Solar PV roundup: Argentina 305MW Rigi application, Uruguay 134MW permitting

Rigi application

Argentine power generator YPF Luz, a unit of state-controlled hydrocarbons company YPF, wants to build a US$200mn solar PV project under the Rigi investment incentives regime.

The 305MW project, branded El Quemado, was submitted to federal authorities for Rigi inclusion evaluation, becoming the first to do so, a statement said.

Planned for Mendoza province, the project would be built in two phases, the first 200MW. YPF Luz recently said construction would start this month. 

Targeting the Mater term market, El Quemado has been awarded 30MW of standard transmission priority dispatch capacity and 120MW of dispatch capacity known as Reference A. Under Mater Reference A, introduced via a 2023 rule change, wholesale power market administrator Cammesa can award priority dispatch on congested transmission corridors to Mater projects, with the understanding that some associated output may be curtailed (8% probability of curtailment). 

YPF Luz obtained the project in 2023 from the province's energy company, Emesa. The 200MW first phase of El Quemado is due online in 1Q26.

In parallel, parent YPF said it would seek Rigi benefits for US$2.5bn oil pipeline project Vaca Muerta Sur, due to bring 360,000b/d of dispatch capacity online by end-2026. The project is due to be presented to federal officials in November.

The government recently published Rigi implementation rules. Rigi establishes a series of tax and exchange rate benefits and stable rules of the game for 30 years. 

Uruguay permitting

Company Arapey Hive Solar submitted environmental evaluation documents in Uruguay for a 134MW solar PV project.

Planned for Salto department, the initiative, branded the Arapey solar PV park, involves building a first phase of 17.2MW followed by a second of 117MW.

Work involves building two transmission links, of around 6km, to connect each phase, respectively, to the national grid operated by state power company UTE.

Arapey had originally presented the project to environmental authorities last year.

The project will use Trina Solar panels, according to documents filed with the Uruguayan environment ministry.

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Last year wholesale power market regulations were modified to recognize a part of the firm capacity of wind and solar parks, opening the door for power purchase agreements (PPAs) between private players. A pioneering solar PPA was signed, and projects have entered the environmental review phase.

Nevertheless, the capacity entry bar to the nonregulated market was raised to 1,500kW from 200kW, limiting the field of potential participants to large industrial consumers.

Uruguay is working to increase electrification of the economy, with grid connection, distributed generation, electromobility and smart meters key pillars. An associated goal is weaning the heavy transport sector, particularly forestry trucks, off diesel and using green hydrogen instead. 

Energy transition is poised to remain a chief pillar of state policy in Uruguay, regardless of which of the two candidates becomes the next president following a runoff vote scheduled for November 24. Center-left candidate Yamandú Orsi will face off against conservative Álvaro Delgado after neither secured more than 50% of the votes in the first round held on Sunday.