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  • Felix Tsourakis

Argentina’s growing renewable power industry

It is well known that Argentina is one of the fastest developing countries in the oil & gas industry globally, gathering increasing attention from producers and international investors. What is now becoming more apparent is Argentina’s enormous renewable energy potential, as its renewable market grows at a phenomenal pace.

Argentina is creating new competitive programs and policies to meet its ambitious renewable energy goals and reach its immense renewable potential, successfully entering the top ten of the Ernst & Young global renewable index in 2018.

Latin America: A world leader on renewable energy

As renewable energy is becoming more cost-effective and widespread, global renewable energy production has increased by 8% over the past 10 years. Latin America is attracting ever-increasing investments, creating new opportunities and projects.

Latin America is a world leader on renewable energy, as roughly 25% of energy comes from renewable sources, compared to the 13% global renewable supply average.

Bioenergy and hydropower are the main sources of renewable energy for Latin America, with wind power and solar energy being on the rise, as the production becomes cheaper and cheaper with recent leaps in technology.

Argentina's growing energy industry

Argentina is rapidly becoming an attractive recipient of investments for renewable energy projects, as its excellent environmental conditions and legal framework allow the country to take advantage of the complementary nature in generation patterns of renewable energy sources, promoting a diversified energy mixture.

Argentina’s wind operators benefit from high efficiency and profitability as winds exceed 6m/s in 70% of the country’s landscape, in a steady direction and speed, allowing for capacity of more than 35%.

The country’s photovoltaic potential creates significant opportunities for service providers and construction companies, thanks to the solar power generation expansion. This growth generates interesting project opportunities for distribution and transmission networks.

Renovar: Argentina’s prosperous investment program

Argentina is creating an attractive environment for renewable energy investments. The Secretariat of Energy launched an innovative renewable energy bidding program called RenovAr, aiming to produce 20% of Argentina's electricity from renewable sources by 2025, with the intermediate target of 16% by 2021.

Renovar is creating the framework for bankable projects that meet international standards. The projects are supported by significant guarantees from the World Bank, which provided more than $480 million to reduce financial risks for investors.

Exceeding Expectations: Argentina's $15 billion investments

Renovar’s energy auctions have exceeded all expectations in the past three years. The first energy auction of 2017 aimed to attract 1,000 megawatts worth of projects for wind and solar, and attracted more than six times that amount from local and international companies.

Argentina’s renewable energies industry has attracted more than 15 billion dollars in investments over 7 years, with more than 120 new projects in operation or under construction. Within the past few years, 197 projects were awarded, opening the way for hundreds more.

Grid reinforcement will be the deciding factor

Argentina is using local energy grids to cover 80% of its energy needs. The opportunity for energy grid projects and consulting is higher than ever, as power generation from renewables and shale gas are increasing exponentially, with producers and operators ready to invest in energy distribution and storage.

Argentina’s energy grids have many contracts available for upgrades and for the creation of major grid unification projects. All new opportunities and incentives will be discussed at the official Argentina Oil & Gas Summit. Find out how to best operate in Argentina first-hand by the Secretariat of Energy and the Argentinian Agency of Investments and International Trade on 10 - 11 July 2019.

Attracting investments: Legal and fiscal incentives

In order to reach its ambitious goals, the Argentinian created tax incentives and promotion measures through the enforcement of Law No. 27191, and its following updates by Law No. 27191 and regulatory decrees.

In order to be eligible for tax benefits, a company has to submit an energy-related project to the relevant authorities, set to start before the end of each tax year. A project is considered started when at least 15% of total investment has been made.

The tax incentives include but are not limited to:

  • Tax relief for international imports of brand-new assets to be used on the renewable energy project, including capital goods, parts, components and inputs

  • Early recovery of VAT paid on infrastructure and the purchase of new assets

  • An 8-year relief from the minimum notional income tax

  • A tax credit certificate for 20%, granted that at least 60% of components are produced in Argentina

And many more.

The time to enter the Argentinian renewables market is now as it is growing to reach this potential.

You can find more about these opportunities first-hand, and benefit from the new incentives, by registering and hearing about these opportunities first-hand by Dr. Erico Spinadel, President of, on the Argentina Oil, Gas & Energy Summit, taking place in 10th-11th of July 2019 in Buenos Aires, Argentina.

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