$5bn investments in renewables expected in Argentina

Ministro argentino de Energía, Juan José Aranguren. Foto cortesía Télam

As reported by Argentina’s National News Agency, Télam, at the Nuclear Security Summit that took place in Washington last 31 March and 1 April and attended by the Argentine president Mauricio Macri, his Minister of Energy, Juan José Aranguren, revealed that the Argentine Government could hold its first public renewables auction in May, following publication in the State Gazette of Decree No. 531 that implements Law 27,191 to incentivise the development of renewable energy.

The new sector regulation seeks to generate 10,000 MW from clean energy by 2025. In line with statements made by the minister, the next two to three years will need to see the installation of 3,000 MW of renewable energy, involving a $5bn investment.

FuturENERGY
The minister also identified the scope of the different resources throughout the country’s regions as a result of their natural potential: a high level of wind power is expected from the provinces of Patagonia; solar power in the Andean region and in the north-west; and biomass in the north-east. The new regulatory framework also takes into account the development of small hydro power plants of up to 50 MW capacity that have lower installation and maintenance costs and a reduced environmental impact.

The new law states that 8% of domestic electric consumption must come from renewable sources by 31 December 2017, with this percentage increasing to 20% by the end of 2025, within a framework in which large consumers will be able to negotiate their own supply contracts with new private generation companies.