Snapshot: Tierra del Fuego’s electric power investment plans

A bill authorizing Argentine province Tierra del Fuego to assume US$141.5mn, or the equivalent in other currency, in debt to finance electric power investments has come on to the statute books, local press reported.

The bill was given the green light by the wind resource-rich province’s legislature last month.

The loans, to be disbursed in 2023-27, have been lined up with multilateral development institutions CAF and the Asian Infrastructure Investment Bank. 

The money will be used to support the isolated far south province’s energy transition program, the legislation states.

Objectives of the program are increasing installed capacity and generation as well as reducing the cost of supply, fossil fuel consumption and greenhouse gas emissions.

Officials are targeting some funds for the existing generation park, where several thermoelectric units are deemed to be in “critical condition.” According to local press, US$70mn will be used to expand a plant in Ushuaia and for upgrades at a power station in Tolhuin, among other initiatives. 

The province relies on three thermoelectric plants for all its electricity: one in Ushuaia operated by the provincial energy department, one in Río Grande operated by the Río Grande electricity cooperative and one in Tolhuin operated by the provincial energy department. Tierra del Fuego is not connected to the national grid and power is distributed via local systems that are not connected to each other. 

The rest is earmarked for a wind park that will serve Río Grande. The planned farm will inject 156GWh/y, reducing consumption of natural gas by around 47Mm3/y. The text cites the financial impact of purchasing gas for generation. 

“To date, no wind project has materialized to leverage this resource in such a way that it adds renewable electricity and reduces gas consumption, considering that the province has world-class wind resources, with potential to achieve capacity factors of over 50% across a large part of the territory,” the text states.

Last month, the province’s lawmakers also approved a climate change adaptation and mitigation bill, which calls for an associated provincial plan. 

A green hydrogen plant that leverages wind resources is planned for Tierra del Fuego. 

In related power sector news from Argentina, La Pampa province said it would invest 427mn pesos (US$2.36mn) in a new transformer station that will improve service quality for some 4,700 users. 

Also, developer 360 Energy Solar sought authorization for its 13MW solar project Cañada Honda IV, in San Juan province, to enter the wholesale power market. 

Elsewhere, power sector regulator Enre authorized developer Parque Solar Cura Brochero to connect a 17MW solar plant of the same name to Córdoba province energy firm Epec’s 66kV system. Enre also gave the company the green light to connect 8MW – targeting the Mater term market – to the transmission network. 

In the wind segment, Enre greenlighted a request to access transmission capacity, sought by transmission firm Transener on behalf of developer Luz de Tres Picos, which wants to connect the first phase of Buenos Aires project Vivoratá.