How to regulate microgeneration and prosumers towards a sustainable Uruguayan energy market? Lessons learned from the international experience.

Internationally there is a consensus that microgeneration and prosumers are key elements to achieving a more sustainable energy market. As the literature does not provide a unique concept for sustainable energy, for the purpose of this paper "sustainable energy" means an affordable and secure energy for today's and future generations. However, European countries and the USA are facing some challenges as to how to regulate these new developments-in particular, how to balance incentives and, at the same time, maintain a stable energy market. Thus, this paper will examine prosumers' and microgeneration experiences in the mentioned countries. On the other hand, Uruguay is in an earlier stage of developing prosumers experiences although, in principle, it has the perfect conditions to further explore these developments. Since 2010, consumers in Uruguay have been entitled to generate energy for their own consumption and sell any surplus to the public utility company. However, there is a need to implement further regulation to promote but, at the same time, control the incorporation of prosumers to maintain a sustainable energy market. Considering the international experience and that prosumers could affect the energy market or disrupt the status quo of the energy sector in Uruguay, the main purpose of this paper is to address the question of how prosumers should be regulated towards a sustainable Uruguayan energy market. Therefore, firstly, this paper will describe the current situation in Europe and the USA to understand what the trends in such places are. Secondly, it will explain the current regulation in Uruguay and make the relevant comparisons with the analysed countries. Finally, this research will highlight the main lessons to be learned by Uruguay in order to implement further regulation in a way that balances each individual's right to generate energy and the right of the whole society to have a sustainable energy market. [ABSTRACT FROM AUTHOR]