Renewable and Thermal Generation Auctions Move Forward in Argentina

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Researched by Industrial Info Resources (Sugar Land, Texas)--On April 27, authorities from Argentina's Secretariat of Energy and CAMMESA (the administrator of Argentina's electricity wholesale market) formalized technical proposals of the "RenMDI" renewable energy generation auction, which began last February. According to the tender's schedule, the awarded projects will be announced in July and power purchase agreement (PPA) contracts will be signed through November.

The tender includes the development of new renewable energy in two categories or sections. Section 1 requires the installation of 500 megawatts (MW) of new solar, solar with storage systems, wind with storage systems and biomass-fired generation in specific regions of the country to substitute fuel oil-fired generation. Section 2 requires the installation of 120 MW of new biomass, small hydro, biogas and landfill gas-fired generation in any location within the country aiming to diversify the country's generation matrix.

In total, there are 204 proposed projects, for a total of 2.09 gigawatts (GW). Of these, 148 projects, adding 1.97 GW, correspond to Section 1, and are heavily weighted by 136 solar and solar with energy storage projects for a total of 1.88 GW of new planned capacity. For Section 2, there are 56 proposed projects, adding 119.91 MW; 51 of these projects are for new biogas and small hydropower plants.

The fact that the projects proposed for Section 1 represent four times the capacity requested shows the interest and potential of the renewable energy market in the country. The market has been showing signs of recovery since 2022, after a sudden drop in 2018, when a financial crisis shook the country.

To illustrate this, during 2018, Industrial Info confirmed the kickoff of more than 40 solar and wind projects in Argentina, but the number plunged to 11 projects in 2019 and only four during 2020-2021. By 2022, this trend reversed and Industrial Info confirmed the kickoff of 14 projects that year, and six projects during the first five months of 2023, with an estimated 60 projects by the end of 2023. In all, Industrial Info is tracking 196 active renewable energy projects in Argentina, with a combined worth of US$28 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Industry Project Database can click here for a list of detailed project reports.

Recently, several news agencies in Argentina reported the Secretariat of Energy called for an international auction in June for the construction of up to 3 GW of new thermoelectric capacity to serve different critical nodes in the country. Although there is no official information yet, it is expected that the capacity will be installed (among other regions) in the Northeast Region (probably with a new medium-scale, combined-cycle plant), Cuyo, the Atlantic Shore, the island of Tierra del Fuego (50 to 100 MW of capacity) and the greater Buenos Aires area. The news reports also mentioned the potential construction of a 500-MW combined-cycle plant in the province of Neuquen, which would use natural gas from the Vaca Muerta field.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).