Uruguay's road towards diversification of its electricity matrix - alliances, interpretations and controversies

Abstract

This paper analyzes the path that Uruguay has taken since 2005 to diversify its electricity matrix and face the different crises and tensions that stressed its electricity system. Dependence on the international price of crude oil, exposure to short and long-term seasonality in hydropower production, disinvestment and lack of state participation prior to 2005 led to the proposal of a short, medium and long-term expansion policy with which Uruguay was able to position itself as a regional leader in alternative generation sources. We analyze in the theoretical framework of socio-technical systems the alliances that made this development possible and we analyze the controversies that were generated around the price of energy and the role of the state as guarantor of private investment through financial compensation mechanisms.