Argentina transmission priority dispatch auction draws 60 projects

Argentina’s wholesale power market administrator Cammesa received more than 60 projects in its latest transmission priority dispatch auction, which corresponds to 3Q23.

Companies presented new projects along with ones in the construction or operational phase. Associated installed capacity is 6.69GW, with the biggest project being RPG Yuncon's 540MW wind farm Yuncon, planned for Neuquén province. 

Priority dispatch is granted to projects geared to private power purchase agreements (PPA) between generators and offtakers, such as manufacturers. 

Cammesa is offering standard priority dispatch, known as Mater Pleno, and a new type, known as Mater Reference A.

Under Mater Reference A, introduced via a rule change in May, Cammesa can award priority dispatch along congested transmission corridors to Mater projects, on the understanding that some associated output may be curtailed.

Several projects also take advantage of another change that allows developers to carry out grid work to increase transmission capacity. Grid work is proposed by companies Energy Point, Genneia, Windenergy Argentina, Luz de Tres Picos and YPF Luz.

Mater has been driving growth of the country’s installed wind and solar capacity amid an absence of regulated power supply auctions – which have only recently resumed via RenMDI – but a lack of transmission capacity is whipping up headwinds. Demand for private PPAs from corporates is healthy, driven by factors including price and supply security, decarbonization and compliance with local renewables targets.

Argentine renewables chamber Cader is preparing, via a multi-stakeholder process, a legislative proposal for the country's next government. A chief hurdle is access to finance, Cader says.

Cammesa is due to make capacity award decisions by the end of the month.

Details of the projects can be seen in the Documents box in the top right of the screen.