Argentina creates fourth hydropower company ahead of planned concession auction

Argentina announced the creation of a fourth hydropower company amid plans to eventually re-offer multiple concession contracts to bidders.

The company – jointly owned by state firms Energía Argentina and Nucleoeléctrica Argentina – will be known as Cerros Colorados Hidroeléctrica Argentina, according to a notice in the official gazette.

The purpose of the firm is to temporarily take the reins of the 450MW Planicie Banderita power plant from Cerro Colorados, which was recently acquired by Aconcagua Energía when it purchased power firm Orazul Argentina.

The Cerro Colorados concession contract technically expired in August 2023 but was extended to this August.

The move comes amid plans to transfer assets to the State and then eventually auction new operating contracts. 

The creation of three firms was announced earlier this week, corresponding to three concession contracts expiring in August and December following extensions.

Neuquén province, along with neighboring Río Negro – home to the facilities – has previously requested an active role in the administration of the plants.

Other contracts are due to expire over the coming years. In a related development, authorities in Mendoza province recently gave a 12-month extension to the operating contract held by Hinisa for the Los Nihuiles system. The original 30-year contract had expired on June 1.