The Garden of Learning

Geography

Which country has the highest share of renewable electricity in the Americas?

  • Uruguay
  • Costa Rica
  • Canada

The answer is Uruguay. Went from oil dependence to near-total renewables in a decade.

Uruguay, which now generates the overwhelming majority of its electricity from renewables and has run for long stretches on close to 100 per cent - and it did it in about a decade, from a position of importing fossil fuels and suffering blackouts.

How it was done is unusually well documented and unusually boring, which is the point. There was no technological breakthrough: the state set a long-term plan with cross-party agreement so it would survive changes of government, offered fixed twenty-year contracts to private wind developers so financing was cheap, and used the existing hydro dams as a battery - holding water back when the wind blows and releasing it when it does not. No subsidies of the kind that usually attract criticism, and electricity prices fell.

The country is a small one with good wind and existing hydro, so it is not a template anyone can copy directly. What travels is the financing structure and the political durability - the argument frequently made about it is that the hard part of an energy transition is rarely the engineering. Uruguay also exports surplus power to Argentina and Brazil, which is a reversal of a century of importing energy from both.