Sep 1 (Renewables Now) - Argentina's new market rules enabling private power purchase agreements (PPAs) could lead to as much as USD 6 billion (EUR 5 bn) in investment in the country's renewable power sector over the next three years and the addition of 4 GW of capacity.
These are estimates by Argentina's energy ministry according to a press release by the Global Wind Energy Council (GWEC), which has organised a seminar on Friday at the Buenos Aires Stock Exchange to discuss the regulations.
The new rules will allow large power consumers to directly sign supply contracts to meet their renewable power obligations. Ramon Fiestas, president of GWEC's Latin America Committee said this will open up a new scenario for development and financing of renewables projects. "We have seen how the development of private PPA markets has become an important driver for the wind sector in a growing number of countries around the world," he added.
Argentina has set a target of 8% renewables in its electricity mix by the end of 2017 and 20% by the end of 2025. GWEC said this implies the addition of 10 GW of renewable power capacity.
Last year Argentina held the first tender under its RenovAr renewable energy auction programme and an additional tender round 1.5, which together awarded 2.4 GW of renewables capacity. According to the GWEC announcement, this represents around USD 4 billion of investment. Argentina recently launched a second round of RenovAr, seeking 1.2 GW.
(USD 1 = EUR 0.840)