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A framework to advance green hydrogen production

May 8, 2023

In the early 2000s, Uruguay experienced a crippling energy crisis. Lacking oil or natural gas reserves, the Uruguayan government realized that if the country were to become energy independent, it had to move forward with renewables. Today, more than 95% of Uruguay’s electricity is generated from renewable sources, chiefly wind and hydropower.

However, renewables are intermittent, so ensuring a reliable power supply at peak demand times requires an expensive over-installation of capacity. This in turn results in excess of energy at times when the demand is not at its peak. This excess of energy can be sold to neighboring countries/states, but a problem remains: If neighboring countries/states don’t need the energy, then what should be done with it?

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