This Country Runs on 98 Percent Renewable Electricity | Ramón Méndez Galain | TED

Introduction to Uruguay's Renewable Energy Success

In this section, the speaker introduces Uruguay as a country that obtains 98% of its electricity from renewable sources. They discuss the low greenhouse gas emissions and the ability to export energy surpluses to neighboring countries.

Uruguay's Renewable Energy Achievements

• Uruguay emits 30 times less greenhouse gases than the world average for each kilowatt hour consumed.

• The country relies on renewable sources such as wind, solar, water, and biomass waste for its electricity production.

• Uruguay exports renewable energy surpluses to Argentina and Brazil.

• The speaker addresses common questions about replicating Uruguay's success in other countries.

Overcoming Energy Crisis in Uruguay

This section highlights the energy crisis faced by Uruguay fifteen years ago due to rapid economic growth and increasing energy demand. The lack of fossil fuel reserves and dependence on imports led to high costs and blackouts.

Challenges Faced by Uruguay

• Rapid economic growth in Uruguay led to increased energy demand.

• The country has no proven reserves for fossil fuels.

• Importing electricity during dry years resulted in high costs, reaching up to one billion dollars, which was significant for a small economy like Uruguay.

• Blackouts became a common occurrence.

Turning Crisis into Opportunity

The speaker discusses how they saw the energy crisis as an opportunity for change. They transitioned from being a scientist focused on particle physics research to getting involved in finding solutions for the national energy issue.

Transitioning Towards Renewable Energy

• The speaker recognized the need to reinvent themselves and study the energy issue comprehensively.

• They realized that the energy issue had multiple dimensions, including technological, economical, environmental, social, geopolitical, cultural, and ethical aspects.

• The speaker developed a holistic proposal for a just transition to renewable energies with ambitious goals.

• Their proposal reached the president of Uruguay, who invited them to implement it.

Implementing Renewable Energy Policy

This section focuses on the implementation of Uruguay's renewable energy policy. The speaker became the political head of the national energy agency and worked towards gaining support from all political parties.

Gaining Political Support

• The speaker accepted the role of being the political head of Uruguay's national energy agency.

• President José Mujica supported their efforts and asked them to remain in office.

• Negotiations were conducted with all political parties represented in Parliament to gain acceptance for the long-term renewable energy policy.

• Having a policy backed by all political parties was crucial for rapid progress.

Achieving Decarbonization in Five Years

This section highlights Uruguay's remarkable progress in transitioning from a traditional hydrothermal power mix to an almost completely decarbonized one within five years.

Rapid Transition to Renewable Energy

• In just five years, Uruguay achieved an almost completely decarbonized electricity production system.

• Almost half of Uruguay's electricity comes from non-traditional renewable sources such as wind, solar, and sustainable biomass.

• Wind power alone can produce up to 40% of the country's total electricity consumption in a year, comparable to Denmark.

• Abundant organic waste from Uruguay's agro-industrial sector, such as rice husks and bagasse, is now utilized for energy production.

Conclusion

The speaker emphasizes the complexity of transitioning to renewable energy and the need for innovation and planning. They highlight Uruguay's success story as an example that can be replicated elsewhere.

Key Takeaways

• Transitioning to renewable energy requires comprehensive planning and operation.

• Uruguay's success in renewable energy can serve as a model for other countries.

• Innovation and understanding the different dimensions of the energy issue are crucial for achieving sustainable solutions.

The Model Based on Probability of Occurrence

This section discusses a model based on the probability of different weather scenarios using historical data and weather forecasts. It allows for predictions of wind and solar electricity in the grid.

Probability-based Model

• The model is based on the probability of occurrence of different weather scenarios.

• It uses both historical data and weather forecasts.

• Allows predictions of wind and solar electricity in the grid with a week in advance.

Using Water from Dams

This section explains how the model helps determine when to use water from dams.

Water Usage

• The model helps determine how and when to use water from dams.

• Water usage is optimized based on weather conditions and availability of other renewable sources.

Intermittent Sources as King in Uruguay

This section highlights how intermittent sources are dominant in Uruguay's energy mix.

Dominance of Intermittent Sources

• In Uruguay, intermittent sources such as wind and solar are king.

• The total installed capacity of wind plus solar is comparable to the country's peak demand.

• When there is enough wind and solar, almost 100 percent of electricity comes from these sources alone, along with biomass-fired power plants.

Non-use of Water from Dams during Windy/Sunny Periods

This section explains that water from dams is not used during periods when there is sufficient wind or solar energy available.

Non-use of Water from Dams

• During periods with ample wind or solar energy, water from dams is not utilized.

• Hydropower plants come into play when there is no sun or wind available.

Role of Gas Turbines as Backup Power

This section discusses the role of gas turbines as backup power in Uruguay's energy system.

Backup Power

• Gas turbines, combined cycle plants, and engine power plants serve as backup power sources.

• These flexible fossil-fired power plants are relied upon minimally throughout the year.

• Non-renewable electricity accounts for no more than two percent of the grid's electricity in a regular year and sometimes six or seven percent in very dry years.

No Battery Storage or Modern Technology for Electricity Storage

This section highlights that Uruguay achieves its renewable energy goals without relying on battery storage or modern technology for electricity storage.

Lack of Battery Storage

• Uruguay does not use any single battery storage or modern technology for electricity storage.

• Despite this, the country successfully integrates renewable energy sources into its grid.

Complementarity of Different Renewable Sources

This section emphasizes how Uruguay's power mix works due to the complementarity of different renewable sources.

Complementarity of Renewable Sources

• Uruguay demonstrates that different renewable sources can work together despite their individual intermittency.

• The complementarity of wind, solar, biomass, and hydropower allows for a reliable and sustainable power mix.

Positive Economic Impact

This section discusses the positive economic impact of Uruguay's transformation towards renewable energy.

Cost Reduction and Investment

• The total cost to produce electricity in Uruguay was reduced by almost half.

• Renewable energies are now the cheapest option.

• The cost reduction amounts to an impressive 500 million dollars annually, which is one percent of the country's GDP.

New Market Model for Renewable Energies

This section explains how Uruguay had to create a new market model to accommodate renewable energies.

Business Model Transformation

• Renewable energies require a different business model compared to traditional power sectors.

• Uruguay implemented a new market model based on long-term contracts derived from auction processes.

• The optimization model determines the best technical complementarity between sources to minimize overall system costs.

Stabilization of Electricity Costs

This section highlights how Uruguay's comprehensive model stabilizes electricity costs over time.

Cost Stabilization

• The comprehensive model implemented in Uruguay allows for the stabilization of electricity costs.

• The cost to produce electricity is almost independent of fluctuating energy commodity prices.

• This stability protects against supply and affordability difficulties, even during external events like the war in Europe.

Impact Beyond the Electric Sector

This section discusses the broader positive impact of Uruguay's renewable energy transformation.

Economic Impact

• Uruguay received six billion dollars in investment, which is 12 percent of its GDP.

• The transformation created new knowledge, industrial capabilities, and entrepreneurial opportunities.

• Approximately 50,000 jobs were created, representing three percent of the country's labor force.

New Section

In this section, the speaker discusses the transition process towards renewable energy and emphasizes the importance of flexibility and a new market model in the energy system.

Transition Process and Flexibility

• The majority of countries can adopt a transition process similar to Uruguay's.

• Hydro backup capacity is not necessarily required, but flexibility in the system is crucial.

• A new dispatch model and market model are needed to manage energy effectively.

New Section

The speaker highlights the importance of research and development in various fields, including AI and rockets, to create new market models for energy management.

Research and Development for Energy Management

• Companies involved in AI, artificial intelligence, rockets, etc., should also focus on developing new market models for energy management.

• Developing a new energy management system should not be difficult with sufficient research and development efforts.

New Section

The speaker discusses the potential impact of transitioning to renewable energy sources on reducing fossil fuel dependency.

Impact on Fossil Fuel Share

• Transitioning to renewables may not reduce fossil fuel share to 2%, but it can significantly decrease it below 15% or even 20% in many countries.

• The exact reduction will vary by country.

New Section

The speaker shares their experience working with different countries across Latin America, Europe, and other regions, highlighting that Uruguay's solution can be applied in various national contexts.

Applicability of Uruguayan Solution

• The Uruguayan solution has been successful in different national and energy contexts.

• It can serve as a model for other countries looking to transition to renewable energies.

New Section

The speaker emphasizes the importance of strong leadership and political will to drive the transition towards renewable energy.

Leadership and Political Will

• Strong leadership and political will are essential for successful transitions.

• Building a broad political agreement that transcends administrations ensures continuity in the transition process.

New Section

The speaker presents the most important message regarding renewables and their benefits beyond addressing climate change.

Importance of Renewables

• Renewables are not just a solution for the climate crisis; they also contribute to building strong, reliable, and robust power systems.

• They can help reduce and stabilize electricity costs while boosting economies and creating jobs.

New Section

The speaker concludes by emphasizing that renewable energies offer socio-economic benefits at a local level, urging action now rather than waiting until 2030 or 2040.

Socio-Economic Benefits of Renewables

• Renewable energies provide socio-economic benefits at a local level.

• Waiting until 2030 or 2040 is unnecessary; action should be taken now to harness these benefits.