MercoPress. South Atlantic News Agency

Electricity shortage looms over Uruguay

Lack of sufficient rainfall and lesser regional solidarity is forcing Uruguay to save electricity and elaborate an emergency alternative that could include blackouts, according to the latest report from the country's government owned energy company UTE.

The contingency plan's immediate goal is to convince home users to reduce electricity consumption by 5% plus 10% savings in government offices and dependencies. A private company has been contracted to organize a massive media savings campaign among home consumers who absorb 50% of the country's total electricity production.

Argentina recently cut electricity provision to Uruguay from 360 MWh to 150 MWh following shortages in its own territory and Brazil, which is also suffering the consequences of a prolonged drought, adopted a similar policy reducing the surplus to 70 MWh.

Uruguay's neighbours' decision has forced Uruguay to turn on a fossil fueled plant at a daily cost of a million US dollars.

In the meantime Uruguay is praying for rainfall to help fill the several dams currently out of service or working at a minimum because of insufficient water supply. The country has three main dams which jointly generate 500 MWh and a fourth shared with Argentina, which currently has only one out of fourteen turbines in production.

With no rainfall forthcoming the three dams in the heart of the country have an estimated 50 days production.

If the shortfall peaks 20% of production in the coming weeks, Uruguay will then be forced to impose rotational three to four hours blackouts in Montevideo and the main cities. The last time Uruguay was forced to adopt such drastic measures was in 1989.

However, by the end of July the first of two fossil fueled 100 MWh plants is forecasted to begin production with a second the following month. With normal rainfall Uruguay's electricity generation, and a small surplus, can be fully achieved with the existent hydroelectric infrastructure.

Uruguay's Industry Minister Jorge Lepra said that the energy situation "with no rainfall is quite delicate until the end of August, early September".

But even if the rainfall situation improves in the coming weeks, for Uruguay a net importer of oil and natural gas, the 2006 electricity bill will be steep.