"The results speak for themselves. Today, Uruguay produces nearly 99% of its electricity from renewable sources, with only a small fraction—roughly 1%–3%—coming from flexible thermal plants, such as those powered by natural gas. They are used only when hydroelectric power cannot fully cover periods when wind and solar energy are low. The energy mix is diverse: while hydropower accounts for 45%, wind can contribute up to 35% of total electricity, and biomass—once considered a waste problem—now makes up 15%. Solar fills the gaps.

The economic impact has been profound. The total cost of electricity production decreased by roughly half compared to fossil-fuel alternatives, and the country attracted $6 billion in renewable energy investments over a five-year period—equivalent to 12% of its GDP. About 50,000 new jobs were created in construction, engineering, and operations, roughly 3% of the labor force. Even more striking, Uruguay is no longer subject to the wild swings of global fossil fuel markets.

This transformation was not just technical; it was also regulatory and structural. Uruguay moved to long-term capacity markets, providing investors and utilities with predictability while removing the bias that favored fossil fuels. The government’s adaptive approach, maintained through five administrations, ensured consistency. Instead of making climate the primary focus, policymakers prioritized cost, reliability, and economic benefits; emissions reductions were a valuable bonus."
https://www.forbes.com/sites/kensilverstein/2025/10/19/uruguays-renewable-charge-a-small-nation-a-big-lesson-for-the-world/