The Uruguayan economy has recorded notable growth in recent years bringing about a significant rise in energy demand both from household consumers and businesses. Although significant progress has been made in connection with energy infrastructure, energy demand is expected to rise alongside economic growth. In this regard, Uruguay faces the challenge of expanding in a sustainable and environmentally-friendly manner. This challenge offers interesting opportunities for developing investments in this sector.
Since 2005, the country has been crafting government policy on energy with the objective of diversifying supply and increasing energy independence. These measures will help bring down the costs of average electric power generation, diminish the environmental footprint and generate greater percentages of autochthonous energy in the grid.
As part of the strategy to generate sustainable productive development, Uruguay has issued standards promoting renewable energy enterprises. For example, government Decree 354/0096 grants specific tax incentives for this sector. This decree is comprised within the framework of the Investment Protection and Promotion Act that declares of national interest both domestic and foreign investment protection and promotion, which must be treated equally.