Argentina's 500MW storage tender launched as industry calls for grid master plan

Argentina published the schedule for a 500MW Buenos Aires metropolitan area energy storage tender amid an industry call for a broader master plan for the grid.

The federal energy department had announced the tender – expected to attract some US$500mn in private sector investment – earlier this week. 

Wholesale power market administrator Cammesa has kicked off the process. According to the schedule published on its website, bids are due May 19 with award decisions scheduled for June 27.

Click here to see the schedule and bidding documents. 

The objective is to bolster the grid in and around the capital, where demand spikes can strain an already-creaking system. 

The call, branded Almacenamiento AlmaGBA, is framed as a more agile solution than power line construction – a lengthier and more complex process.

The systems would be used to cover short-duration capacity requirements and provide fast response reserve services. Other uses encompass voltage control and reactive power management.  

The energy department has invited the provinces to consider similar initiatives targeting critical nodes identified by Cammesa.

Wind and solar energy-rich Argentina is unlikely to hit an end-2025 target, established in law, of obtaining 20% of electricity from non-conventional renewable resources. 

Among headwinds is limited spare capacity on transmission lines to transport clean energy to demand hubs, a consequence of decades of infrastructure underinvestment. 

Argentine renewables association Cader told BNamericas the storage tender was positive as a means to mitigate the fallout from a lack of grid investment, underscoring the necessity of creating a wider power infrastructure strategy with a medium and long-term focus.

“Storage should be part of a structured process of development of the electrical network, not a band-aid, not an isolated initiative,” said Cader steering committee member Marcelo Álvarez.

Industry stakeholders and observers are awaiting greater clarity on the government's plans for transmission, where the chief demand drivers are critical grid works and works associated with certain sectors of the economy, such as mining. A key challenge surrounds financing the work. 

In terms of using storage for energy shifting, demand is restricted in Argentina. The country has a relatively large gas-fired and hydroelectric park, and variable output renewables account for under 20% of power generation. This is below the roughly 30% threshold when demand for storage typically starts to build. 

Argentina has nevertheless taken baby steps toward integrating storage. 

Cammesa launched a 2023 call for expressions of interest, AlmaMDI, while a wind-storage project and three solar-storage initiatives, all 20MW or under, were awarded contracts in regulated supply auction RenMDI.