The first round auction of Argentina’s renewable energy programme called for 1GW renewable projects bids and managed to receive more than 120 bid offers for more than 6GW.
Approximately 90% of the bid offers reached technical qualification and PPAs have been awarded to renewable energy projects totalling 1,100MW. PPAs have also been awarded to solar photovoltaic projects whilst for those biogas, biomass and small hydroelectric projects not awarded, participants have been invited to reduce bid prices in order to secure the PPAs.
The second round auction of Argentina’s renewable energy programme is anticipated to take place at the end of April or beginning of May 2017.
Projects to date
The renewable energy projects which have been installed to date are as follows:
Click here to view table.
Argentina’s renewable energy target is 20% of all electricity produced (currently 31GW) by 31st December 2025. The Argentinian government has established the Renewable Energy Trust Fund (FODER) to help ensure that the target is met by providing financing and payment guarantee.
Tax benefits and Incentives for foreign investors
In addition to the tariff payable under the PPA, there are a number of tax incentives. The extent of the benefits depends on the timing of the project and include (amongst other benefits) refunds of VAT, accelerated tax depreciation and exemption from income tax on dividends or profits that are reinvested locally.