Uruguay’s energy market in 2025 stands out for its flexibility and smart trading. Official data show Uruguay exports electricity to Argentina while importing cheaper energy from Brazil.

This approach helps Uruguay balance its grid, keep costs low, and profit from regional demand shifts. Uruguay produces nearly all its electricity from renewable sources.

In the first half of 2025, hydropower covered about 50.5% of demand, wind 32.8%, biomass 12.7%, solar 2.8%, and thermal plants just 1.2%.

This clean energy mix gives Uruguay a reliable base, but extreme weather still challenges the system. A cold winter pushed electricity use to a winter record of 2,359 megawatts on June 30.

When demand spikes, Uruguay sometimes needs extra power. Instead of running expensive and polluting thermal plants, Uruguay imports electricity from Brazil.

Uruguay’s Unique Energy Situation in 2025: Exporting to Argentina, Importing from Brazil. (Photo Internet reproduction)

In January alone, Uruguay bought 20.1 gigawatt-hours from Brazil at prices lower than local generation. This strategy saves money and reduces pollution.

At the same time, Argentina faces its own energy shortages. A nuclear plant outage and high demand led Argentina to buy more electricity from Uruguay.

By September, Uruguay had exported about 191 gigawatt-hours to Argentina, earning $95 million. These sales exceeded Uruguay’s forecasts for the year.

Uruguay’s state utility, UTE, offers daily blocks of energy to both Argentina and Brazil. Buyers only accept these offers if the price fits their needs. Uruguay only exports when it makes financial sense, often requiring advance payment for thermal-generated power.

A new agreement between Brazil and Uruguay, signed in 2025, upgraded the main transmission line to 525 kV. This allows more electricity to flow between the countries, making trade faster, safer, and more reliable.

The improved connection means Uruguay can import more when needed and export surplus power more easily. Uruguay’s energy trade strategy is practical and profit-driven.

By importing cheap power and exporting when prices are high, Uruguay keeps its own costs down and brings in extra revenue. This approach also supports its neighbors during shortages.

In 2023, Uruguay exported $20.9 million in electricity, mostly to Argentina, and imported $140 million, mainly from Brazil. These numbers reflect Uruguay’s role as both a buyer and seller in the regional market.

Uruguay’s experience in 2025 shows the benefits of a flexible grid, strong cross-border links, and a focus on renewables. The country uses its resources and connections to adapt quickly, keep prices stable, and support economic growth.