Uruguayan state-owned power company, PTE, has issued a tender for the development of 65 MW of solar projects in the country.

The scope of work in this tender includes the construction, commissioning, operation, and maintenance of solar projects. According to the tender documents, PTE is expected to provide solar modules and transmission infrastructure for the project.

The construction of the project is expected to begin in the first quarter of 2020.

The potential for solar power in Uruguay is huge, as it receives an average of 1,700 kW/m2 of sunlight a year. This puts it on the same level as Mediterranean countries and makes solar energy a viable option. The country introduced legislative reforms to encourage the adoption of solar power in 2013. The country also provides benefits that are available under the investment promotion law that offer incentives for investing in manufacturing, implementing, and utilizing solar energy.

According to the Uruguayan government, there is a strong emphasis on local production, and the priorities for solar energy include rural areas—particularly rural schools far from the grid, hospitals, hotels, sports clubs, and new public buildings.

Also, the country has vast potential for developing wind power projects. Between 2014 and 2018, Uruguay increased its share of wind power from one percent to 33%. Moreover, in September 2018, the country achieved a new historical wind power generation record of 48.94%.

In June 2019, Mercom reported that in 2018, the regions of Sub-Saharan Africa, Latin America and the Caribbean, and South and East Asia were the top three regions where multilateral development banks were looking to invest in climate finance. Latin America and the Caribbean saw investments of around $8,770 million for the same.