Industry: Argentinian renewables paying the price of political volatility

Facebook
Twitter
LinkedIn
Reddit
Email
Image credit: Los viajes del Cangrejo / Flickr

Political and economic uncertainty is beginning to bite in Argentinian renewables, putting sticks in the wheels of the market that delivered this year one of Latin America’s largest solar projects.

Addressing the new government of Alberto Fernández this week, renewable industry representatives warned that months of political u-turns and economic stagnation are crippling the deployment prospects for solar, wind and others.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

According to green energy association CADER, renewable investors have taken a step back after witnessing Argentina’s descent into currency controls under Fernández’s predecessor Mauricio Macri in September, followed by tighter curbs when the former won October’s general polls.

Local and foreign financiers key to the renewable sector have, CADER said, “decided to freeze any progress in evaluating requests for funding, and even executing already authorised financing, as a result of the uncertainty driven by the aforementioned context.”

The centre-left government of Peronist president Fernández – elected on promises to rebuild Argentina’s standing before creditors and allies with a pragmatic touch – could help the renewable industry by granting more time to the winners of the latest auction in July, CADER said.

“The prorogue we ask for will significantly increase the odds that both the projects developed by CADER members, and those from other applicants, will reach sufficient clarity over how the installations will be financed,” the association said.

Macro woes end Macri’s year of solar victories

The tender CADER is now requesting more time for is the third round of Argentina’s RenovAr programme, which awarded 259.08MW in contracts in July to a roster of 38 winners including solar, wind, biomass, biogas and small hydro power projects.

The so-called MiniRen tender – thus named because of its focus on 0.5-10MW schemes – granted 96.75MW of the total to 13 solar projects, down from initial bidding volumes of 128MW. At average tariffs of US$57.59/MWh, PV narrowly passed wind to become the cheapest MiniRen source.

The 13 solar winners of 20-year PPAs with Argentina’s power market administrator CAMMESA have, as their wind counterparts, two full years to ensure they reach commercial operations. For their part, biomass, biogas and small hydro face a slightly more lenient deadline of three years.

Under Macri, small-scale tendering efforts have come alongside feats on the large-scale side. In October, the now former president personally hailed the completion of the first 300MW of the Cauchari complex in the Jujuy province, with plans to hit 500MW by the end of 2020.

For Macri, however, the solar victories were accompanied by a major decline of Argentina’s macro economic fortunes. In the space of a year, the president had to request a US$56 billion IMF bailout as the country faced spiraling debt levels, steep inflation rises and GDP contractions.

Across the Andes mountains, neighbour Chile has seen a similar mixture of renewable milestones and political unrest. The country is witnessing an utility-scale PV surge around the Atacama Desert but had to give up playing host to the annual UN climate summit after anti-government protests.

The prospects and challenges of Latin American solar and storage will take centre stage at Solar Media's Energy Storage Latin America, to be held in Colombia on 28-29 April 2020.

21 October 2025
New York, USA
Returning for its 12th edition, Solar and Storage Finance USA Summit remains the annual event where decision-makers at the forefront of solar and storage projects across the United States and capital converge. Featuring the most active solar and storage transactors, join us for a packed two-days of deal-making, learning and networking.

Read Next

September 4, 2025
India’s Goods and Services Tax (GST) Council, the joint forum of the Centre and States, has reduced the GST rate on renewable energy components from 12% to 5%. 
September 2, 2025
Scatec has signed a 15-year power purchase agreement (PPA) with BTG Pactual Comercializadora de Energia to develop a 130MW solar project in Colombia.
September 2, 2025
Spanish independent power producer (IPP) Grenergy has sold the fourth phase of its flagship solar-plus-storage project in Chile, Oasis de Atacama.
August 28, 2025
Latin America has the potential to unlock billions in clean energy investment if it aligns national policies with global sustainability goals and investor expectations.
August 22, 2025
AEMO has predicted the NEM will see a steady rise in renewable energy generation capacity, reaching 229TWh by 2035.
August 20, 2025
New South Wales, Australia's most coal-dependent state, will transition from 40% to 90% renewable energy by 2035, according to grid operator Transgrid's latest planning report.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines