Since 2016, Argentina has executed several auctions for wind, solar, small hydro, biogas, and biomass projects to comply with its goal of increasing energy generation from renewable sources and reaching 20 percent of the country’s demand by 2025. The government awarded 244 projects, adding more than 6,300 MW of installed capacity of renewable energies through rounds 1, 1.5, 2, and 3 of RenovAr, the government’s renewable energy plan, and the Renewable Energy Futures Market (MaTER). European and Chinese players, backed by export credit agency financing, dominate the market. Large U.S. companies, such as AES and GE, are also active.
Round 3 of the RenovAr Program incorporated small-scale projects distributed throughout the country, contributing to a more decentralized and federal electric power-generation infrastructure. The referenced projects were mostly installed near consumption areas and were a cornerstone in Argentina’s energy matrix diversification.
Power purchasing agreements were issued in U.S. dollars and for a 20-year duration. At the time, the Argentine government shielded projects from potential economic volatility through a number of instruments, such as a government of Argentina trust fund and World Bank insurance. However, due to fiscal deficit reduction targets tied to the Argentine government’s agreement with the IMF and high country risk associated with economic volatility and political uncertainty, some projects have failed to reach financial closing. Power generation from renewable sources, such as biogas, biomass, wind, and solar, increased by 42.5 percent, 30.4 percent, 28.4 percent and 52.3 percent, respectively.
Resources
- Secretariat of Energy (Spanish)
- Integración Energética Argentina – IEASA (Spanish)
- Argentine Chamber of Renewable Energy (Spanish)
- Argentine Wind Association (Spanish)
For additional information, including market analysis, trade events, contacts, and the products and services the U.S. Commercial Service can provide to help you succeed in the Argentine market, don’t hesitate to get in touch with Marcelo Amden, Industry Specialist.