Investments: Renewable Energy in Argentina, a growing sector
In Argentina, the energy sector shows favorable numbers, both in investment opportunities and economic growth. The renewable energy business, generates US$ 37,000 million of investment in energy generation and transmission, ranking No. 3 in the energy market and is the largest gas market in South America.
Renewable energies, with wind energy as the most favorable one, were positioned as one of the ten most attractive destinations for investment. In the last three years, a great leap was seen, which led the government the aim to achieve 20% of energy consumption based on renewable energy by 2025.
The government decided that everything related to the production and distribution of renewable energy should be State policy, creating solid regulations, through an innovative system of guarantees, managing to eliminate uncertainty and creating greater predictability. To achieve this, three projects were created, among them there is “RenovAr”, which includes the contracts signed by the State in which it buys energy from the generating companies. Then in the private market, where the purchase and sale of renewable energy are sought without the intervention of the State, and lastly, the possibility for any user to generate renewable energy from home. Natural gas from Vaca Muerta will make future thermal power plants more competitive, creating excellent investment opportunities for the coming years. In total, it is planned to increase generation capacity by 23GW by 2030 with a focus on renewable energy.
Lastly, it is worth mentioning the Argentine Agency for Investments and International Trade, an independent organization that centralizes all efforts to promote and facilitate international investment and trade. It is a strategic partner and main point of contact for companies that want to invest in Argentina and export their goods abroad. Its primary objective is to contribute to the creation of quality employment in Argentina, promoting investment and international trade. They help Small and Medium-sized companies to expand their businesses and also assist investors in the difficulties and conflicts that may arise.