Argentina's Ministry of Economy has taken a significant step towards advancing renewable energy in the country by signing a landmark agreement with ten northern provinces collectively known as Región Norte Grande. The agreement sets the ambitious goal of deploying 2.5 gigawatts (GW) of renewable energy capacity across these provinces.
To achieve this target, a diverse range of renewable energy sources will be utilized, including solar photovoltaic (PV), small hydro, biogas, and biomass. The provinces set to benefit from these projects include Tucumán, Salta, Santiago del Estero, Jujuy, Catamarca, La Rioja, Misiones, Chaco, Corrientes, and Formosa.
The Ministry of Energy has taken a proactive role in this endeavor by requesting Argentina's power market administrator, CAMMESA, to initiate power purchase agreements (PPAs) with the ten provinces of Norte Grande. These PPAs are integral to securing the necessary financing for the development of these renewable energy projects.
Notably, these initiatives are expected to have a significant economic impact by creating approximately 10,000 jobs in the region. Furthermore, they will contribute to Argentina's broader goal of increasing the share of renewable energy in its electricity generation by 5%, a goal emphasized by the governor of Salta.
Sergio Massa, Minister of Economy, underscored the significance of this collaboration, stating, “Today the governors are taking a giant step, perhaps it is not dimensioned because what you see here is the signing of a paper, but what the northern provinces' governors are doing is promoting the national electrical system through PPAs with CAMMESA, in an agreement with the Ministry of Energy, for the transformation of renewables into power for the national electrical system and for the whole north of Argentina.”
Argentina's renewed commitment to renewable energy marks a shift in its energy landscape. After experiencing a period of stagnation in the deployment of renewables, particularly solar PV, the country has shown increasing interest in clean energy. This is exemplified by the recent “RenMDI” auction, which garnered significant attention and resulted in the allocation of 500 megawatts (MW) to solar PV projects.
Earlier in the year, the state-owned company YPF Luz achieved a milestone by commissioning the first phase of a 300MW solar PV project in the province of San Juan.
Despite being one of the largest countries in Latin America, second only to Brazil, Argentina's solar PV deployment has lagged behind neighboring nations. As of the end of 2022, the country had installed approximately 1.1GW of solar PV capacity, according to data from the energy think tank Ember. However, with the recent surge in interest and collaborative efforts like the one with the northern provinces, Argentina appears poised to accelerate its transition to cleaner and more sustainable energy sources.
