A change in regulation in Argentina enabling large power users to meet their renewable power obligations through private supply contracts could lead to some USD6 bn of investment in the green power and energy sector over the next three years.
Some 4 GW of renewable energy capacity could come online in that time, said the country’s energy ministry.
“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. “We have settled long-term policies and we are witnessing the outcomes of such policies,” he added.
Ramón Fiestas, president of the Global Wind Energy Council’s (GWEC) Latin America committee, says: “A new scenario for development and financing of renewables projects will open up as a result of the new scheme.” He added: “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 already seeing strong growth in renewable energy investments. The next round of renewable power auctions, known as RenovAr 2, which will take place in October, is expected to lead to a further USD2 bn being invested in the sector.
Argentina aims to produce 8 percent of its energy supply from renewables by 2017, rising to 20 percent by 2025. This translates into the addition of 10 GW of renewable power capacity to the Argentinian grid system, and 1-1.5 GW of new wind power capacity per year.