The Buenos Aries government is facilitating an investment drive aimed at exploiting Argentina’s renewable energy potential.

The country wants to invest around $5bn in renewable energy by 2018, meaning renewables will account for 8 per cent share of overall power generation instead of its present 1 per cent.

It represents a change in strategy for the government who had initially hoped for increased output from the Vaca Muerta shale field, until market conditions made that possibility unattractive.
Sebastian Kind
The South American country has ideal conditions for producing renewable energy, experts say: wind power suited to Patagonia and solar power suited to the subtropical lands in the north. It is hoped the investment can help bridge an energy deficit which has been running for five years.

This aims to “diversify the power grid, replacing liquid combustibles which are normally mostly imported fossils,” Sebastian Kind (right), Argentina’s undersecretary for renewable energy, said in an interview.

“The first goal is for 8 per cent, requiring around $5bn of investment to achieve between 2,000 and 3,000 MW,” said Kind. “The law aims for a 20 per cent share by 2025, which means 10,000 MW requiring between $15bn-$20bn.”

The law offers several fiscal benefits for investors in renewable energy and promises the creation of a trust fund, FODER, to provide payment guarantees and project financing.

Argentina will hold its first power auction since the bill was passed in May.