solar Decade: UTE’s Big Plan
UTE plans to add between 500 and 600 megawatts of new solar capacity during the current quinquenio, which ends in February 2030. This is part of a strategy set by the Ministry of Industry, Energy and Mining (MIEM), and it’s the first major solar push in a decade.
A public tender is planned before the end of 2026 for roughly 150-200 MW of new solar, opening the door to private developers for the first time since 2014. Industry Minister Fernanda Cardona said new solar plants would be developed by private firms but ultimately owned by UTE.
The plan is detailed in a 10-year “master plan” covering both generation and transmission, with historic investment concentrated in the next 4-5 years. El Observador’s headline sums it up: “Uruguay opens the door to a decade of solar investment.”
This strategic shift toward solar comes after years of focusing on wind and hydro. UTE’s president, Andrea Cabrera, has framed it as part of a longer-term push that also builds out wind and gas-cycle capacity over the coming decade.
Cabrera has set a first milestone of reaching 500 MW of solar within five years, framing it as part of the largest investment cycle in years. For a small country of roughly 3.4 million people, that is an ambitious bet on cheap, home-grown power.
How the Grid Is Shifting
Uruguay’s electricity mix is changing. In the first half of 2025-2026, most electricity came from water and wind, but the future is solar.
Installed solar capacity is currently around 300-350 MW, and UTE expects to add up to 600 MW during this quinquenio—which would more than double what is in place today. This is a deliberate diversification away from hydro, which is vulnerable to droughts, and wind, which can be intermittent.
The broader master plan also layers in more wind and gas-cycle capacity to keep the grid balanced and resilient. The government hasn’t disclosed specific investment amounts for the solar plans, but the scale is clear.
With Uruguay already at ~90% renewables, this solar push is about reliability and meeting future demand rather than greening a dirty grid. The shift also reduces dependence on imported fossil fuels, which is a key strategic goal for the country.
The EV Boom: What the 40% Really Means
Uruguay has become Latin America’s electric vehicle leader. In July 2026, more than 40% of new (0km) vehicle sales were fully electric, outselling gasoline cars.
The shift is sharper in some segments—among new SUVs and passenger cars, 52% of sales were electric, rising to 57% for passenger cars alone, per the auto trade association ACAU. Ambito reports Uruguay surpassed 40% EV share in the second quarter of 2026, versus a regional average of 10.7%.
But here’s the precision you need: the 40%-plus figure is the share of NEW vehicle sales, not the total fleet. EVs are still only about 1-2% of Uruguay’s roughly 2.5-million-vehicle fleet.
So while the transition is accelerating rapidly—in 2025 about one-fifth of new cars were electric—overall adoption is still early. In 2025, Uruguay sold around 71,000 vehicles, with about 14,400 fully electric, a 20% share.
In H1 2026, EV sales hit 12,426 units. Monthly BEV share was 41.2% in May 2026—so the trend is consistent and shows no signs of slowing down.
The gap with the rest of the region is striking, and it keeps widening. Cheap renewable electricity and government incentives have made switching to electric an easy call for many buyers.
World Cup 2030: Government Support and FIFA Exemptions
President Yamandu Orsi confirmed the state will “accompany” the 2030 World Cup works, and anticipated possible tax exemptions for FIFA. Uruguay hosts at least one match in the centenary tournament, with opening matches split among Uruguay, Argentina, and Paraguay.
Orsi said FIFA will ask for “some kind of exemption… these things always happen,” but gave no specifics. No specific Uruguayan law exists yet, but FIFA’s standard “Government Guarantee No. 3” typically requires broad tax exemptions for FIFA and its subsidiaries in host countries.
The government is working with the Uruguayan Football Association (AUF), the National Sports Secretariat, and the Montevideo city government. This support could mean significant infrastructure investment and potential fiscal impact—worth watching.
Why This Matters for Investors and Expats
For Latin American investors, Uruguay is proving to be a stable, forward-looking market. The solar tender represents the first private renewable opportunity since 2014—a clear signal that the government is opening up to private capital.
With a 10-year master plan, you have visibility into energy policy, which lowers regulatory risk. For expats, the EV boom translates into better charging infrastructure and more EV options as you settle in.
And the World Cup 2030 will bring a wave of development and tourism, potentially boosting property values and business opportunities. Uruguay’s renewable leadership and early EV adoption put it ahead of the regional curve.
Whether you’re looking at energy, autos, or infrastructure, this is a market worth your attention—and the solar decade is just beginning.
Frequently Asked Questions
What is UTE planning for solar energy?
UTE plans to add 500–600 MW of new solar capacity by 2030, with a public tender for 150–200 MW to private developers before end-2026. This is part of a 10-year master plan that also includes wind and gas capacity.
Why is Uruguay’s EV share over 40% but the fleet is under 2%?
The 40% refers to new vehicle sales in mid-2026, not the total fleet. Across Uruguay’s roughly 2.5 million cars, EVs are still only about 1-2% of what’s on the road.
What does the World Cup 2030 mean for taxes in Uruguay?
President Orsi confirmed government support for the World Cup works and anticipated tax exemptions for FIFA. FIFA typically requires broad tax exemptions via ’Government Guarantee No. 3’, but no specific law has been passed yet.
How does this solar plan affect my electricity bills as an expat?
More solar capacity should help stabilize the grid and potentially lower wholesale costs over time. Since UTE is state-owned, any benefits may eventually pass to consumers, but there’s no guarantee of immediate rate cuts.
Sources: El Observador: Uruguay opens the door to a decade of solar investment; El País: Industry Ministry and UTE announce call with private sector for solar projects; Ámbito: Uruguay surpasses 40% electric vehicle sales and consolidates as Latin American leader; Ámbito: World Cup 2030 – Orsi confirms state support and possible exemptions for FIFA; BNamericas: Uruguay sets out 1.6GW generation, 500kV transmission plan
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