BMI View : An u nstable economic environment and poor access to project financing have left Argentina's renewables sector notably underdeveloped relative to the country's extensive natural resources and its regional peers. However, we believe that the business-friendly economic reforms pushe d by the newly elected Argentina's president Mauricio Macri will facilitate the sector's expansion over the medium term. Despite these improvements, we do not see non-hydro renewables playing a significant role in the country's power mix during the coming decade.
|e/f = BMI estimate/forecast. Source: EIA, National Sources, BMI|
|Generation, Non-Hydropower Renewables, TWh||3.168||3.299||3.995||4.349||4.664||5.020||5.389|
|Generation, Non-Hydropower Renewables, % y-o-y||1.650||4.156||21.079||8.869||7.247||7.627||7.358|
|Capacity, Non-Hydroelectric Renewables, MW||918.6||1,010.3||1,304.7||1,432.7||1,547.0||1,663.2||1,787.3|
|Capacity, Non-Hydroelectric Renewables, % y-o-y||7.3||10.0||29.1||9.8||8.0||7.5||7.5|
Latest Updates and Structural Trends
We hold a positive outlook for the Argentine wind power sector over the coming decade. Continued commitment to the sector from Chinese investors and infrastructure companies, a more attractive business environment under a Macri presidency and a supportive regulatory framework for renewables will translate into stronger growth in installed wind power capacity through to 2025.
Argentine power firm Genneia will spend about USD500mn on wind energy in Chubut Province over the next five years, according to Provincial Governor Mario Das Neves (SeeNews). The plan covers 100MW of capacity through the expansion of the 77.4MW Rawson wind plant and installations in the city of Trelew.
In March 2016, the government of the Argentine province of La Rioja signed a memorandum of understanding (MOU) with German investment group Photovoltaic Park for a USD1.4bn solar PV project with the total capacity of 700MW.
Chinese firms Power Construction Corporation of China (POWERCHINA) and Shanghai Electric Power Company (SEP) plan to support an up-to-300MW solar scheme in Jujuy Province, Argentina.
In February 2016, Dutch renewable energy firm Gigawatt Global signed a preliminary agreement with authorities in Argentina's Mendoza province to carry out a USD740mn solar power-photovoltaic (CSP-PV) hybrid project. The scheme involves building a USD520mn, 110MW CSP park and a USD220mn, 100MW PV plant, reports Telam.
The Argentina Renewables Report researched at source contains BMI Research's assessment of the current renewables market in Argentina. The report also contains historical data together with forecasts to end-2018 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-2018 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 Rankings
BMI's Renewables Business Environment Rankings provide fully comparable Risk-Reward Rankings aimed at investors in the regional renewables market.
The rankings methodology makes sophisticated use of various industry, economic and demographic data point.