WHAT URUGUAY CAN TEACH JAMAICA ABOUT ENERGY TRANSFORMATION

JAMAICA’S ENERGY FUTURE: FROM AMBITION TO ACTION Article 2 of 5

By Emanuel DaRosa

In my previous article, I discussed a difficult but important reality: Jamaica is not currently on track to achieve its target of 50% renewable energy by 2030. Recognizing that challenge is only the first step. The more important question is whether there is a realistic pathway forward.

Fortunately, there is a country that offers valuable lessons for Jamaica.

That country is Uruguay.

A REMARKABLE TRANSFORMATION

Twenty years ago, few people would have predicted that Uruguay would become one of the world’s leading renewable energy success stories.

Like Jamaica, Uruguay was heavily dependent on imported fossil fuels. Its economy was exposed to global fuel price volatility. Electricity prices were vulnerable to external shocks. Energy security was a constant concern.

Today, Uruguay regularly generates more than 90% of its electricity from renewable sources. This transformation occurred in less than two decades.

What makes Uruguay’s story particularly relevant is that it was not driven by extraordinary natural resources. Uruguay did not discover vast oil reserves. It did not invent a revolutionary new technology. It did not receive unlimited government funding.

Instead, it made a series of deliberate policy decisions and then remained committed to executing them.

That distinction matters.

THE MOST IMPORTANT LESSON

Many people look at Uruguay and focus on wind turbines, solar farms, and transmission infrastructure. Those investments were important. However, they were not the primary reason for success.

The most important lesson from Uruguay is that the country created certainty.

Investors knew where the country was going. Developers understood the long-term objectives. Financial institutions had confidence in the regulatory framework. Utilities could plan accordingly. Government agencies worked toward a common objective.

When uncertainty was reduced, investment followed. When investment followed, deployment accelerated. When deployment accelerated, transformation became possible.

This lesson applies as much to Jamaica today as it did to Uruguay twenty years ago.

RENEWABLE ENERGY IS NOT THE GOAL

One of the most interesting observations made by Dr. Ramón Méndez Galain during his recent presentation in Jamaica was that the transition to renewable energy was not primarily about technology.

It was about national objectives.

Renewable energy became a tool to achieve those objectives.

Those objectives included:

• Energy security

• Reduced fuel imports

• Economic competitiveness

• Price stability

• Environmental sustainability

• National resilience

  
  

This is an important distinction.

Too often renewable energy discussions become debates about specific projects or technologies. The real question should be:

What kind of energy system does Jamaica want to build?

Once that question is answered, the technologies become implementation tools rather than the focus of the debate.

THE ROLE OF PRIVATE CAPITAL

Another lesson from Uruguay deserves particular attention.

The transformation was not financed exclusively by government. Private investment played a major role.

The government established clear objectives and a stable framework. Private developers, banks, institutional investors, and international financing organizations provided the capital required to build the infrastructure.

This approach allowed Uruguay to accelerate deployment while limiting the burden on taxpayers. For countries with limited public resources, this model is extremely powerful.

Jamaica faces similar realities. The scale of investment required to modernize our energy infrastructure is significant. Government resources alone will not be sufficient.

Success will require attracting local and international private capital and creating an environment where investors have confidence that projects can move from concept to operation within reasonable timelines.

WHY THIS MATTERS NOW

The timing of this conversation is important.

Jamaica is currently confronting several challenges simultaneously. We are pursuing ambitious renewable energy targets. We are modernizing our electricity sector. We are evaluating future regulatory frameworks. We are strengthening infrastructure resilience following Hurricane Melissa. We are seeking ways to improve economic competitiveness and reduce electricity costs.

These are not separate discussions. They are interconnected. Energy sits at the center of all of them.

Every hotel, manufacturer, hospital, school, data center, and household depends on reliable and affordable electricity. The decisions we make over the next several years will influence Jamaica’s competitiveness and resilience for decades to come.

JAMAICA’S OPPORTUNITY

The encouraging reality is that Jamaica possesses many advantages.

We have world-class solar resources, a mature utility system, experienced engineers and energy professionals, access to international capital markets, strong relationships with multilateral development institutions, and a private sector that understands the importance of reliable electricity.

Most importantly, we have a growing national consensus that our energy future must look different from our past.

The challenge is no longer proving that renewable energy works. The challenge is determining how to deploy it at the scale and speed required.

FROM PROJECTS TO PROGRAMMES

Perhaps the most important lesson from Uruguay is that transformational change rarely occurs through isolated projects. Transformation occurs through coordinated programmes.

Individual projects are important building blocks, but they must be part of a broader vision. The countries that have successfully transformed their energy systems did not simply approve one renewable project after another. They established clear national objectives and created frameworks capable of delivering them.

That is where Jamaica’s conversation may need to evolve.

Rather than asking which individual project should come next, we may need to ask:

What programme of investments, policies, financing mechanisms, and infrastructure improvements is required to achieve the future we want?

That is a very different question. And it may lead to very different answers.

LOOKING AHEAD

Uruguay’s experience demonstrates that large-scale energy transformation is achievable. It also demonstrates that success is not determined by technology alone.

Success depends on leadership, planning, execution, and the ability to mobilize investment around a common national objective.

Jamaica possesses many of the ingredients necessary for success. The question is whether we can align them effectively.

In my next article, I will examine one of the most misunderstood aspects of the energy transition: the difference between installed renewable capacity and actual energy production, and why solar alone will not be enough to achieve Jamaica’s long-term goals.

ABOUT THIS SERIES

Jamaica’s Energy Future: From Ambition to Action is a five-part series by Emanuel DaRosa, former President and CEO of Jamaica Public Service Company and CEO of SunTerra Energy.

The series examines Jamaica’s progress toward its renewable-energy goals, the operational realities of integrating renewable generation into an island electricity system, and the practical steps required to build a more affordable, reliable, resilient, and energy-independent Jamaica.

The articles are intended to contribute to a constructive national discussion involving Government, regulators, utilities, investors, development partners, businesses, energy professionals, academics, and consumers.

THE FIVE-PART SERIES

Part 1 - Jamaica Is Not on Track to Reach 50% Renewable Energy by 2030 Jamaica’s current renewable-energy position, the scale of the remaining gap, and why the present pace is insufficient.

Part 2 - What Uruguay Can Teach Jamaica About Energy Transformation How long-term planning, policy certainty, national consensus, and private capital transformed Uruguay’s electricity sector.

Part 3 - Why Solar Alone Will Not Get Jamaica to 50% Renewable Energy Why installed capacity, annual energy, and firm power are different — and why storage is essential for Jamaica’s grid.

Part 4 - Building a Resilient Energy System for Post-Melissa Jamaica How national reconstruction can create stronger, geographically diverse, climate-resilient energy infrastructure.

Part 5 - A Practical Roadmap to 50% Renewable Energy - and Why Jamaica Should Not Stop There A programme-based pathway to 50% and a responsible strategy for moving beyond it while managing LNG commitments.

Readers who encounter the series out of sequence are encouraged to begin with Part 1 and continue through the articles in order, as each builds upon the analysis and conclusions of the previous instalments.

Follow Emanuel DaRosa and SunTerra Energy on LinkedIn for the remaining articles and future discussion on Jamaica’s energy transformation.