Two Renewable Energy Success Stories
Portugal’s climate action commitments made the headlines when the country ran on renewable energy for 6 days straight. The benefits of the energy strategies implemented two decades ago in support of the clean energy transition are now evident. In 2021, the country of 10 million became coal-free 8 years ahead of schedule thanks to renewables replacing the energy gap left by the coal plants (see Figure 1).
Across the Atlantic Ocean a country in South America is reaching even greater milestones.
Like Portugal, Uruguay does not have any active coal plants and is working to decrease its reliance on fossil fuels entirely. In terms of the country’s electricity generation (N.B. only a fraction of overall energy consumption which includes transport, heating and industrial processes) have a look at a direct comparison between Uruguay and Portugal’s supply mix in 2022:
Between January and October 2023 Portugal’s renewable production supplied 56% of total electricity consumption. Last November, the grid ran on clean energy for 149 consecutive hours and passed an important test in demonstrating its ability to deal with the volume and variability of the generation of renewable energy.
In fact, in that time the country was producing more than it was consuming, selling the excess energy to Spain.
The key to success lies in the diversification of sources, made possible by Portugal’s meteorological features: the sun tends to shine when there is low wind, and conversely, wind tends to blow when the clouds block the sunshine from penetrating through. Moreover, rainy days contribute to the replenishment of the rivers.
Uruguay benefits from similar advantages, thanks to which the country has achieved remarkable success in its energy sector, with 98% of its electricity demand now met by renewable sources.
This achievement is largely the result of the country’s strategic response to soaring oil prices in the early 2000s. Recognising the need for a sustainable alternative, Uruguay embarked on a transformation of its energy mix. By 2023, renewables accounted for 90% of the country’s electricity generation, representing 56% of its overall energy supply matrix (exactly like Portugal!).
The pivotal moment in this transition came when Ramón Méndez Galain, a nuclear physicist, assessed the challenges that Uruguay was facing and came to the controversial conclusion that nuclear energy wasn’t the solution. Instead, Galain believed a transition to wind energy would do the trick, and when he published a paper supporting this idea he received an invite to become Uruguay’s energy secretary, and accepted.
The plan that Galain drafted would not be the easiest to implement: Uruguay lacked the financial means to fund the proposed transition. With a $50 billion economy, the country couldn’t afford the $6 billion investment required to implement the scheme. And this is where another of the country’s favourable characteristics came in handy: Only thanks to its political stability was the government able to attract foreign investment.
Public-private partnerships were successfully established thanks to the security that the country offered in paying the investments back. In a bold move, the government agreed to buy all the energy produced by the new infrastructure at a fixed rate, for 20 years. That did the trick. When they got eight times the bids they needed, they decided to scale up the transition, offering the long-term contracts to all bidders that agreed to paying the winner’s prices. 80% accepted.
This resulted in Uruguay increase its electricity generation by more than 40%.
Uruguay’s and Portugal’s success stories in transitioning to renewable energy highlight the importance of political stability. But what of the countries that lack such stability? Many emerging economies struggle to provide basic needs such as food, water, and education, so how are they meant to focus on funding the energy transition?
Should nations that have historically contributed to global warming during their development now take responsibility by assisting emerging economies in their transition towards fossil fuel-free industrialization? This would essentially mean that developed countries have a chance to make amends for their past mistakes by financially supporting clean development in emerging economies.
This question raises ethical and practical considerations about global responsibility and equity. However, it is clear that a collaborative approach is necessary to address climate injustice and ensure a sustainable future for all. This topic will be explored in my next blog, examining how cooperation and mutual assistance that already occurs in the wild, specifically in mycelium networks (fungi), can guide international efforts towards climate justice.
