World Bank has approved a 20-year US$480 million guarantee for Argentina’s flagship renewable energy plan, RenovAr. Under RenovAr, Argentina has already seen two highly successful renewable energy auctions in which the government was shocked by the high levels of interest in solar. The World Bank will now support the Fund for the Development of Renewable Energies, which was created to facilitate the financing of projects in wind, solar, biomass, biogas, and small hydroelectric. The project encourages private investment in renewable energies that help meet the growing demand for sustainable development.
The Argentina energy ministry will award power purchase contracts to the potential developers on assessing the technical and financial proposals. Potential developers will sign 20-year long-term power purchase contract to sell power from proposed power projects. The projects are scheduled to be completed within two years from the auction. With this auction, the Argentinian government expects to attract between $1.5 billion and $2 billion investments in the renewable energy sector.
The government has set a target to increase the share of renewable energy to 20% in the energy mix by 2025. Another target called for 8% renewable energy share in electricity consumption by 2017. As a result, several renewable energy auctions are expected to take place in the country over the next few years. The government is expected to continue holding these types of auctions.
Having been slow to actively encourage solar deployment in comparison to other major South American markets, Argentina has now declared 2017 as a “Year of Renewable Energy”. President Mauricio Macri has asked for official documentation from the National Public Administration to use 2017 – Year of Renewable Energy as a national slogan. It is expected to lead to a surge in seminars, conferences, and educational programs promoting renewables. The decree also outlined the three major benefits of transitioning into the use a renewable resources. First, it will lead to the reduction of greenhouse gas emissions. Secondly, it aids on reducing reliance on other countries for energy supply. Finally, this shift will lead to the creation of local jobs for project installation, manufacturing, and O&M services.
For the full article: