Use of renewable energy lowers electricity costs in Uruguay

Montevideo, July 13 (Prensa Latina) Investments in renewable energy have reduced the Demand Supply Cost (DSC) of electricity in Uruguay by 50%, according to a report by the consulting firm Exante, prepared at the request of the Uruguayan Association of Private Electricity Generators.

July 13, 2025
11:00

The unit supply cost fell in real terms from $64 to $44 per MWh during recent years, a period marked by a massive influx of wind, solar, and biomass sources.

The drop in the DSC had a direct impact on the financial results of the state-owned electricity company, UTE, whose operating margin fell from representing four percent of revenues in 2007-2011 to 17% in 2015-2024.

At the same time, residential rates fell 14% on average in real terms between the periods compared.

Those for large and medium-sized consumers fell eight and 13%, respectively, according to the source.

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