DURAZNO, Uruguay — Uruguay’s state-owned electricity company UTE has confirmed plans to build a photovoltaic solar park in Baygorria, ending months of uncertainty following disagreements with the Durazno departmental government over the project’s location.

UTE Vice President Roberto Bentancor announced the decision alongside Durazno Mayor Felipe Algorta on Thursday, August 27.

Under the new arrangement, the solar facility will be developed on land owned by UTE near the electricity grid connection point. Durazno authorities have raised no objections to the alternative sites selected for the project.

The agreement allows both sides to move forward with renewable energy development while protecting land near Lake Baygorria for potential tourism projects.

Baygorria Solar Park Moves Forward

The Baygorria solar park had previously faced uncertainty because UTE and the Durazno government held different positions over its proposed location.

Durazno authorities had asked UTE not to proceed unilaterally with the original project. The departmental government argued that land close to the lake had significant tourism potential.

The disagreement became more serious earlier this year. Durazno even filed an administrative challenge seeking to halt the original project.

The national government subsequently redirected another solar investment toward Río Negro to prevent delays in Uruguay’s renewable energy expansion.

However, UTE maintained its interest in developing a photovoltaic facility in Baygorria.

Alternative UTE Land Provides a Solution

Following further discussions, UTE and Durazno authorities reached a compromise.

The solar park will now be developed on alternative UTE-owned plots. These properties are close to the connection point needed to integrate the plant into the electricity network.

This location should also make construction more efficient, according to UTE.

Meanwhile, the Durazno government will assist with preparing the land and processing environmental requirements.

Environmental procedures for the project began on August 27. Both institutions will also work on the agreement needed to implement the plan.

Lakeside Area Reserved for Tourism

The agreement also addresses Durazno’s concerns about Baygorria’s tourism potential.

Land near the lake that had been considered for the original solar development will instead be reserved for future tourism projects. The arrangement therefore separates the renewable energy project from the area that local authorities want to develop for tourism.

This compromise became the central element in resolving the previous dispute.

It allows UTE to maintain a solar generation project in Baygorria without occupying the lakeside land prioritized by the departmental government.

Project Could Create Up to 200 Temporary Jobs

The project is also expected to generate employment during construction.

According to information reported following the agreement, construction is expected to take around one year and could create approximately 150 to 200 temporary jobs.

The solar park forms part of UTE’s wider investment strategy.

UTE plans to invest approximately US$2.3 billion over the five-year period in electricity generation and transmission projects across Uruguay. The company says these investments should also contribute to economic activity and employment.

UTE and Durazno Expand Cooperation

The agreement goes beyond the Baygorria solar park.

UTE and the Durazno government have also been discussing the future administration of the Baygorria settlement. Most of the roughly 120 homes currently associated with UTE are expected to come under departmental administration, while UTE would retain several properties and other facilities.

Both institutions also agreed to improve monitoring of the Yí River basin.

Plans include additional measuring equipment and technologies designed to provide better information about river levels and help authorities monitor potential flooding.

The latest agreement marks a significant shift after months of disagreement.

Rather than abandoning Baygorria, UTE will proceed with the solar project on different land while Durazno preserves the lakeside area for future tourism development.