Argentine generator authorized to build 7km stretch of power line

Argentina’s federal government gave generator Pampa Energía the green light to build a 500kV power line to dispatch output from its under-construction 140MW Pepe VI wind farm in Buenos Aires province.

Work involves constructing, operating and maintaining 6.8km of line to connect the asset to existing company infrastructure that, in turn, is linked to concessionaire Transener’s section of the national grid.

Pampa will finance and build the project under rules established in law No. 24,065 of 1992 and resolution No. 179 of 1998. One stipulation is that there is no expectation, even in the long term, of third parties seeking to share it.

Authorities granted Pampa a 15-year concession for private use of the line, according to a resolution published in the official gazette. After that period, the link will be subject to the regulatory and rate regimes in force for the infrastructure it will connect to.

An associated public consultation was held last year.

Pepe IV has been authorized to enter the wholesale energy market. The first and second phases, for a total of 140MW, are due for completion in the second half of this year.

Pampa has previously said it aimed to expand the park to 300MW eventually. Pepe VI targets the Mater term market, where the likes of manufacturers ink private power purchase agreements with renewables generators. 

Grid congestion, along with access to financing at competitive rates, constitute headwinds for the expansion of Argentina’s fleet of wind and solar PV parks. 

Argentina's mining and hydrocarbons sectors, where market players are looking at emissions management, are seen presenting opportunities for power generators.

Click here to read the resolution