Argentina to invest $5bn in renewable energy by 2018

Argentina to invest $5bn in renewable energy by 2018

Argentina plans to spend US$5 billion in investments in renewable energy by 2018, government officials reported.

Its goal is to decrease energy deficit and hope to expand output from Vaca Muerta, the shale gas field in the Neuquén Basin.

The country’s Patagonian plains and northern subtropical lands also create perfect conditions for generating renewable energy, experts say.

Renewable energy only makes up around 1 per cent of the country’s power generation, while in Brazil it makes up 8 per cent. Argentina’s government enforced a law this month advocating renewable energy must rise to 8 per cent by 2018.

“The first goal is for 8 per cent, requiring around $5 billion of investment to achieve between 2,000 and 3,000MW,” said Sebastian Kind, Argentina’s undersecretary for renewable energy. “The law aims for a 20 per cent share by 2025, which means 10,000MW requiring between $15 billion and $20 billion.”

The country has suffered exhausting energy shortfall since 2011 and it essentially has no solar power and only a couple of wind farms.

The law will create a trust fund to guarantee financing for the project and offers multiple fiscal aid for investors in renewable energy.

Argentina will conduct its first power auction since the law was approved last May.