Solar developer Verano Energy has officially commenced construction on a significant 200MW solar photovoltaic (PV) plant in Argentina, located in the western province of Mendoza. The San Rafael Solar Park is anticipated to begin operations by the end of 2025 and is strategically positioned near a substation, enhancing its operational efficiency.
Mendoza is recognized for its high solar irradiance, optimal land conditions, and ease of access, making it an ideal location for solar energy projects. Verano Energy, known for its extensive development across Latin America, currently boasts over 350MW of operational renewable energy capacity and has a robust development pipeline exceeding 3GW across countries such as Chile, Peru, Colombia, and Argentina.
In Peru, Verano Energy plans to construct nearly 6GW of solar PV capacity aimed at green ammonia production. Earlier this year, the company also sold a 150MWp project located in Mendoza to an undisclosed buyer.
In addition to Verano's initiative, the Mendoza province will see a 305MW solar PV project developed by Argentinian utility YPF Luz and the Mendoza-owned energy firm Emesa. This project marks the first renewable development to benefit from Argentina's Régimen de Incentivo para Grandes Inversiones (RIGI), or the incentive regime for large investments. This newly implemented measure encourages projects with investments exceeding US$200 million by providing enhanced predictability, legal security, and fiscal incentives over a 30-year period. Provinces can also offer additional benefits to companies to facilitate project development.
The YPF Luz project involves a total investment of US$220 million and will be developed in two phases. The first phase will include 200MW of solar PV capacity, targeted for commercial operations by the first quarter of 2026, with construction expected to last 18 months.
Both the YPF Luz and Verano Energy projects contribute significantly to Mendoza's goal of commissioning 700MW of solar PV capacity within the next two years.
Despite trailing behind neighboring countries Brazil and Chile, Argentina is gradually ramping up its solar activity, with a growing number of projects being launched in the past year. In June, Argentinian renewables developer Genneia announced a US$250 million investment to construct two solar PV plants with a total capacity of 273MW in Mendoza.
Additionally, the Argentinian government signed an agreement last year with ten northern provinces to deploy 2.5GW of renewable energy capacity. These projects will be developed across the provinces of Tucumán, Salta, Santiago del Estero, Jujuy, Catamarca, La Rioja, Misiones, Chaco, Corrientes, and Formosa, entering into power purchase agreements (PPAs) with the country's power market administrator, CAMMESA, to ensure financial viability.
