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Argentina’s booming wind energy market provides opportunities for Finnish companies

Argentina’s booming wind energy market provides opportunities for Finnish companies

Dec 21, 2016
Renewables & smart grid
Wind energy
Argentina

Argentinian government has created a successful framework to attract private wind energy investments to the country.

Currently, Argentinian power generation base is relatively expensive and insufficient. The country has a priority to secure sufficient power supply to meet the growing demand, while simultaneously lower the cost of electricity and decrease CO2 emissions.

10 GW in 10 years

Hence, Argentina has plans to build up 10 gigawatts (GW) of renewable energy within the next ten years. Behind the ambition is a recent law that set a 20 percent renewable energy mandate on total power demand by 2025. 3 GW of the additional capacity will be installed by 2018. In line with Argentina's mandate to reduce CO2 emissions, USD 15 billion will be needed for renewable energy generation.

The decision to move towards renewables is hardly surprising; Argentina has optimal conditions especially for wind and solar power. The southern parts of the country are at the helm of the world's strongest and most constant onshore wind resources, resulting in capacity factors between 35-50%.

In October 2016, the first auction comprised the contracts for the first GW. In the auction, ultimately awarding 1,1 GW, 700 MW of the contracts were directed for wind energy with an estimated average price of USD 59,4/MWh. The overall offering of private projects for wind and solar energy generation was over 5 GW. In November, the government awarded additional 1,3 GW of renewables, including 760 MW of wind energy. The next wind energy auction is planned for 3-4Q/2017 – and respectively following years to complete 10 GW of renewables by 2025.

Potential of Finnish offering

As of now, the Finnish wind energy cluster is not well-known in Argentina. Thus, marketing and sales work must be done with the technical and commercial decision makers of Argentinian end users and EPC suppliers.

However, Finnish knowhow to operate in cold temperatures provides a considerable asset for the Finnish providers, since the wind parks in Argentina tend to be installed in southern parts of the country, where the wind conditions are the best and where the temperatures are the lowest.  

Besides, there are apparently no local content requirements in Argentinian wind energy investments.

Next steps: Finpro/Cleantech Finland will organize a webinar Thursday 12 January 2017 to present the market opportunity to Finnish suppliers and discuss the next steps and market entry actions, which may include buyer meetings in Argentina 1Q/17.

Get all Team Finland cleantech market opportunities in one place here.

Interested in this opportunity, please contact:

Matti Landin

Trade Commissioner

Matti.Landin@finpro.fi

Companies in the sector