Argentina streamlines energy efficiency program

Market: Electricity, Natural gas
03/12/24

Argentina's government continues to fine-tune its energy efficiency program, eliminating red tape that slowed the import of appliances and machinery into the country.

President Javier Milei's administration launched a new program in August to provide households and businesses with low-interest loans for energy efficiency. It has expanded the program to include more products and incentives.

In late November, it announced a regulatory change for importing energy-efficient products, eliminating the need for performance testing, audits and other bureaucratic steps. Companies importing products now only have to provide an efficiency certification. The measure covers products from televisions for households to motors and pumps for businesses.

The change is part of the government's efforts to deregulate the economy. It is juxtaposed to the president's skepticism for climate change. Milei eliminated the environment ministry and Argentina's delegation to the recent UN Cop 29 climate talks abruptly left the meeting.

The change is part of the government's efforts to deregulate the economy to encourage investment and use of new technology.

The government created in July the ministry of deregulation and state transformation and since then has eliminated hundreds of regulations, including more than 100 related to imports. The government has also eliminated more than 33,000 public sector jobs since Milei took office a year ago.

"Any effort for energy efficiency has an immediate effect," said Nicolas Vizcaino, co-founder of Greempact, which creates energy-efficiency strategies for companies. "There is no excuse not to focus on efficiency."

Greempact analyzes energy consumption data and other variables to create an energy baseline for clients. The data helps design strategies. Its strategies, which include changing technology, improving management and modifying production procedures, have helped some clients reduce consumption by more than 30pc, the company says.

Vizcaino said efficiency is the key to the energy transition, because it not only saves a company money, but also has a positive impact on the entire system, from generation to distribution.

"One megawatt of energy saved is less expensive and has a much greater impact than one megawatt of renewable energy added to a grid," he said.

By Lucien Chauvin

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