Uruguay has achieved an extraordinary energy transition, with over 98-99% of its electricity generation now derived from renewable sources as of 2024-2025. The electricity mix is primarily driven by hydropower (approx. 40-42%), wind (28-38%), and biomass (20-26%), with solar contributing about 3-4%. This shift from fossil fuels enables significant energy export.

Uruguay is rapidly positioning itself as a leader in green hydrogen, aiming to become a top global exporter by 2040 using its 98%+ renewable electricity grid. Driven by projects like the Kahirós initiative (launched 2025), the country targets 1 million tons of production annually by 2040, supported by significant EU-backed investment and a focus on decarbonizing heavy transport.