07 Jul Argentina to launch innovative renewables programme
Argentina is planning to launch an innovative renewable energy programme in August with a public auction to buy 1,000MW of renewable energy, according to Climate Action.
The “RenovAR” initiative will include a green trust fund to ensure that potential investors have necessary confidence and security.
According to Climate Action, the programme is in line with the country’s target of having 20% of renewables in the national energy mix by 2025, compared to its current 1.8%.
The government plans to add 600MW of wind power, 300MW of solar, 65MW of biomass, 20MW of hydroelectric plants and 15MW of biogas.
The “Trust Fund for Renewable Energy” (FODER) has been established to support the country’s new programme, generating payment guarantees for all tendered projects as well as project funding. It has allocated the equivalent of US$778 million, according to Climate Action.
In September 2015, Argentina passed a law setting up the country’s energy transition aiming for 8% renewable energy by the end of 2017 and 20% for 2025.
“In order to implement the energy plan, the law also sets up fiscal and local supply chain incentives for renewable energy projects,” explained Climate Action. “For RenovAR, five factors are observed to decide which bids are accepted including price, location and interconnection noted, the committed date to reach commercial operation, compliance with the requirements in the bid documents and compliance with the requirements to obtain the certificate of inclusion.”
Winning bids will be announced on 28 September.