For years, Argentina peered around at its neighbors as they joined the global race to reduce CO2 emissions. And as they geared up to run their industries with big renewable energy investments. Today, the nation itself has laid down a well-planned clean power strategy – making it one of the most attractive investment markets in the world.
Historically, Argentina has been heavily dependent on fossil fuel, spending billions of revenue dollars to import them. The country has never been ideally poised to attract energy investments for a number of reasons. First, a badly devalued currency made it an unfavorable market with a huge budget deficit. Second, the government has shown very little interest in renewables.
Up until now.
The esteemed, Ernst & Young Renewable Energy Country Attractiveness Index (RECAI), ranked Argentina in the Top 10 nations where investment would be most favorable, and well, profitable. Undoubtedly, an aggressive policy thrust, and an even stronger political will have changed the nation’s fate. A powerful duo that has worked for Britain’s coal-free, carbon-free agenda as well.
Hence, in a matter of three years, from 2016-2019, it attracted $7.5 billion in renewable energy investment. This led to the creation of 11000 jobs, and contracting of 6.5GWs of clean power projects.
These promising figures have urged authorities to finally tap into the country’s plentiful renewable potential. The plans laid out vow to take it from a 2% clean power hub to one that produces 20% of all electricity with solar and wind power – come 2025.
A Rich Mix of Solar & Wind Power Paves the Way
Renewable energy investments in Argentina are quite lucrative in both, the solar and wind sectors.
According to the country’s Wind Energy Association, 70% of Argentina is exposed to 6m/s winds. This translates into capacity factors of 35% or more. The numbers are as promising on the sunny side as well. At least half of all land receives an average of 3.5kWh of sunshine per square meter annually.
Consequently, a total of 22 wind projects for 1473 MWs, and 24 Solar PV projects for 916MWs were awarded in Argentina’s first every clean power auction. While most of these are yet to go online, it is clear that the nation has forged its path to generate power in a more sustainable manner.
In line with this, the next actionable steps for the government are clear. A steady fall in the reliance on fossil fuel, and achieving the 37% reduction in greenhouse gas goal by 2030.