Uruguay’s state-owned power utility will procure electricity from three privately developed solar plants, each with 33 MW of grid injection capacity, under long-term power purchase agreements (PPAs).
Uruguay’s state-owned power utility, Administración Nacional de Usinas y Trasmisiones Eléctricas (UTE), plans to tender for electricity from three solar plants with a combined grid injection capacity of 99 MW under 20-year power purchase agreements.
UTE presented the preliminary terms of public tender P104220 at a technical event in Montevideo involving the Ministry of Industry, Energy and Mining. Tender documents are scheduled for publication on Oct. 28, 2026, with bids due to be opened in the final week of January 2027.
The tender comprises three independent projects, each with 33 MW of active power injection capacity at its grid connection point. This refers to the power delivered to the grid rather than necessarily the peak capacity of the installed PV modules.
The projects will be located in three designated areas. In Tacuarembó, connection options include the Chamberlain, Cuchilla Peralta A and Cuchilla Peralta B substations, all at 150 kV.
In Florida, options include the Pintado A, Pintado B, Colonia Sánchez, Florida and Durazno substations, with connections at 150 kV or 30 kV, depending on the site. The eastern region of the country offers connection points at Carapé, San Carlos, La Plata and Rocha, also at 150 kV or 30 kV.
Each plant’s connection point must be within 5 km of its selected grid node. Connection infrastructure must be dedicated to each project and independent of the other installations.
Bidders may submit offers for one, two or all three projects, with a single price offer for each. UTE will evaluate bids based on price and award each project independently, allowing one company to secure all three contracts.
UTE will purchase all electricity generated, along with the contracted power and ancillary services. Bid prices must include grid connection works, ancillary services and other contractual requirements.
The remuneration structure has two periods. During the first 15 years, payments will be based on the successful bidder’s offer price. For the final five years, remuneration will be based on 40% of that price.
Prices will be denominated in dollars per megawatt-hour and adjusted annually in January. During the first 15 years, the indexation formula assigns a 60% weighting to a fixed component, 12% to the US producer price index, and 28% to Uruguay’s domestic producer price index and exchange-rate movements.
For the final five years, the formula will apply to 40% of the original bid price, with weightings of 30% for the US index and 70% for the Uruguayan indicator adjusted for exchange-rate movements.
The tender also provides for compensation at the contractual price for electricity that cannot be supplied because of grid operating restrictions.
Technical requirements include reactive power services, including Q at Night, which allows solar plants to contribute to grid voltage control at night when they are not generating electricity. UTE will permit only solar PV technology and prohibit battery energy storage systems (BESS).
The plants must be installed within two years. UTE will manage the easements, rights of way and other land requirements for grid connections, although generators will be responsible for the associated compensation payments.
The tender requires a bid maintenance deposit of $300,000 per project. The performance guarantee will be calculated as 1% of estimated annual potential revenue over half the supply period, using a capacity utilization factor of 0.26. The good execution guarantee will equal four times that amount, while the guarantee required under subcontracting legislation will match the performance guarantee.
The tender also sets domestic participation requirements. At least 80% of the workforce must be national, including Uruguayan citizens and residents. Half of that share must comprise women, people older than 50, or young people younger than 24.
The tender assigns 65 points to a domestic goods component, based on a list that includes goods and uniforms for construction personnel. UTE said the Ministry of Industry, Energy and Mining must approve the final methodology, which will be communicated through a circular.
The tender forms part of Uruguay’s plan to add around 500 MW of solar capacity during the current five-year period.
In August, UTE received 10 bids to build a 30 MW solar plant in Fray Bentos, in the Río Negro department. The project will use 48,300 PV modules and requires an estimated investment of $20 million.
UTE is also developing a 100 MW solar plant in Melo, in the Cerro Largo department. The project will use approximately 140,000 modules and requires an investment of more than $75 million, with operations scheduled to begin in 2028.
At the end of August, UTE also confirmed a new solar plant in Baygorria, in the Durazno department, after objections to the original site led the utility to relocate its initial 30 MW project to Fray Bentos. UTE has yet to disclose the new plant’s capacity or construction schedule.
Unlike these initiatives, in which UTE directly develops the plants, tender P104220 will procure electricity from solar projects developed by private companies under long-term supply contracts.
Final participation, construction, grid connection and remuneration requirements will be established in the tender documents and subsequent circulars published by UTE.
From pv magazine LatAm
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