Just over 2 years ago, on October 15, 2015, it was opened the ban on renewable energies in Argentina.
This date was highlighted by the publication of Law 27.191 in the Official Gazette, a rule that was the true spark which lit the fuse for the spectacular growth of renewables in the southern country. The law introduced a series of key incentives and regulations that have been fundamental in attracting investment and promoting the development of renewable energy projects throughout the country.
Thanks to this legislation, Argentina has attracted investments for more than 7000 million, allowing the creation of new companies dedicated to the implementation and management of photovoltaic power plants, wind farms, biomass, biogas and mini-hydroelectric plants.
RenovAr Program: The Engine of Change
El RenovAr Program, driven by the government, has been key. Its objective is to increase the share of renewable energy in the country's energy matrix, which currently covers only 2%. However, Argentina has set itself the ambitious goal of covering the 20% of its energy matrix with renewable energies by 2025.
To date, three rounds of bidding have been held under the RenovAr Program: Round 1 in August 2016, Round 1.5 in November 2016, and Round 2 in October 2017, which together have awarded 4466,5 MW in projects distributed across 147 contracts. In addition, there are projects under Resolution 202 that will contribute to the goal.
Wind and solar energy have been the biggest winners in these tenders, which has not only resulted in installed capacity, but in attracting international investmentsThis is crucial because, despite Argentina having vast natural resources, it is still lagging behind its neighbors such as Brazil or Chile, which lead in installed renewable capacity.
The International Investment Boom
Law 27.191 not only encouraged the creation of local projects, but also attracted important international investmentsGlobal companies have seen Argentina as an attractive market thanks to the country's vast natural resources: significant wind potential in Patagonia and unexplored solar resources in the north of the country.
In comparative terms, the country still has a long way to go: while Argentina currently has 678 MW installed in renewable energy, its neighbors Uruguay and Chile have 1720 MW and 3740 MW respectively. However, the country plans to reach XNUMX MW and XNUMX MW. 10.000 MW by 2025, which would accelerate the energy transition.
Competitive Prices and Rental income
One of the biggest attractions of the Argentine renewable energy market is the competitive prices. In the tenders of the RenovAr Program, prices as low as 45 USD/MWh have been achieved, a figure significantly lower than the 70-80 USD/MWh that industrial users pay for non-renewable energy. This represents a substantial saving that could have a positive impact on tariffs for end consumers.
Wind Energy: The Pillar of the Energy Future
Wind energy is consolidating as the driving force of change in the energy matrix. So far, wind contracts have been awarded for a total of 2,5 GW throughout the country, positioning it as the technology with the greatest weight in the Argentine renewable sector.
Wind energy has proven its effectiveness by covering 73% of the total renewable energy production in Argentina, being mainly installed in localities in the provinces of Buenos Aires, Chubut, La Pampa and Santa Cruz.
Solar Energy: An Untapped Potential
Although solar energy represents only 1% of the world's energy 15% of production renewable energy in Argentina, its potential is enormous. Several companies, such as 360 Energy, are investing in solar projects in provinces such as San Juan, Catamarca and La Rioja, with the ambition of significantly increasing their installed capacity.
In recent years, 816,25 MW of solar project capacity has been awarded, and new investments are underway with the intention of continuing the expansion of this energy source.
Biogas and Biomass: The Green Alternative
Although wind and solar are the most prominent, biogas and biomass sources are also gaining ground in Argentina. To date, contracts have been awarded for 65 MW in biogas and 158 MW in biomass. Companies like SeedsEnergy They have already announced investments totaling millions of dollars in various projects, such as plants in Venado Tuerto and Pergamino, hoping to further increase installed capacity in the coming years.
Biomass, in particular, has shown notable progress with multiple projects in provinces such as Buenos Aires, Córdoba and Misiones.
Argentina is now positioning itself as an emerging leader in the production of these alternative energies, which not only reduce dependence on coal and gas, but also generate significant economic benefits and reduce environmental impact.
As the country continues to move towards diversifying its energy mix and working to meet its 2025 targets, the future of renewable energy in Argentina is looking increasingly promising.