Argentine generator preparing US$145mn combined-cycle conversion work

Argentine electricity generator Central Puerto expects to break ground in January on a US$145mn thermoelectric project. 

Work involves converting to combined-cycle the Brigadier López power plant in Santa Fe province, the company’s Q3 results call was told. The project will ramp up capacity of the 281MW plant to around 400MW.

Construction is due to take around 20 months. The company is finalizing negotiations with an EPC contractor, according to executives. 

The expansion will consolidate Central Puerto’s position as Argentina’s biggest power company by generation and installed capacity, a status acquired following the acquisition in October of the 105MW San Juan province solar park Guañizuil II A and, last half, 75.7% of Buenos Aires province’s 2.3GW thermoelectric plant Central Costanera.

The company’s installed capacity stood at 7.11GW in 3Q23, up 48% year-on-year. Capacity corresponded to thermoelectric (5.29GW), hydropower (1.44GW) and wind power (374MW).

POWER AUCTION, M&A

Central Puerto and Central Costanera are also participating in the regulated power supply auction TerCONF. Bidders are awaiting award decisions. 

Central Puerto offered several projects: 93MW of gas turbine capacity in Mendoza province at a price of US$19,650/MW a month (CT LDCU 2x0); 218MW of gas turbine capacity in Buenos Aires city at a price of US$19,800/MW a month (CT PN 4x0); and 47MW of gas turbine capacity in Mendoza at a price of US$19,651 (CT LDCU 1x0).

Meanwhile, Central Costanera offered 313MW of gas turbine capacity in Buenos Aires city, at a price of US$19,100/MW a month (CT Constanera 1x0 4000F); and 202MW of gas turbine capacity in Buenos Aires, at a price of US$18,000/MW a month (CT Costanera TG11 CBA BEX).

Central Puerto is looking at several renewable projects, but the process is in the “early stages,” investors were told.

PAYMENTS

For payments under Argentina’s base energy power remuneration framework, denominated in pesos, Central Puerto is urging authorities to implement a mechanism that automatically adjusts rates to inflation. 

As things stand, the company holds quarterly rate negotiations with the federal energy department. Annual inflation is running at around 140%. An associated end-user rate scheme is also pending.

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In related power sector news, the federal energy department has tweaked distributed generation rules corresponding to law No. 27,424.

The move follows a recommendation to incorporate technical requirements for low and medium-capacity wind power installations into the regulatory framework. 

Capacity installed under the law is around 27MW of solar PV, corresponding to around 1,450 user-generators. Capacity of around 15.5MW is in the pipeline.

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Also in Argentina, hydrocarbons company Capex acquired renewables firm 4Solar, which is currently developing solar park La Salvación in San Luis province.

Targeting the Mater term market, La Salvación has secured 20MW of transmission priority dispatch capacity (5MW in one auction, 15MW in another) from wholesale power market administrator Cammesa, a regulatory filing sent to securities commission CNV said.

The plant is due online in October 2025.

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Argentina’s power sector regulator Enre is seeking a party to carry out transmission rate review work.

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Meanwhile in Chile, the government has established a plan for the allocation of public land for a total of 13GWh of energy storage projects, local newspaper Diario Financiero reported. 

A government auction of storage systems in planned. The private sector is already carrying out projects and increased clarity over remuneration may accelerate investment next year.