Written by: Ahmed Abdel Salam
The national electricity company in Uruguay is preparing to launch new energy contracts for three private investment solar parks, with a total generating capacity of 99 megawatts. This step aims to enhance renewable energy generation capabilities to meet the growing demand for electricity and support the country's energy transition plans and carbon emission reduction efforts, as part of a broader strategy to expand the reliance on clean energy sources.
Locations of New Projects and Connection Conditions
The company has identified three main regions for implementing the new projects: North Tacuarembó, Florida, and the eastern region of the country, in order to distribute the generating stations geographically and avoid concentration in a single area, while taking into account the electricity grid's capacity to absorb the produced energy. The designated points in North Tacuarembó include the Chupilla Peralta and Chamberlain stations, while the Florida region includes the Pintado, Colonia Sanchez, and Florida-Durazno sites, and the eastern region includes Carapé, San Carlos, La Plata, and Rocha. The distance of the connection point for each station must not exceed five kilometers from the chosen node, with companies allowed to submit bids for one or more of the available regions.
Pricing Mechanisms and Contract Award Criteria
The company will purchase all quantities of energy produced by these stations according to a financial compensation system consisting of two phases; during the first fifteen years, the price offered by the generator will be paid, while during the last five years, forty percent of that price will be paid. Award criteria are based primarily on the offered price, in addition to granting additional points for the local component of the investment, such as relying on national labor and goods. This expansion in the solar energy sector comes in response to forecasts of increased electricity demand as a result of the expansion in electric transport and industry, and in commitment to climate goals and efforts to reduce greenhouse gases.
