Opportunities in the Renewable Energy Sector – Highlights.
Argentina and renewable energy resources:
♦ Extensive regions of the country have wind and solar energy sources. Existing wind farms obtain capacity factors over 60% and solar plants get high solar irradiation during longer periods of time on an annual basis.
♦ Availability of large biomass resources derived from agricultural and energy crops, forestry, organic waste.
♦ Significant hydropower potential estimated in 169,000 GWh/year.
♦ Large seashore areas of Argentina available for development of tidal energy projects.
♦ Hydrothermal reservoirs (steam and hot water) are available for geothermal projects.
Main renewable energy legal framework:
♦ Laws No. 26,190 and 27,191 promote the power generation from renewable energy with the goal to achieve 20% of the electricity consumption coming from renewable energy sources by 2025.
♦ Law No. 27,424 determines the building blocks for renewable power generation by users for self-consumption and the sale of electricity surpluses.
» Creation of successful RenovAR Program with Dollar-denominated PPAs.
» Resolution N° 136/2016 issued by the Ministry of Energy and Mining of Argentina launched the RenovAR Program Round 1 Resolution N° 275-E/2017 from the Ministry of Energy and Mining of Argentina determined the terms and conditions of RenovAR Program Round 2.
» Resolution N° 100/2018 from the Energy Government Secretariat defined the RenovAR Program Round 3.
♦ Creation of a Renewable Energy Term Market (“MATER”)
» Resolution 281-E/2017 determined the conditions for the establishment of a competitive procedure between generators to determine priority of dispatch of renewable energy projects addressed to supply electricity to the MATER.
Business opportunities:
♦ Increasing demand of renewable energy by corporations and consumers compromised with sustainability goals through the path of a net-zero
carbon economy.
♦ Renewable energy demand aimed at suppling the strong mining activities conducted in Argentina (lithium, copper, rare-earth minerals, amongst other minerals).
♦ Diversified renewable sources (wind and solar) and existing infrastructure (ports, pipelines) become attractive for the development of Green Hydrogen.
♦ Talented professional and workforce and proven capacity to performed renewable energy projects.
♦ Infrastructure and logistics companies network developed in the country with expertise in the construction and development of renewable energy
projects.
♦ Certain restriction in the high voltage electricity transmission lines may present additional opportunities for those interested in investing in said segment or in building renewable energy plants jointly with electricity transmission lines expansion or designing plant taking advantage of the current limitations of the electricity system (v.gr. behind the meter solutions for large user, electricity injection nearby point of consumption -mining- amongst others).
O’Farrell and renewable energy expertise:
- Regulatory matters: Agustín Siboldi and Agustina Fanelli Evans.
- Corporate and financial matters: Uriel F. O´Farrell, Juan Pablo Fratantoni and Sebastián Luegmayer.
- Tax matters: Miguel Alejandro Máximo Tesón, Guillermo Lalanne,
Valeria Estathio and María Celina Valls. - Customs and international trade: Gustavo Enrique Müller.
- Arbitration and Public Law: Uriel F. O´Farrell, Jorge I. Muratorio and
Agustina Fanelli Evans. - Environmental: Jorge I. Muratorio and Agustín Siboldi.
- Labour law: José Luis Zapata and Ignacio A. Castiglione.