Argentina introduces measures to help free up power transmission capacity

Argentina’s federal energy department established a mechanism to help free up electric power transmission capacity.

The measure targets renewable energy projects that stalled, and those that have registered advances, following the economic crisis that erupted in 2018.  

Argentina awarded supply contracts in rounds 1, 1.5, 2 and 3 of renewable energy auction RenovAr.

Via a “new alternative for the voluntary termination of the contracts and the establishment of new conditions to extend or modify the contracted power, transport capacity will be released that may be made available to new projects,” the energy department said in a statement.

The move will assist in efforts to hit a target, established in law, of obtaining at least 20% of electricity from renewable resources in 2025.

Projects that are voluntarily withdrawn must make a one-off payment: US$17,500 per MW for wind and solar plants and US$12,500 per MW for biogas, landfill biogas, biomass and small hydroelectric projects.

Argentina needs to build out transmission capacity to allow a major ramp-up of renewables. Amid factors such as restricted access to financing and macroeconomic uncertainty, some existing renewable projects with capacity assigned have stalled.

Wholesale power market administrator Cammesa recently awarded dispatch priority to seven renewable generation projects.

The projects are those seeking to participate in Mater, a term market that allows large users to directly contract power supply from renewable players.

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Picture credit: Argentine government