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Uruguay Energy
Hydroelectricity and imported petroleum were the
primary
sources of energy in Uruguay. During the 1980s, the nation
reduced its dependence on imported crude oil and increased
its
hydroelectric capacity. At the beginning of the decade,
threefourths of Uruguay's energy came from imported oil; by
1987 less
than half did. This trend toward hydroelectric power was
interrupted during 1988 and 1989 because of a severe
drought.
Oil-burning power stations had to be brought on-line
temporarily,
increasing energy costs. In addition, rotating power
outages were
instituted in Montevideo and other cities. Partly because
of such
conservation measures, total consumption of energy
actually
decreased during the late 1980s. Real growth in the
utilities
sector declined by 12.2 percent in 1989.
The single largest source of hydroelectricity was the
Salto
Grande Dam on the Río Uruguay, built and operated in
cooperation
with Argentina. The US$1 billion dam was completed in 1982
and
supplied 1.8 million megawatt-hours of energy to Uruguay
in 1987
(before the drought), or 40 percent of Uruguay's
electricity. In
1989 the huge project was reported to be facing serious
financial
difficulties. The Uruguayan and Argentine state-owned
power
companies were US$45 million and US$250 million behind in
payments, respectively, to banks and foreign creditors,
and
absorption of the debts by the two nations' central banks
was
expected.
Three other hydroelectric power sources were located on
the
Río Negro. Of these, the El Palmar Dam (located at
Palmar), built
and operated jointly with Brazil, was the largest and
newest (in
full operation since 1983); in 1988 it supplied 330
megawatts to
Uruguay. The Baygorria Dam and the Gabriel Terra Dam (the
latter
in operation since 1948) supplied 108 megawatts and 128
megawatts, respectively, in 1988.
The Sanguinetti administration's policy was to improve
the
existing hydroelectric facilities rather than embark on
new
projects. Emphasis was placed on extending the electrical
distribution network in rural areas. In 1988 the rural
electrical
network spanned 1,400 kilometers, more than double the 630
kilometers in 1984. The government approved a total of
US$139
million in investments in 1988-89 by UTE, mostly in the
distribution program.
Uruguay had no domestic oil resources, despite several
exploration efforts. The nation imported mostly crude oil,
which
was then refined by ANCAP and a few small plants
(see External Sector
, this ch.). In 1985 ANCAP had a refining capacity
of
40,000 barrels per day; its facilities were upgraded
during the
late 1980s.
Data as of December 1990
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