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
Bodies recovered from illegal goldmine in South Africa where many feared dead
Italy seeks to protect restaurants and hotels from fake and paid-for reviews
‘Don’t allow you to go to the bathroom’: big tech’s call center workers in Greece on strike