Argentina raises diesel import limit as thermal output grows

Argentina has authorized an increase in imports of diesel this year.

Via a decree, the government lifted the ceiling on imports of the fuel by 700,000m3.

The decree cited the need to cover demand spikes by the electricity generation sector.

As in neighboring Brazil, Uruguay, Paraguay and Chile, low precipitation levels are impacting output from hydroelectric power plants, central players in Argentina’s generation mix. Chile, for example, is bringing a shuttered coal plant, operated by AES Andes, back online.  

Argentina’s hydroelectricity production in June was 1,777GWh, down 34% year-on-year, according to wholesale power market administrator Cammesa. 

Generation from diesel-fueled units was 264GWh, up 81.1%. Consumption of diesel for generation has been trending up since February.

Overall thermoelectric generation in June was 8,267GWh, up 25.7% year-on-year.

Argentina has around 10.8GW of installed hydroelectric capacity and around 1.65GW of installed diesel-fired capacity.

Total installed capacity stands at around 42.5GW. Gas-fired plants account for about half. Hydroelectric, nuclear, non-conventional renewable energy and diesel plants account for the rest.