Uruguay's UTE Confirms Environmental Review Initiation for Baygorria Solar Plant

en.Wedoany.com Reported - Uruguay's state-owned power company (Administración Nacional de Usinas y Trasmisiones Eléctricas, UTE) has confirmed it will build a solar photovoltaic plant in Baygorria, Durazno department. This comes months after an original 30MW project planned for the site was relocated to Río Negro department due to disagreements.

UTE Vice President Roberto Bentancor and Durazno Department Governor Felipe Algorta jointly announced the project. The plant will be built on UTE-owned land, near the grid connection point, a location that facilitates construction. The departmental government will assist with land preparation and environmental approvals. UTE stated that the process to obtain environmental permits was initiated on Thursday, August 27, and both institutions are preparing to sign the corresponding agreements.

UTE has not yet disclosed the installed capacity, estimated investment, technical configuration, or construction and commissioning timelines for the new Baygorria plant.

In March of this year, the Uruguayan government proposed a 30MW solar project in Baygorria, initially planned near the existing hydroelectric plant node on the Río Negro. The proposal included a mechanism allowing private parties to participate in financing from $200, with annual returns and principal repayment within five years. The subsequent tender was planned to be executed under an EPC model, with an estimated investment of approximately $30 million and a construction period of about 545 days. The process was suspended in May due to administrative appeals against the tender documents. Additionally, objections were raised regarding contract terms and the risk allocation between UTE and potential winning bidders.

The Durazno departmental government also voiced opposition. Governor Algorta called for greater coordination with the departmental administration and questioned the site selection, arguing that the area near Baygorria has tourism development potential. The governor also filed a lawsuit with the Administrative Litigation Court (Tribunal de lo Contencioso Administrativo). UTE subsequently decided to adjust the first plant's plan and relocate it to Río Negro department to avoid disputes delaying new generation capacity. Bentancor assured at the time that UTE would not abandon Baygorria and would develop another solar project there later.

The relocated project is the current Fray Bentos solar plant, with an installed capacity of 30MW, for which UTE received ten bids from domestic and international companies in August. The plant will feature 48,300 photovoltaic modules, with an estimated investment of approximately $20 million. The winning bid is expected to be announced in mid-October, and UTE hopes to complete the contract process by the end of this year.

Minister of Industry, Energy, and Mining Fernanda Cardona noted at the Fray Bentos plant presentation that Uruguay plans to add approximately 500MW of pure solar generation during the current five-year term. UTE is also developing the Melo plant in Cerro Largo department, with an installed capacity of 100MW, featuring approximately 140,000 modules and an investment exceeding $75 million, with operations planned for 2028.

The new Baygorria project will also be included in UTE's overall investment plan. The company plans to invest approximately $2.3 billion over five years in new generation and transmission infrastructure nationwide. UTE stated that these works will have an impact on economic activity and employment, though its announcement did not quantify the specific jobs created by the Baygorria plant. Bentancor said UTE aims to play a central role in national development, and investments must translate into solutions with real impact for the public. "UTE is a company with strong social responsibility," he said.