Argentine province awards maiden solar project

Argentine province La Pampa has awarded a turnkey solar project – the first of its kind in the jurisdiction.

The board of state energy company Pampetrol issued the US$8.2mn project, which involves building the 7MW plant Victorica in the north of the province, to company Ingalfa.

Once built, the plant will become the first solar farm to inject power into the provincial system. Estimated project execution time is 270 days.

The second placed bidder was consortium Ambiente y Energía-Riva. An offer made by Powerchina Sucursal Argentina was rejected because many components were dollar-denominated, while a bid placed by consortium Teyma Abengoa-Chint Electric did not advance because of the large price tag proposed, the provincial government said in a statement.

Earlier this year Pampetrol – whose plans involve building other plants to tackle a supply deficit in the north of the province – launched a call for the submission of renewable energy project proposals.

In a 2020 decree, the province declared renewable energy and distributed generation of “strategic interest,” with the objective of creating a favorable environment to attract investment. The province has introduced tax benefits for associated projects.

Officials had previously tried incorporating a renewables plant into an oil block auction. 

La Pampa province has a strategic energy plan, a key pillar of which is wooing private investors.