Uruguay hydropower: Distributed generation seen as the remaining option

Uruguay has no suitable sites left for more large hydroelectric power plants – but still has the possibility of potentially building distributed generation plants.

Along the Uruguay River, three large hydropower dams are operating fully within the national territory: Palmar (333MW), Bonete (155MW) and Baygorria (108MW), the latter in the midst of an overhaul process. With Argentina, Uruguay also operates the Salto Grande hydroelectric plant on the waterway. Capacity of 945MW corresponds to Uruguay. 

Hydropower plants help the country mitigate the intermittency of its large fleet of wind farms and its smaller fleet of solar parks. Leveraging water resources eases demand on the country’s thermoelectric assets, chiefly diesel-fired, which require imports, exposing the country to price volatility. 

In terms of future hydroelectric expansion, there are “no large projects to carry out” but there exists the “possibility of distributed generation via mini and micro plants, 200MW,” said a presentation given by Uruguay’s national power dispatch chief Ruben Chaer during a seminar on Chile’s grid operator hosted by Chilean renewables and storage chamber Acera, 

The are “no locations” for new large-scale hydroelectric plants, Chaer said.

Chaer added Chile could maximize its hydropower resources to support the incorporation of renewables, mitigate their intermittency. Chile, like Uruguay, is also an importer of hydrocarbons for power generation.

Regional clean energy champion Uruguay aims to start expanding its power generation park earlier than originally planned, state electricity company UTE chair Silvia Emaldi said last year. Officials want to begin growing installed capacity from 2026, initially via construction of 100MW solar PV modules. 

Installed capacity stands at 4.81GW, comprising hydropower (1.54GW), wind (1.43GW), diesel-fuel oil (1.19GW), biomass (413MW), solar (226MW) and 394 distributed generation plants, together contributing 12MW.

For 70% of the days of the year, combined wind and solar capacity exceeds daily demand, based on 2018 data. Renewable sources – hydropower, wind, solar and biomass – sometimes cover 100% of demand. 

Hydropower plants were, however, impacted by low precipitation levels earlier this year.

Uruguay's power market administrator Adme leverages machine-learning technology for forecasting, via a system known as Vates, the seminar was told.

ALSO READ: Uruguay exports and record demand, Argentina development plan

ALSO READ: How and when Uruguay plans to expand its power generation park