13/12/24
Argentina’s renewables to get boost in 2025
New York, 13 December (Argus) — Argentina's renewables sector is looking at a
rosier outlook in 2025 supported by new legislation and improved economic
conditions. The country's renewable energy legislation, which was enacted in
2015 and expires at the end of 2025, stipulates a target of 20pc participation
of renewables — excluding hydropower plants greater than 50MW — by the end of
2025. The country has not met annual targets, but there is growing confidence
that it could come close to the goal by the end of next year. Renewable sources
covered 15pc of the demand in October, according to the latest report from the
energy secretariat, up from 13.5pc in July. The country added 373MW in new
renewable generating capacity in the first three quarters of this year. The
trade organization of wind energy CEA, estimates that 700MW in new solar and
wind capacity will be added in 2025. A replacement renewable law focused
primarily on investment, which the ruling Libertad Avanza party plans to submit
in early 2025, and economic deregulation underway has the sector confident that
financing for projects will soon be readily available, ushering in a boost in
private investment for renewables. Ignacio Criado, a partner at the Tanoira
Cassagne law firm who focuses on renewable energy, said he expects the country
to be close to the 20pc renewable target by the end of 2025 and that there will
be sustained growth in coming years. "More players are interested in the
construction of renewable energy plants, with solar power in the north and wind
in the south," said Criado. He said that the country's increasing economic
stability and a government program providing incentives for large-scale
investments, known as the RIGI, are fostering interest among investors.
Argentina's economy, while still in tough shape, has improved in the year since
president Javier Milei took office. While annualized inflation is still in
triple digits, the monthly rate fell from 25.5pc in December 2023 to 2.4pc in
November, according to the statistics agency. It was 112pc in the 12 months
through November. The economy shrank by 3.4pc in the first half of the year and
will contract by around 3pc the full year, but is expected to grow by 5pc in
2025, according to the IMF. During a 10 December address marking his first year
in office, Milei said tax reform and elimination of exchange rate and customs
controls would be forthcoming, adding to investment flows. RIGI boost The
administration has already received requests under the RIGI mechanism for
$11.8bn in investment, primarily in energy projects, Milei said. Among the
projects in line for the RIGI is the state-owned YPF Luz's 305MW El Quemado
solar plant, the first stage of which should be ready by 2026. In early
December, the state's energy wholesaler, Cammesa, awarded a contract for eight
new renewable projects with a combined capacity of 561MW. It received 31
proposals for a total of 1,639MW. Of the projects, 345MW were awarded to
Genneia, the country's largest renewable company with more than 1GW in installed
capacity, and 88MW to Australia's Fortescue for its Cerro Policia wind farm in
the southern Rio Negro province. The energy will be used for its planned
low-carbon hydrogen project. These projects should start coming on line from the
end of 2025 in throughout 2026. As of October, Argentina had 6.56GW in installed
renewable capacity, including 4.12GW in wind, up by 11.2pc from a year ago,
1.63GW in solar, up by 19.6pc, and 82MW in biogas, up by 5.4pc. It also had
524MW in small hydroelectric plants and 201MW in biomass, with no new capacity
from a year earlier. Large-scale hydroelectric plants totalled 9.63GW, while
thermal electric plants totalled 25.28GW and nuclear plants 1.75GW. By Lucien
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