Stung by the 2008 oil price spike, Uruguay now produces up to 98% of its electricity from renewables. Can other countries follow suit?
It was the 2000s, and fossil fuel prices were rising worldwide. After a period of volatility in the 1980s, the crude oil price per barrel had reached one its lowest points – $20 – at the end of 2001 but then, over the course of six years, it tripled before a new oil shock saw prices surpass those of the 1970s, reaching a record $145 a barrel on 3 July 2008.
Uruguay imports its oil, so it had a problem. Demand for energy in the country had grown by 8.4% the previous year and household energy bills were increasing at a similar rate. The 3.4 million-strong population was becoming restless. Lacking alternatives, President Tabaré Vázquez was forced to buy energy from neighbouring states at higher prices, even though Argentina, Uruguay and Paraguay had a mutual aid agreement in case of emergency conditions.
About Author
More Stories
Meta blocks major Muslim Instagram page in India amid rising conflict
Dutch climate campaigners vow to take Shell to court again
Australia has been hesitant – but could robots soon be delivering your pizza?