Argentina's disdain for renewables

Argentine President Alberto Fernández's administration continues to disdain renewable energy. 

In its 14 months in power, the government has not moved forward with the contracts awarded in the RenovAr tender program and in the Cammesa priority awarding rounds, which have been on hold for the past two years despite reaching financial close, garnering equipment, starting works and setting commercial operation start dates.

Furthermore, the development of 23 wind farms totaling 1,012MW and 47 solar parks totaling 1,070MW have been halted since the 2018 currency crisis.

The last sign of renewals low standing in the totem pole of government priorities came in late February, when the energy department canceled two tenders for the acquisition and installation of solar panels at 406 rural schools in the provinces of La Pampa, Santiago del Estero and Salta.

Both auctions, which involved investments of US$20.8mn, were pending awarding by the government, as bids were opened in late 2019 before then-president Mauricio Macri left power.  

Energy secretary Darío Martínez voided the tenders, which were part of the Renewable Energy Project in Rural Markets (Permer), due to “reasons of opportunity, merit and convenience.”

In September 2019, the renewable energies undersecretariat had received eight offers for the Permer solar panels and installations in Salta, and in November nine offers arrived for schools in La Pampa and Santiago del Estero.

In the first tender, Coba, Newsan-Gamma Solutions, Mega, Coradir, Sistemas Energéticos-VZH, Todo Obras, Proyección Electroluz, and Tre Perú presented offers.

The Macri government had launched this process in July 2019 with a budget of US$13.5mn for PV kits and installation in 260 rural schools in Salta.

In the second tender, Proyección Electroluz, Tre Perú, Coba, Argencobra, Coradir, Best Hospitals, Newsan-Gamma Solutions, Sistemas Energéticos-VZH, and Evarsa took part.

The budget for supply and installation was US$7.34mn covering 146 schools in La Pampa and Santiago del Estero.

Funding would have been provided by the International Bank for Reconstruction and Development, a World Bank unit. A US$200mn loan to support Permer had been agreed to with the government in 2015.