BMI View: This quarter we have upwardly revised our solar capacity and generation forecasts for Argentina, on account of the recent positive developments within the industry which are likely to spur on the country's solar expansion programme. Overall however, we remain relatively bearish towards the Argentine renewables industry, as despite some improvements of late, the business environment remains largely unappealing for investors and project finance continues to limit the growth potential of the market.
Argentina's positive regulatory framework for renewables on the surface looks appealing to investors. For example, the country has adopted an ambitious target of sourcing 8% of its electricity demand from renewables by 2016, offers various tax incentives to renewable developers, has implemented a feed-in tariff (FiT) programme, an energy auction system and a programme called GENREN. However, despite these attractive incentives, which in another market would typically have drawn in developers, there has been a notable lack of international investor interest in the Argentine renewables market. This was evidenced in July 2013, when it was announced that domestic utility Impsa was the sole bidder in the tender for the expansion phase of the Arauco I wind facility in the country's La Rioja province.
Recent developments within the renewables industry include:
It was announced in May that IMPSA was the only company that submitted a bid for a contract for the fourth phase of the Arauco I wind farm in the Argentine province of La Rioja. The company lodged a bid of ARS578mn (US$110.36mn) for the fourth phase, which will increase the total capacity of the plant from 50.4MW to 101MW.
Buenos Aires and its suburbs suffered a blackout in December 2013 after an unusually severe heat wave caused power demand to rise to record highs, overwhelming the power grid. The Argentine System of Interconnection reported on December 17 that power consumption reached 23,433MW, a new...
The Argentina Renewables Report researched at source contains Business Monitor International (BMI)'s assessment of the current renewables market in Argentina. The report also contains historical data together with forecasts to end-2017 covering electricity generation (TWh) and electricity capacity (MW).
The renewables sectors covered in the report include Wind, Solar, Geothermal, Tidal and Wave, and Biomass (See Table of Contents for exact coverage). The report also features details on government green energy agendas and funding opportunities, as well as presenting a detailed list of key renewables projects currently being planned or undertaken in Argentina, their capacity, the timeframe of construction and their current status.
The report discusses the various energy policies currently in force, including targets, subsidies and the relevant infrastructure developments or limitations which might impact on renewables growth, analysing the potential effects of regulatory changes in conjunction with the background macroeconomic outlook. Finally, there is a general overview of the competitive landscape in Argentina, together with a detailed summary of the main utilities and manufacturers present and their business operations.
BMI's Argentina Renewables Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with unique independent forecasts and competitive intelligence on the Argentina renewables industry.
- Benchmark BMI's independent renewables industry forecasts for Argentina to test other views - a key input for successful budgeting and planning in the renewables market.
- Target business opportunities and risks in the Argentina renewables sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in the country.
BMI Industry View
Summary of BMI's key industry forecasts, views and trend analysis covering the renewables market in Argentina, regulatory changes, major investments and projects and significant multinational and national company developments.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the renewables sector and within the broader political, economic and business environment.
BMI Industry Forecasts
Historic data series (2010-2012) and forecasts to end-2017 for electricity generation (TWh) and electricity generating capacity (MW) for each individual renewables sector present in the country.
These in turn are broken down into:
Electricity Generation: Overall capacity (TWh), growth % change year-on-year, KWh per capita, % of Total Non-Hydropower renewables generation, % of total electricity generation.
Electricity Capacity: Overall capacity (MW), growth % change year-on-year, % of non-hydroelectric renewables capacity and % of total capacity.
These forecasts are in turn supported by explicit assumptions, in conjunction with analysis of the key risks to the main forecast.
Business Environment Ratings
BMI's Renewables Business Environment Ratings provide fully comparable Risk-Reward Ratings aimed at investors in the regional renewables market.
The ratings methodology makes sophisticated use of various industry, economic and demographic data point.