Argentina priority dispatch auction draws 12 renewables projects

Twelve Argentine renewable energy projects sought transmission priority dispatch capacity in an auction process corresponding to 4Q22 – down from 35 in the previous round.

The biggest project presented in the 4Q22 auction was the 202MW San Luis Norte wind farm. The project was granted 36MW of capacity in a 2Q22 process but was unsuccessful in an auction for 3Q22. 

Located in San Luis province and being built by construction firm Semi, the project belongs to Generación Eléctrica Argentina Renovable I, a unit of energy firm PCR and steel company ArcelorMittal Acindar. 

Wholesale power market administrator Cammesa is due to announce by January 17 whether the 4Q22 auction will go to a tiebreak round. This happens when insufficient transmission capacity is available. Capacity is scheduled to be awarded by January 27. Some of the projects have participated in previous auctions. 

Transmission priority dispatch is assigned to projects looking to participate in the Mater term market, where generators supply power under contracts with large users. Corporations with an eye on their green credentials and keen on securing supply at a favorable price are driving demand for electricity from renewable sources.

Argentina needs to build out transmission capacity to help support continued renewables growth. Some transmission corridors are heavily congested, limiting the addition of new grid-connected renewables plants. Multilateral IDB recently approved a US$200mn decarbonization loan to support grid investment.

Amid the transmission capacity restrictions in some corridors, Argentina’s federal government last year began a process to auction supply contracts. Officials want to build out renewable energy capacity near centers of consumption, with a key aim being to reduce diesel-fired forced generation. 

The auction was originally planned for late 2022, the government has stated previously. According to details on a dedicated portal on Cammesa's website, it has not yet got underway, 

PROJECTS SEEKING PRIORITY DISPATCH IN 4Q22 AUCTION PROCESS

Project: San Luis Norte (wind)
Applicant: Generación Eléctrica Argentina Renovable I
Project capacity: 202MW
Maximum capacity sought: 35MW
Province: San Luis
Transmission corridor: Centro

Project: Capiz I (solar)
Applicant: Trancurá Energía
Project capacity: 20MW
Maximum capacity sought: 20MW
Province: Mendoza
Transmission corridor: Cuyo

Project: Intermepro Gen I (solar)
Applicant: Intermepro Generación I
Project capacity: 100MW
Maximum capacity sought: 35MW
Province: La Rioja
Transmission corridor: NOA

Project: ER de la Esperanza (solar)
Applicant: Energías Renovables de la Esperanza
Project capacity: 7.5MW
Maximum capacity sought: 7.5MW
Province: San Luis
Transmission corridor: Centro

Project: ER Los Nogales (solar)
Applicant: Energías Renovables Los Nogales
Project capacity: 9.5MW
Maximum capacity sought: 9.5MW
Province: San Luis
Transmission corridor: Centro

Project: Aconcagua (solar)
Applicant: Aconcagua E.R.
Project capacity: 25MW
Maximum capacity sought: 5MW
Province: Mendoza
Transmission corridor: Cuyo

Project: General Levalle I (wind)
Applicant: Levalle Eólico I
Project capacity: 64.5MW
Maximum capacity sought: 17MW
Province: Córdoba
Transmission corridor: Centro

Project: El Carrizal (solar)
Applicant: Surland Cuyana
Project capacity: 39.6MW
Maximum capacity sought: 25.0MW
Province: Mendoza
Transmission corridor: Cuyo

Project: Pocito (solar)
Applicant: Thinkable Energy
Project capacity: 5.03MW
Maximum capacity sought: 5MW
Province: San Juan
Transmission corridor: Cuyo

Project: Villa Angela (solar)
Applicant: Agro Industrias Baires
Project capacity: 100MW
Maximum capacity sought: 30MW
Province: Chaco
Transmission corridor: NEA

Project: Pampa del Infierno (solar)
Applicant: Energías Renovables Las Lomas
Project capacity: 130MW
Maximum capacity sought: 25MW
Province: Chaco
Transmission corridor: NEA

Project: Las Catitas Hive Mza (solar)
Applicant: Las Catitas Hive Mendoza
Project capacity: 30MW
Maximum capacity sought: 30MW
Province: Mendoza
Transmission corridor: Cuyo