Snapshot: Argentina's call for expressions of interest in renewable energy generation, storage

Argentina is sharpening its focus on adding renewable power generation and storage capacity to reduce forced generation and, in turn, consumption of fossil fuels.

Officials are targeting parts of the country that rely the most on uneconomic power dispatches from diesel-fired plants.  

The federal energy department, in conjunction with wholesale power market administrator Cammesa, has launched a call for expressions of interest. Cammesa has produced an associated report and set up a dedicated web portal for the process.

Expressions of interest are due by the end of June. The proposed projects will be analyzed by Cammesa and then sent to the federal energy department, where they may be advanced under regulatory frameworks, according to a resolution. The call is open to both public and private sector players. 

A key objective of the process is to spur the development of “new renewable energy projects and storage systems in nodes or zones of the transport or distribution network that require forced generation,” the Cammesa report reads.

When forced generation is not required, output from renewables plants could substitute thermoelectric production, it adds. The report looks at nodes where local generation is needed.

Transport capacity is available in and around the upper east of the country, according to the report. This area, along with the northwest, is also home to many forced generation hot-spots.

Rising global energy costs and increased demand for liquid fuels have sharpened the focus of cash-strapped Argentine authorities on reducing fuel consumption in the generation park.

Overall, Argentina needs to build new transmission lines to help support continued growth in renewable power generation from the parts of the country that have the largest resources: the windswept southeast and the sun-drenched northwest. A key problem is the large distances between these hubs and demand centers in and around Buenos Aires province. 

Argentina also has a goal, established in law, of generating 20% of electricity from renewables by 2025. Some corporate electricity users must also hit this goal, which is helping drive demand for clean sources.

Renewables covered 15.9% of demand in April, up from an average of 13% in 2021. Wind is the chief technology used. 

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In April, Argentina generated 10,449GWh. Of this, thermal plants accounted for 5,993GWh (57.4%), hydroelectric plants 2,185GWh (20.9%), nuclear 658GWh (6.3%), and renewables 1,614GWh (15.4%), according to Cammesa data.

Thermoelectric generation was down in April due to increased output from other technologies, with generation from plants equipped with diesel engines dipping 30% year-on-year in April to 136GWh. Of the fossil fuels consumed by the grid in April, diesel accounted for 11%, natural gas 79.9%, fuel oil 4.7% and coal 4.1%.

Diesel consumption reached 144,000m3 in April, down from 163,000m3 in the same month of last year, but higher than the 3,000m3 burnt in April 2020. An aggravating factor has been lower hydroelectric output, stemming from a lack of rainfall. 

In related news, the federal energy department has amended rules governing the electric power market. Under the changes, contained in a resolution, wholesale power market distribution agents and public distribution service providers can – to obtain power for their large users – enter into supply contracts directly with renewable energy generators. 

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