Argentina - Country Commercial Guide
Renewable Energy

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Last published date: 2021-11-09

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 reach 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 renewal energy plan, and the Renewable Energy Futures Market (MaTER). European and Chinese players, backed by export credit agency financing, dominate the market. 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 International Monetary Fund and high country-risk associated with economic volatility and political uncertainty, some projects have failed to reach financial closing. The referenced projects, approximately 50 in total, could generate an additional 1,000 MWs of clean energy. The government has recently issued “Resolution 724,” which provides a 360-day extension to finalize outstanding projects and also provides a 70 percent penalty reduction to projects which were unable to meet contractual obligations and or reach financial closing.

Resources                                                                             

Under Secretariat for Renewable Energy

Integración Energética Argentina (Ex-ENARSA) IEASA

Argentine Chamber of Renewable Energy

Argentine Wind Association

Argentine Association of Renewable Energy and Environment

For additional information, including market analysis, trade events, contacts, and the products and services that the U.S. Commercial Service can provide to help you succeed in the Argentine market, please contact Marcelo Amden, Industry Specialist.