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Clean Energy, at What Cost? Uruguay’s Renewables Bid Deepens Electricity Inequality

By: 
Ariana Ortega

After three years of debate, in 2008, the State of Uruguay decided to start diversifying the energy matrix by increasing the share of renewable energy sources, especially wind and solar. Although this process has been introduced as a paradigm for the region, the plan implemented for the development of “clean energy,” far from reverting the inequitable tariff model where those with lower incomes pay more, it actually deepened it. In addition, it favored the private companies’ advancement in the electricity sector. The State is committed to buying all the energy generated by private companies at a higher price than that of other sources.