Argentina is amongst the first four countries with the highest levels of unproven reserves of shale oil and shale gas, and its territory offers plenty of opportunities to renewable energy sources. Furthermore, Argentina also has important reserves of conventional gas2.
In 2015, Law No. 27191 was enacted to promote the use of renewable sources for electric power generation. This law requires that, by the end of 2025, 20 % of all the electric power derives from renewable energies.
With the aim of attracting capital investments in the sector in order to achieve the goals set by the new law, the Ministry of Energy and Mining launched the RenovAr program. Rounds 1.0, 1.5 and 2.0 of the program showed very positive results in terms of number of bids and prices. Up to the end of 2017, the program had awarded 4500 MW of power, which, save for the worsening of any economic context issues detrimental to the government energy objectives, should be progressively added to the system over the next years at an average cost of USD/MWh 55 as per the last tender (2017).
Moreover, other opportunities within the energy sector have been spotted, such as:
• Over 10GW of new baseload generation capacity and transmission infrastructure needed.
• Great production potential and investment promotion regimes for shale oil/gas.
• Development of offshore and biofuels.
• Energy opportunities add up to more than USD 65 Bn.
Creimerman Law can advise with this and other energy issues. Start with a free consultation.