Argentina’s Energy ministry believes that new market rules that will allow large power users to directly meet their renewable power obligations through private supply contracts could lead to up to US$6 billion being invested in the country’s energy sector over the next three years, and lead to the installation of around 4 GW in new generation capacity.
The new rules were introduced to local and international investors and equipment suppliers at a seminar on 1 September at the Buenos Aires Stock Exchange. It was organised by the Global Wind Energy Council with the participation of the Energy and Mining ministry and the Argentinian-German Chamber of Commerce.
"Renewable power development today occupies a central place in Argentina's energy, political, social and economic agenda", said Sebastian Kind, undersecretary of renewable energy at Argentina's ministry of Energy and Mining.
Ramón Fiestas, president of GWEC's Latin America Committee, commented "A new scenario for development and financing of renewables projects will open up as a result of the new scheme. We have seen how the development of private PPA markets has become an important driver for the wind sector in a growing number of countries around the world."
Argentina is currently seeing a boom in investments in the renewable energy sector, and the event follows the announcement by the government of the next round of renewable power auctions, known as RenovAr 2, which will take place in October, and which is expected to lead to a further US$ 2bn being invested in the sector.
Argentina's Act 27.191 was approved by congress in 2015 and passed into law by the government in 2016. It foresees Argentina achieving 8% of its energy supply from renewables by 2017, and 20% of its supply by 2025. This implies the addition of around 10 GW of renewable power capacity to Argentina's system, which translates into 1 to 1.5 GW of new wind power capacity per year.
Argentina held its first RenovAr tender in October 2016, and a further tender known as RenovAr 1.5 in November. Together, the two auctions awarded 2.4 GW of new renewables capacity, enabling around US$ 4bn of investment.
In August this year the Energy ministry launched RenovAr Round 2, in which a further 1.2 GW of capacity will be auctioned. The auction will take place on 29 November.