In recent years, Uruguay has made significant progress in developing renewable energy. Wind power has accounted for about 40% of total power generation, and the power generation of renewable energy sources such as biomass and solar energy has also continued to increase.

The Uruguay Electricity Market Authority recently released the latest statistics showing that the country's renewable energy production has reached expectations in 2023, with renewable energy power generation accounting for 88.5% of the country's total power generation. The development of renewable energy has also reduced the cost of electricity production in Uruguay by nearly half and created 50,000 jobs.

The reason for such achievements is related to the energy transition that Uruguay started very early. The Uruguayan government began studying and adjusting the energy structure in 2005 and adopted the "2005-2030 Energy Development Plan." The plan formulates a series of stimulus policies for investment in the renewable energy sector and promotes private and foreign investors to actively participate in the domestic renewable energy market. By signing a 20-year contract with project developers to ensure that the State Grid purchases electricity at a fixed price, Uruguay's renewable energy sector has attracted approximately US$6 billion in investment in five years.

At present, Uruguay has begun to actively promote the energy transformation into the second stage. One of its main goals is to develop the green hydrogen energy industry vigorously. According to Ukrainian government estimates, by 2040, the green hydrogen energy industry can create potential benefits of US$1.9 billion annually for the country. In 2021, Uruguay's Ministry of Industry, Energy and Mining, the National Oil and Gas Company, and the National Electricity Company jointly formulated the National Green Hydrogen Strategy, which regards green hydrogen as an important part of the overall sustainable development plan and is committed to Improve the regulatory mechanism, simplify the approval process, and formulate attractive incentives. In 2022, Uruguay launched a green hydrogen energy development roadmap, in which the government allocated US$10 million for green hydrogen energy research and development pilot projects.

"Uruguay is willing to cooperate with China in investment, technology, and trade in the field of renewable energy to jointly promote the global decarbonization process." Uruguayan Foreign Minister Omar Paganini said that Uruguay and China have a common vision of sustainable development and can jointly promote the global decarbonization process. Cooperate in many aspects.