Argentine generator outlines renewables push, US$500mn mining sector supply solution

Argentine power generator YPF Luz has a 420MW portfolio of renewable energy projects and is developing a grid connection solution for the mining sector, investors were told in a conference call.

Associated renewables project outlay is about US$500mn.

Around half of the 420MW project portfolio capacity is accounted for by the 200MW El Quemado I, whose construction was announced in July by YPF Luz.

Planned for Mendoza province, US$170mn project will be the company’s second solar park after Zonda I, operating in San Juan province.

A unit of state-controlled hydrocarbons firm YPF, YPF Luz is also building 155MW wind farm General Levalle. The US$260mn Córdoba province project is due for completion by year-end.

Meanwhile, 63MW Buenos Aires wind park Cementos Avellaneda is also under construction. With a price tag of US$80mn, the plant is due for completion in 1Q26.

Installed company capacity stood at 3.24GW in 2Q24, up 2% year-on-year, reflecting completion of a combined-cycle upgrade at the Central Dock Sud power plant in Buenos Aires province.

Mining sector

Amid demand for clean energy from mining projects in the country’s north, YPF Luz is developing a US$400-500mn supply project, the call was told.

“We are studying a project to provide an integrated solution for the mining companies, for the mining projects, via the construction of a high-voltage power transmission line in the north of Argentina connecting the mining projects to the national grid and particularly renewable sources in order to reduce their energy supply cost and carbon footprint,” CFO Pedro Kearney told investors.

In terms of supply, which would come from existing and future assets, batteries as well as thermoelectric units are being mulled. Solar capacity of up to 900MW is being considered along with wind turbines.

YPF Luz, open to bringing on board equity partners, expects to make a final investment decision by the middle of next year, investors were told.

Initial studies have been completed and the company is now working with local officials to conduct more, Kearney said.

Argentina’s biggest renewables player Genneia recently said it was working on proposals.

“A lot of industrial development is being seen in the north of the country, linked to mining demand, above all for lithium, globally, Marco Zazzini, technical manager at Chilean-Argentine energy consultancy Anabática Renovables, told BNamericas recently.  

“Given this potential, industrial zones, for extraction, are starting to be developed and these need supplying with electricity.”

A challenge for lithium and copper miners that are concerned about the carbon content associated with their future output is securing supply of low-emissions power. The task is not straightforward, given the altitude of some projects and their distance from population centers, combined with demand for steady supply.

The federal government's Rigi regime contains incentives for projects involving outlay of over US$200mn.

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