A little over 2 years ago, specifically on October 15, 2015, it was opened the ban on renewable energies in Argentina.
That day, law 27.191 was published in the Official Gazette, that norm was the spark that lit the fuse for the spectacular growth of renewables in the southern country.
This law has allowed the arrival of investments from 7000 million and hundreds of new companies to install and manage photovoltaic plants, wind farms, biomass and biogas plants and mini-hydroelectric plants.
RenovAr Program
As we explain in other articles, this will be a great year for the promotion of renewables. In fact, the projects signed in the last 12 months will begin to be built, plus 26 that are already under construction, corresponding to the RenovAr Program, promoted by the Government.
If Argentina continues at that rate, it will meet the objective of covering 20% of its energy matrix with renewable energies by 2025, today the figure does not reach 2%, but with the new plants under construction will allow reaching 8% this year and 12% in 2019.
According to several officials: «It is tremendous what is happening in Argentina, the country is positioning itself in the world as one of the most attractive markets for the development of renewable energies ”.
Juan Bosch, president of Saesa, a gas and energy trader, affirms that Argentina is improving very much. "If you look back only two years, you can see that the country played in another league in renewable matters, it only had 1/2% renewable energy in the energy matrix. Today there is no renewable energy congress in the world where Argentina is not discussed as an investment destination ”.
Those investments are coming in from all over the world. These will help Argentina to grow in the renewable worldWhile here there is an installed capacity of 678 MW, Uruguay has 1720 MW (44% of its energy matrix); Chile, 3740 MW (17%), and Brazil, 28.310 MW (18%).
Currently only 678 MW of renewable energies feed the Argentine energy matrix, while meeting the goal set of 20% in 2025 will imply reach 10.000 MW. To achieve this, the government launched the RenovAr Program, a large tender divided into rounds that awards generation projects to different companies.
Until now, the one that had the most diffusion was the RenovAr Program, which has already completed three rounds (round 1 in August 2016; round 1,5 in November 2016, and round 2 in October 2017). Kind specifies that there are already 4466,5 MW awarded by this system, corresponding to 147 projects (59 of rounds 1 and 1,5 and 88 of round 2). "To that we must add 10 more projects of resolution 202."
Pricing
The necessary investments are very important and depend on the type of technology chosen: for example, to install one MW of power in solar energy, must disburse about $ 850000, while for one MW of wind energy about $ 1.2 million is needed.
In terms of resources, the country has nothing to envy other nations. There is a lot of wind (and good intensity) in Patagonia; a lot of sun in the North (although also in Córdoba), and there is many resources of biogas and biomass in the agricultural area. There is also potential in mini-hydroelectric plant.
Renewable energy is cheaper than traditional energy: one of the cheapest RenovAr projects closed at US $ 45 for each MW / h, while today the big user buys from Camessa at US $ 70/80 MW / h. For the normal consumer this is very important, since each MW / h of renewable energy reduces their electricity bill.
Energía eólica
The government wants to create an electricity mix of different technologies (wind, solar, biogas, biomass and mini-hydro), but the main one is wind power, where there are already contracts awarded for a total of 2.5 GW.
Solar energy
After wind energy, solar is next in importance, with awarded projects by 1732 MW. Currently, this technology does not have much penetration in the country. There is only 7 MW in San Juan, to which must be added an experimental plant of 1,5 MW also in that province.
In this case, 360 Energy is, in terms of awards, the largest private solar energy company in the country. Its CEO, Alejandro Lew, points out that, as part of the new renewables revolution, this company signed several contracts under the rules of the RenoVar 1,5 Round (seven contracts, for 165 MW, in San Juan, Catamarca and La Rioja, whose first contract will start operating in March) and in Round 2 (contracts for 147 MW that will come into operation in 2019 and 2020, in Catamarca, San Juan, La Rioja and Córdoba "In total, we will invest $ 300 million".
Lew stresses that Argentina can be a solar power. Especially in the northwest of the country, but also in places that might seem not very efficient, like the province of Buenos Aires (which is better than some areas of Europe). "The advances that are projected in solar energy suggest that the entire local energy matrix could be supplied by that source."
Other energies
Somewhat further behind, but also with investments and projects, come biogas and biomass. So far 65 MW and 158 MW have been awarded, in each case. Today, biogas plants in the country are counted on the fingers of one hand (barely 10 MW), but it is estimated that in the next 24 months there will be about 30.
SeedsEnergy, for example, announced an investment of US $ 11 million to build a biogas plant in Venado Tuerto (2 MW) and a US $ 13 million to build another in Pergamino (2,4 MW). «This would be in the first instance because we think expand capacity. If there is a RenovAr 3, we are going to consider presenting ourselves, because we want to build more plants and reinvest profits.
The green revolution that has been achieved in the last 2 years is being spectacular, and has put the country in the sights of world investors, they are arriving multi-million dollar investments, contracts are signed, dozens of parks are built and employment is generated. There is still a long way to go for Argentina to be a power in clean energy, but the first stone has already been laid.