Uruguay is among the Latin-American and Caribbean countries with the highest power costs according to a paper from the Inter-American Development Bank, IDB, Bloomberg and New Energy Finance. This is extensive both for residential consumers and for manufacturing and large consumers.
The report shows that homes pay an average of 26 US cents per kilowatt/hour, while large consumers on average 208 dollars per Megawatt/hour. This means that homes have the highest rate in South America and the fourth highest among 26 countries surveyed in the region and the Caribbean.
The document points out that in this context of high prices, large consumers could feel attracted to bilateral power contracts with renewable energy commercial projects, while small consumers could take advantage of other measurement policies to find solutions at a small scale.
Uruguay ranked 6 out of 26 countries surveyed in the region and improved four points over last year when it comes to Climatescope 2013 on new frontiers for energy investments with low emissions of carbon in Latam and the Caribbean.
However the document also points out that despite the fact Uruguay is one of the smallest countries in South America it has 304 MW of clean energy installed, which is equivalent to 11% of the total 2.8 GW from the region. The report also points out that Uruguay is targeting 15% renewable energy by 2015 and it all looks as if Uruguay is going to reach that goal, since Uruguay has become a very dynamic market in the wind energy sector.
The report also anticipated that in coming years Uruguay will increase significantly the capacity and investments in renewable energies.
To elaborate on the paper and its conclusions four aspects were taken into account: the most relevant in the current framework for policies; the structure of the energy market; the level of installed capacity for clean energy in the web and size of the market.
This is followed by investment in clean energy and loans for projects referred to climate change, carbon low emissions deals and value chains of clean energy and conditions for the carbon emission compensation projects plus corporate actions towards the mitigation of such emissions.