Cámara Argentina de

Energías Renovables

Annual Report 2018

Cámara Argentina de Energías Renovables C.A.D.E.R. is a non-profit association aimed at promoting the sustainable development of the energy
market from renewable sources, including bioenergy, wind power, solar power, geothermal power,
small hydroelectric plants and tidal power.
Executive Committee Founded in 2008, C.A.D.E.R. is a reference in the industry of renewable energy in Argentina, and it
In the Argentine Chamber of Renewable Ener-
2018-2019 gies (CADER) our aim is to forge bonds between
acts as a coordination and interaction body among a wide spectrum of actors: country authorities,
business community, society, trade unions, academic institutions. It is a key player which enables the
Assembly of December 12, 2017 companies of the sector, allowing its members to
share information and experiences related to the dialog for the current and future development of power enterprises.
market. We work with other similar entities so
that the national and provincial legislation evolves
President
Marcelo Álvarez
according to the growth of renewable energies in
Argentina.
Mission - Vision Goals
The committee directors meet every month to an-
Vice-president
alyze projects and proposals in order to develop Mission: To support and make sure that renewable • To strengthen the diversification of the
Oscar Balestro
different technologies. We invite you to join our energies and its members grow in Argentina. primary and electric power matrix through
working teams. the use of renewable energy sources, aimed
Secretary Vision: We have the natural resources and the
Agustín Siboldi experience needed to make renewable energies a at reducing the carbon footprint and energy

true source of sustainable and secure energy. intensity.

Committees and its directors
Deputy Secretary • To decentralize the generation by bringing it
Horacio Pinasco
closer to consumption.
Bioenergy Our values
Treasurer Julio Menéndez • To promote the development of regional
Omar Díaz economies.
Photovoltaics • Transparency • Commitment
Marcelo Álvarez and Sonia de Sales-Lisboa • To promote the development of a competitive
Regular Board Members • Professionalism • National and international
Solar Thermal national industry.
Guillermina Vidal representation of the sector
Pablo Grecco • Know-how
Sonia de Sales-Lisboa •To contribute to a more efficient
Wind management and administration model.
Alternate Board Members Oscar Balestro
Nicolás Bin Cornerstones • To promote the adequate planning and
Darío Febré Small hydro development of the necessary infrastructure.
Jorge Ayestarán Carlos Calderaro
• To boost the development of the market through • To deepen the integration of the electrical
Electrical Grids the representation of the sector and the promotion system with the neighboring countries.
Auditor Luciano Masnú | Jorge Ayestarán of a normative frame in the long term.
Luciano Masnú • To cooperate with the dissemination and
Tax and Legal Matters • To facilitate the development of business, human awareness of the efficient use of renewable
José Carlos Cueva | Omar Díaz
Alternate Auditor capital and infrastructure in the sector through energy in local communities in order to obtain
José Carlos Cueva Foreign Trade public-private articulation, companies, trade unions, social license.
Agustín Scornovacche customs departments and other involved actors.
• To ensure equal and transparent access
Financing • To communicate its principles to the society to the transmission and distribution
Florencia Balestro and Martín Dapelo through publications, workshops and debates. infrastructure.
Index

9 Renewable energies, a shift in the 87 Renewable energies: a state policy

paradigm of the energy matrix
93 Power generation panorama:
13 The RenovAr Program, a turning point contributions for a collective vision

23 Expectations on the advances 97 Bringing down myths

of the MiniRen Round

27 Term Market: the details

ANNEX
of a growing business

39 Wind Energy: status 101 The PPP project in relation

and next challenges to the Electricity Market

47 Photovoltaic Solar Energy: with falling

prices and the focus set on small-scale
104 Glossary
projects
105 List of partners 
53 Global Solar Council: the role of
Argentina in a worldwide sectorial
debate

57 Bioenergy: specific requirements and

positive externalities

65 Synergy between Nation, companies

and provinces: the challenges of
promoting the distributed generation

71 Sectorial meetings on renewable

energies: a great opportunity

73 Financing: sine qua non condition

for renewable energies

81 Transmission: a bottleneck that

requires decisions

83 Impact of the tax reform in renewable

energy projects
Renewable energies, a
shift in the paradigm of
the energy matrix
A rgentina is changing its energy matrix by tak-
ing advantage of the potential of renewable
energies. If we take into consideration the tenders
of the RenovAr Program and the Renewable En-
ergy  Term  Market (MATER), as well as the projects
awarded through the Resolution 202, about 6,000
MW should be generated in a relatively short period
of time. This challenge forces us to plan the devel-
opment of the industry with a comprehensive and
long-term perspective.
A shift into a cleaner and more sustainable matrix
shouldn’t be just a simple technological change. A
broad and successful strategy must be designed to
bring energy generation and consumption closer.
We want to insist on the enormous economic and
social benefits that this will bring to the country.
Marcelo Álvarez, President of CADER
New job positions will be created in all provinces, en-
ergy security will be ensured by diversifying the use
of renewable sources in each region and the capacity
of the 13.2 kV and 33kV power grids will be used.
We will provide support through the implementation
of this model, knowing that we will encounter the
typical issues that arise when a market is in the initial
stage of its learning curve. This model is supported
by the power of the plants under construction. It is
worth mentioning that the low prices involved in the
RenovAr Program got the attention of the market
and caused the expansion of other niches. In fact,
most decision-makers in the political sphere are cer-
tain that the sector is highly competitive.
This comprehensive perspective, involving big, me-
dium and small power plants, has been CADER’s
Annual Report 2018 9
 main focus since it started ten years ago in 2008. We
are proud to celebrate the first decade in the middle
of this dynamic debate about energy transition; a
debate that is still open and that has to be analyzed
more in depth.

As an institution, we take part in the exercises that

give a projection of the matrix towards 2040 and
2050 and we submit proposals in national climate
change meetings. In addition, we point out the crit-
ical aspects of the RenovAr Program that need im-
provement in the meetings of the sector, which are
attended by the members of the most important
Energy and Production organizations, the Argentine
President, government authorities of all the areas
involved, businesspeople and union members.

We also gather with and give ideas to key actors re-

lated to the industry: private and public banks, pro-
vincial governments, national government authori-
ties, national and international companies, academic
institutions, among others. Due to this exposure, we
doubled the number of our members in a short peri-
od of time, making our voice stronger to the author-
ities. We do this because we know that the success
behind renewable energies relies on the actions of
those who are part of the industry.

We definitely have to wait and see how things turn

out in order to carry out a deeper evaluation. How-
ever, we can say that the bottlenecks in the system
of electric transport cause a great concern due to
the lack of related effective policies. If we don’t do
anything about it, our sector will stop growing, re-
sulting in the closing of companies and the loss of
job positions.
The condition of the infrastructure reflects the ex-
tent to which we need regulations that allow the
construction of medium or low-power wind, solar,
biomass and small-hydro power plants, in particular,
and medium or low-power power plants based on
renewable energy sources, in general. We have made
suggestions on this matter and we appreciate that
authorities have listened and paid attention to them.
This is another step towards the transformation that
will bring many benefits and help with the develop-
ment of the value chain throughout the country.
What was exposed before is complementary with
the power distributed to houses, businesses and
industries. This brings opportunities to develop
the national industry of the sector in a sustainable
way, especially small and medium-size companies
in the provinces that invest in creating job positions
and gaining knowledge. We need to help them by
developing a clear industrial policy, giving them an
appropriate incentive to avoid unsustainable situ-
ations and by improving the financing provided by
local banks to all the value chain.
What is our contribution? Our role is to diversify
the matrix through the use of renewable energies,
working to ensure it’s done in a fast, efficient and
economical way, trying to avoid mistakes already
made by other markets and adopting models which
proved to be successful in other countries.
Since we are a diverse group of companies, we en-
courage the different internal commissions to de-
bate. This gives us a comprehensive perspective at
the time of making proposals, regulations and proj-
ects. We consider it is very important to think and
plan long term and, at the same time, to take into
consideration the daily process experienced by the
market and our partners.
When we hold meetings with government authori-
ties we always express our concerns so that the proj-
ects awarded by the RenovAr and MATER programs
can be successfully built in due time and proper form.
Today we can learn from our own experiences and
not just from our neighboring countries or countries
which are more advanced in this matter.
It is time to take pride in the steps we are taking, to
study the way and take successful ideas from other
economies, as stated by the technology roadmaps,
and to get ready to what’s to come. After all, renew-
able energy is the present and future of the energy
matrix.

10 Cámara Argentina de Energías Renovables Annual Report 2018 11

The RenovAr Program,
a turning point
It’s been almost three years since the Act No. 27191 was passed, which
involves adding 10,000 MW, generated by renewable energy sources to
the electrical grids towards the year 2025. This calls for a review of all the
projects that have been launched so far.

I
n 2018, the use of renewable energies has ad-
vanced at a good pace in Argentina, after the
momentum that made 2017 the “year of renew-
able energies”. This slogan was adopted by the
Argentine government to promote the use of re-
newable energy sources, until the goal of repre-
senting the 20% in the energy matrix in Argentina
is achieved. In order to accomplish this objective,
10,000 MW generated by renewable energy sourc-
es must be added to the electrical power system of
the country.
The Act. No. 27191, passed in September of 2015
by common consent, set the goals for the country
to develop renewable energies and created a legal
framework which allows to plan the market long
term and provides predictability of investment be-
havior. Regulations establish two contracting mech-
anisms: joint purchase through public bidding or free

RENEWABLE ENERGY GOALS (ACT NO. 27191/2015)

12/31/2017-2018 12/31/2019 12/31/2021 12/31/2023 12/31/2025

8% 12 % 16 % 18 % 20 %

Annual Report 2018 13

 RENEWABLE ENERGIES
PROGRAM 2016-2025
Regulation Framework
and direct contracting between producers and Great bidding winners through the FODER (Fund for the The strong appetite evidenced in Round 1 and the
Authorized Users (GAU), defined as those whose an- Development of Renewable Energies) and by having competitive prices encouraged the Government to
Act 27191 nual average power demand is 300 kW or above. the World Bank guarantees at the disposal of poten- immediately call for a second tender for those projects
Senate 2014 Chamber of tial bidders. The aim of this guarantee scheme was to that had not been awarded (Round 1.5). At first, the
(94% of Deputies provide transparency and to promote financing for installed capacity was set at 600 MW, so that small
positive 2015 (93% projects. The scheme had a double objective: to pro- projects could be distributed among the provinces.
votes) of positive
votes) The RenovAr Program tect the buyer’s (CAMMESA) payments and to miti-
This call also had a successful response from the
gate any systemic risk that might arise during the 20
In May 2016, the former Energy and Mining Ministry market.
years of duration of the contract, including termina-
Decrees 531 and 882 held the first round of the RenovAr Program, with
tion guarantees. Before the two tenders were held, 47 offers were presented, comprising a total in-
2016 the aim of attracting investments to develop renew- stalled capacity of 2,486 MW (1,561 MW from wind
the bidders had the chance to request for a risk mit-
able energy projects and achieve the set goals. projects and 925 MW from solar projects) and 30
igation. Furthermore, the required installed capacity
RenovAr is a plan designed to add renewable energy appeared in the tender Appendix No. 3.1 and 3.2, in projects were awarded, with an installed capacity of
RenovAr Legal
sources to the energy matrix. In this process, there order to reduce future restrictions on transmission, 1,281 MW, which doubles the required amount. The
Program Framework
Renewable is an open call for obtaining electrical energy in the capacity and availability of connection nodes.
Energy Term  MEM (Wholesale Electricity Market), produced by
Market
(MATER) renewable sources, using the sun, the wind, water
In the first three rounds
and the biomass. So far there has been three calls:
Round 1, Round 1.5 and Round 2, in which a total of Round Results of the RenovAr Program,
Round 1 Res. 281/2017
Resolution (Res.)
71 and 136/2016
Provision
1E/2018
147 projects were awarded.
Round 1 of the RenovAr Program was a huge suc-
147 projects were
Round 1.5
Res. 252/2016
The RenovAr mechanism has tried to address and cess. There were 123 offers with five different types awarded to 21 provinces
Round 2
Res. 275/2017
solve problems that arose in the GENREN (Renew- of technologies (mainly wind and solar photovoltaic with the aim of adding
able Energy Generation Program) Program in 2009, energy). The installed capacity offered was six times
Round 3
End of 2018 in which a high percentage of awarded projects was higher than the one requested in the tender (10,000
4,466.5 MW produced
carried out. The main change we wanted to intro- MW) and prices were highly competitive, about 40% from renewable sources
duce was to ensure better financial conditions for the lower than the maximum set price. to the energy matrix.

2018-2025 NATIONAL GOALS TO ADD RENEWABLE ENERGIES

Ex-ante RenovAr + actions until 2018

~15%

3 GW 10 GW Ex-ante RenovAr RenovAr actions to date

25% 0.8 GW RenovAr Round 1 1.1 GW 2.7%
1.8%
% of the total electric demand

20% RenovAr Round 1.5 1.3 GW 3.0%

20% 18% Legacy Contracts (Res. 202) 0.5 GW 1.5%
16%
15% RenovAr Round 2 2.0 GW 4.9%
12%
TOTAL 4.9 GW 12.1%
10% 8%
5% MATER actions until 2018 0.8 GW

0% Note: Percentage of renewable energy out of the total demand, calculated with the
2018 2019 2020 2021 2022 2023 2024 2025 P75 of the estimated generation and the demand projected for 2018.

Source: Secretary of Energy

14 Cámara Argentina de Energías Renovables Annual Report 2018 15

 TOTAL AWARDED PROJECTS, ROUND 1
Job creation Argentina
Renewable Energies RenovAr Rondas 1, 1.5 & 2 y Res. 202
August 2018

Technology Type Projects MW GWh/year USD/MWh ESTIMATED TOTAL: 17,446 JOB POSITIONS
157 44
projects projects
awarded through through
Wind 12 707.5 3, 002 59 RenovAr MaTer

PERCENTAGE
PROJECTION OF RENOVAR
Solar 4 400.0 959 60 Construction Operation and Maintenance (O&M)

15,391 2,055
BASED ON THE
AND MATER PROJECTS PROJECTION OF

Total 6,047 MW job positions job positions

THE TOTAL JOB 6%
Biogas 6 8.6 58 154
POSITIONS
25%
Construction O&M

Biomass 2 14.5 121 110 3,738 MW 7,086 745 3%

job positions job positions
WIND

Small-hydro 5 11.4 65 105 Construction O&M 17% 8%

1,996 MW 5,556 431
Total/Average 29 1,142.0 4,205 61.33 SOLAR
job positions job positions

19%
Source: former Energy and Mining Ministry Construction O&M
281 MW 2,316
job positions
798
job positions
BIOENERGIES 5% JOB POSITIONS
ACCORDING TO THE
MAIN TECHNOLOGY
Construction O&M TYPE IN EACH REGION

32 MW 433 81
TOTAL AWARDED PROJECTS, ROUND 1.5 P.A.H
job positions job positions
100% 90% 86%
BIOENERGIES: Biomass, biogas and landfill biogas. P.A.H: (Pequeños Aprovechamientos Hidroeléctricos) Small-hydro Power Plant.

59 RenovAr projects (50 projects under construction and 9 in operation)

17% 100% 100%
Technology Type Projects MW USD/MWh GWh/year
Construction Operation and Maintenance
Wind 10 765.4 53.00 3,037 PROJECTS IN OPERATION AUGUST, 2018
120
4,974
83% 69% 43%
Total 2,373 MW job positions job positions

Solar 20 516.2 54.00 1,274

Total/Average 30 1,281.5 54.98 4,311 CURRENT JOB POSITIONS: 5,094 52% 36% 11% 1%

Source: MEyM
UNDERSECRETARIAT OF RENEWABLE ENERGY. ENERGY MINISTRY. View the entire report on www.argentina.gob.ar/estudios-y-publicaciones

average price was about 54 USD/MWh, so prices
were even better than the ones offered in the pre-
vious round.
The National Agency of Investments estimates that
the private investment required for the develop-
ment of the projects will be of 4,000 million dollars
and that 20,000 job positions will be created.
In both rounds held in 2016, a total of 59 projects
were awarded, which will add 2,500 MW to the sys-
tem, completely generated from renewable sources.
This represents an 8% increase of the installed ca-
pacity of the country.
As can be seen, wind energy had a stronger participa-
tion: in both rounds, 22 wind projects were awarded
with an installed capacity of 1,473 MW and an expect-
ed electricity generation of 2,233 GWh. Solar photo-
voltaic energy comes in second place: 24 projects
were awarded with an installed capacity of 916 MW
and an expected electricity generation of 244 GWh.
Even though foreign and national investors attend-
ed these calls, the local ones made a greater num-
ber of offers. Although the weighted price was lower
than the one expected by the Government, it was
even higher than the numbers from the region.
Since 2016 evidenced really good results, the fol-
lowing year another call for tenders of renewable
energies was held in the country, known as Round
2. The required installed capacity for these projects
was 1,200 MW. In this tender, the participation of
the regions was even higher and each one got as-
signed an amount of installed capacity and a type of
technology. As regards wind energy, Buenos Aires,
Comahue and Patagonia were appointed 200 MW,
with a limit of 450 MW in total, and the rest of the
country received 100 MW. As regards solar energy,
the Northwestern and Cuyo Regions were assigned
200 MW each, and 100 MW were given to the rest
of the country.
This time, the offers had an installed capacity of comprising a total installed capacity of 4,666.5
9,321 MW. In the first phase, 66 projects were MW with an average price of 54.2 USD/MWh.
awarded with a total of 1,400 MW. The prices of-
fered were surprisingly low: the lowest price in
wind energy projects was 37 USD/MWh and 40
USD/MWh in solar projects. In the second phase, Price Development
22 projects were awarded, which added 634 MW Even when the required price for Round 1 was 90
to the system: 4 wind projects with a price of USD/MWh, the prices offered by wind and solar
about 40 USD/MWh, 5 solar projects with an av- projects were of about 55 and 57 USD/MWh, re-
erage price of 41.6 USD/MWh and 13 biomass and spectively. A year later, in Round 2, the set price
biogas projects with an approximate price of 137 was 57 USD/MWh, while the prices offered were of
USD/MWh. about 40 and 42 USD/MWh.
In total, 88 projects were awarded in Round 2, with This comparison shows that the system saved
an installed capacity of 2.043 MW and an average approximately a 25% in solar photovoltaic ener-
price of 51.48 USD/MWh. In this case, Argentina gy and a 27% in wind energy. The reasons: even if
was closer to compete with the highly competitive financing rates might have remained unchanged,
prices of other tenders of the region. If we ana- companies gained more knowledge on the market
lyze it as a whole, the RenovAr Program awarded conditions and took risks using a price that was
147 projects of renewable energy, to 21 provinces, lower than the reference price. In terms of tech-

16 Cámara Argentina de Energías Renovables Annual Report 2018 17

 RESOLUTION 202 AND ROUNDS 1, 1.5 AND 2 OF THE RENOVAR PROGRAM RENOVAR PROGRAM. Installed capacity set according to the region and technology type.

Estimated commercial operation date (cumulative) 2018 2019 2020 2021

660 MW 3,625 MW 4,890 MW 4,966 MW Capacity based on technology type (MW)
Total
RenovAr
Region Landfill Capacity
Proyects Biogas Biomass Wind Solar
RenovAr Rounds 1 and 1.5 and Resolution 202 Biogas PAH (MW)
Proyects Energy Energy Energy
Energy

2.92 GW 2018 state of awarded projects Buenos Aires 24 10 10 14 1.011 – – 1045

9.6 TWh/year PROJECTION Central 32 24 – 13 48 2 161 248
69 awarded projects 2016 2018
of PPAs (Power Purchase Comahue 7 2 – – 322 7 – 331
Agreements) were signed Cuyo 29 – – – 50 24 715 788
100% OF GUARANTEES WERE PROVIDED 1.66 GW
Litoral 12 20 4 7 – – – 31
LEVELS

1 - FODER 576 Thousand USD (41 proyects) 7% in operation 17% in operation

2 - Soberana 4,500 Thousand USD Northeastern 10 – – 103 – – – 103
2,545 Thousand USD 52% under construction 68% under construction
3 - World Bank 480 Thousand USD investments in progress Northwestern 25 6 – 66 295 – 8 375
41% financial close 15% financial close
Patagonia 18 – – – 1.186 – – 1186
RenovAr Round 2 Total 157 62 14 203 2.912 33 884 4108

PRICE DROP IN ROUND 2 Source: self-made table based on the information obtained from the RenovAr Program and the Resolution No. 202/16.
2.04 GW 7.3 TWh/year -22% lower than the average price in Rounds 1 and 1.5
40.4 USD (Minimum price)
88 awarded projects
11 PPAs signed - 29% lower than the average price in Rounds 1 and 1.5 nology, costs of the main components were re-
37.3 USD (Minimum price)
duced, especially in the wind industry. There was
also more pressure at the time of contracting ser-
vices. Furthermore, companies which were award-
ed projects in rounds 1 and 1.5 knew how to take
advantage of their profits, in terms of the econo-
ROUNDS 1, 1.5 AND 2
mies of scale, at the moment of giving their quo-
147 Awarded Projects: 4.466 MW and 15.836 GWh/year
tation in Round 2.

The Status of Renewable

Projects in 2018
After 2016, 157 projects were awarded through the
RenovAr Program and the Resolution 202. How-
WIND ENERGY SOLAR ENERGY BIOGAS, SMALL-HYDRO ever, an agreement from Round 1.5 was terminat-
Proyects: 34 Proyects: 41 LANDFILL BIOGAS POWER PLANTS
MW: 2,466 MW: 1,732 AND BIOMASS Proyects: 14 ed because a company didn’t fulfill the contract
GWh/year: 9,778 GWh/year: 4,290 ENERGY MW: 32
Proyects: 58 GWh/year: 103 obligations. The projects represent a total capac-
MW: 236
GWh/year: 1,665 ity of 4,931.488 MW to be installed: 41 photovol-
taic solar projects, 41 wind projects, 14 small-hy-
dro projects, 3 landfill biogas projects, 19 biomass
projects and 37 biogas projects.

18 Cámara Argentina de Energías Renovables Annual Report 2018 19

 RENOVAR PROGRAM
Projects in operation
until July, 2018
Other 41 projects must be added to the ones already
mentioned, which were given priority by the MATER
BIOGAS PROJECT 2.00 MW C.T. (Thermal
(Renewable Energy Term Market) Program. This re-
RenovAr Program sults in 197 investment proposals and an installed
Power Station) Río Cuarto, Córdoba

BIOGAS PROJECT 9.00 MW C.T. Prodeman, Córdoba

capacity of 5,941.068 MW.
7,000 4.5 millon BIOGAS PROJECT 2.00 MW C.T.
Today, 81 plants are either in operation or under
millon USD households reached Pindó Eco-Energía, Misiones
construction. 62 were awarded through the Reno-
Direct Investment BIOGAS PROJECT 1.42 MW C.T.
vAr Program and the Resolution 202. Together, they San Pedro Verde, Santa Fe
reach an installed capacity of 2,393.995 MW and
BIOGAS PROJECT 1.20 MW C.T. Yanquetruz, San Luis

147 12 to 30 4,466 MW 15 TWh/year they represent an investment of over 3,600 million

dollars.
BIOGAS PROJECT 7.00 MW P.A.H. (Thermal
awarded Months until New capacity Renewable Power Station) Río Escondido, Río Negro
projects the COD generation Out of the remaining 19, 17 correspond to the MA- WIND PROJECT 100.00 MW P.E.
(commercial TER Program and the other 2 are not related to any (Wind Park) Corti, Buenos Aires
operation date)
of these programs. Source: Energy and Mining Ministry

95% 8.4 millon The National Secretary of Energy, in charge of Javi-

t of CO2 avoided. er Iguacel, considers that fifteen clean energy plants
of the Argentine
The equivalent of 1.5 will come into operation by the end of the year 2018:
territory
million of cars 11 solar parks, 2 wind parks and 2 bioenergy plants.
34 Wind projects They are expecting to start the year 2019 having at
least 22 renewable energy power plants in operation.
41 Solar projects
18 Biomass
projects

36 Biogas
projects

4 Landfill Biogas
projects

14 PAH projects

20 Cámara Argentina de Energías Renovables Annual Report 2018 21

 Expectations on
the advances of the
MiniRen Round
At the end of this text, the bid documents will remain unknown. However,
even though the Round 3 of the RenovAr Program surpasses the previous
ones in terms of requirements, it presents some weaknesses.

I n the conference Argentina Wind Power 2018, or-

ganized by the GWEC (Global Wind Energy Coun-
cil), held in the City of Buenos Aires on September
6 and 7 of 2018, the Undersecretary of Renewable
Energy, Sebastián Kind, presented the main outlines
of the new call for tender named MiniRen Round 3.
According to him, the tender will be for 400 MW di-
vided in the following way: 350 MW will be destined
for photovoltaic solar and wind energy, 10 MW for
small-hydro energy, 25 MW for biomass energy, 10
MW and 5 MW for biogas and landfill biogas energy,
respectively. Apart from the last technology type,
the rest will be divided among the regions.
It will be connected to 13.2 kV, 33 kV or 66 kV electri-
cal grids. The capacity limits will range from 500 kW
to 10 MW.
Another characteristic of this RenovAr round is
that there will be less requirements than in the
previous ones. Neither of the following will be re-
quired: to have a strategic partner, to present a
statement of electricity to be generated, to pres-
ent a measurement report, to have lands free from
encumbrances, or to have an environmental ap-
proval by the date of the offer. Furthermore, since
this scheme is more flexible, it will be allowed to
form temporary consortiums (UTEs) and create
trust funds.
Since the voltage to be connected belongs to the
distributors’ jurisdiction, an agreement has to be
reached with them in terms of connection, capac-
ity and payments to CAMMESA (Wholesale Elec-
tricity Market Management Company).

22 Cámara Argentina de Energías Renovables Annual Report 2018 23

 The project will be awarded based on the price, not
the COD. The chosen price will not have inflationary
adjustments or incentives. It will not receive dispatch
priority or guarantees from the World Bank.
According to the published timeline, offers will be
presented in March, projects will be awarded in May
and contracts will be signed in July, 2019.
CADER considers (before knowing the end of the bid
documents) that the tender scopes have advantag-
es and some weaknesses. In terms of advantages,
24 Cámara Argentina de Energías Renovables
renewable energies are still being added, diversified
and regionalized. We are still promoting the devel-
opment of companies and SMEs, which provide
goods and services to smaller projects. As regards
weaknesses, benefits such as inflationary adjust-
ments or incentives have been eliminated, which
might lead to higher prices. Since measurements are
not required and there is no dispatch priority, proj-
ects might lose quality and soundness. This makes
results to be uncertain.
Annual Report 2018 25
 Term Market:
the details of a
growing business
MATER is the alternative for large users who want to purchase their quota
of renewable energy through private contracts. Here you can find detailed
information on this situation.

A
s it’s been said before, Act 27191, a regime to
promote the national use of renewable energy
sources to generate electrical energy, (which modi-
fied Act 26190/2006) states that all the users must
contribute to the goals and use more renewable
sources when consuming electrical energy until the
following objectives are achieved: 8% by the end of
2017, 12% by the end of 2019, 16% by the end of 2021,
18% by the end of 2023 and 20% by the end of 2025.
Furthermore, section 9 of the act states that
self-generators, the Large Users of the Wholesale
Electricity Market (GUMA- Major Large Users-
and GUME- Minor Large Users), Large Distribu-
tion  Company  Users (GUDI), with demands of 300
kW or more, should achieve those goals individually.
These are called Large Authorized Users (GUH) and
they have an average annual demand of 31.4 TWh
(Table 1). Therefore, by 2025, they must consume
a minimum of 6.3 TWh of renewable energies to
achieve the goal of Act 27191.
Three Options to Obtain Energy
The Large Users (GU) have three different ways to
comply with this obligation:
1. Generation, self-generation or cogeneration
(having their own project that allows them to
meet the requirements)
2. Entering into a contract with the owner of
a renewable energy power plant (commonly
referred to as a private PPA)

26 Cámara Argentina de Energías Renovables Annual Report 2018 27

 TABLE 1. DEMAND, INSTALLED CAPACITY AND NUMBER OF LARGE RENEWABLE ENERGY MARKETS: Three Ways of Contracting
AUTHORIZED USERS (GUH) OF THE WHOLESALE ELECTRICITY MARKET (MEM)

Type of user Total Demand Average Installed Number JOINT PURCHASE It meets the demand of <300 kW
2017 (MWh) Capacity 2017 (MW) of Users (RenovAr Program and other initiatives and of large users who don’t exercise
from the Energy and Mining Ministry their opt-out right.
Major Large Users (GUMA) 19,347,444.6 5.7 390 All users (MINEM)) The price is fixed in the tender.
Self-generator 632,017.7 4.8 15 are bound
Large users >300 kW who exercise

RENEWABLE
Minor Large Users (GUME) 3,409,858.9 0.7 586
by law AGREEMENTS*

MARKET
(MATER)
ENERGY
their opt-out right can negotiate freely.

TERM
Large Distribution Company Users (GUDI) 8,021,051.7 0.8 1,098 Annual goals subjected to penalty.
Total 31,410,372.8 1.7 2,089 SELF-GENERATION Price, terms and conditions agreed
between private participants.
Source: Self-made table based on information provided by CAMMESA. * With private generators, suppliers and/or distributors.

The average annual 3. A joint purchase through the RenovAr Rounds, able Energy Term Market (MATER, MEyM Resolu-
for those GU who like this option or the ones who tion 281-E/2017) became known, stating the condi-
demand of Authorized refrain from choosing one (a default solution). tions to regulate contracts between the renewable
Large Users is 31,4 self-generation and the large users of the MEM.
TWh. In 2025, they According to CAMMESA, this regime covers about
must consume 6,3 2,000 GUH (19 with an installed capacity higher than
PPAs in the MATER Program 20 MW; 92 with an installed capacity that range be-
TWh of renewable
Some important aspects came up after the negoti- tween 5 and 20 MW and 1,959 ranging between 0.3
energy to comply ations between the private participants. In fact, in and 5 MW). The list of GUH will be updated every
with Act 27191. the third quarter of 2017, the Regime of the Renew- year in February.
Exclusion from joint purchases
Every year in February, CAMMESA publishes the list
of those GU who meet the requirements to become
excluded from the joint purchases: the GUHs. The
option of being excluded from this mechanism is
given twice a year, in May and November. When the
GUHs inform that they want to choose this option,
they must state the estimate percentage of de-
mand that they will self-generate or obtain through
the MATTER Program, which must be higher than
the one set by the goals of the Act 27191.
Once this new mechanism has been adopted, the
GUHs will have 6 months to go back to the joint pur-
chase mechanism. If the new option has been con-
firmed, they will have the chance to go back to the
joint purchase mechanism after a period of 5 years.
In order to make sure the goals of the Act are being
complied with, once a year CAMMESA will fiscalize
the cumulative results of monthly operations of
those GUHs who were excluded from the joint pur-
chase mechanism.
As a benefit, those GUHs who decide to no longer
use the joint purchase mechanism won’t have to pay
for the administration and commercialization fees,
which will become applicable as of January, 2019.
These fees apply to the monthly energy provided by
the joint purchase agreements, until the percentage
set by the goal of the Act 27191 (Table 2) is reached.
TABLE 2. AMINISTRATION FEE
OF JOINT PURCHASES
Administration Fee (USD/MWh)
2017-18 2019-20 2021-22 2023-24 2025-30
0 0.05 0.05 0.05 0
Source: Resolution 281-E/2017

28 Cámara Argentina de Energías Renovables

 GOALS OF THE MATER MW. (Table 3) TABLE 5. LIST OF GUHS WHO DECIDED TO EXIT THE JOINT PURCHASES MECHANISM
PROGRAM
Furthermore, those GUHs who decide to stay out of
User Total Demand 2017 (MWh) Average capacity 2017
1. To promote investments for the the joint purchase mechanism will get a discount on
generation of electrical energy Aluar SA 2,521,557.4 287.8
the reserve capacity fee, related to the firm capacity: Banco Macro – Centro Tec. Macro 3,607.7 0.4
from renewable sources.
the average monthly capacity obtained through the Capea Bueras SAIYF 7,572.6 0.9
2. To regulate MEM’s contracts and
MATER Program will be multiplied by the inflation- Capea Lanús SAIYF 9,067.9 1.0
the self-generation of electrical
energy from renewable sources. ary adjustment of the corresponding biannual peri- Cican - Saavedra – Monte Grande 16,901.3 1.9
od (Table 4) and the resulting number will be sub- Coca Cola FEMSA – Pompeya 43,767.0 5.0
3. To establish the dispatch priorities
according to the capacity of the tracted from the total amount of the required firm FATE SA – San Fernando 91,838.2 10.5
electrical grid in order to avoid the capacity. In May 2018, the value of this fee without Loma Negra – Catamarca 137,841.8 15.7
congestion of renewable projects. reductions is about 7 USD/MWh. Loma Negra – Olavarría 162,758.7 18.6
Meranol 12,014.9 1.4
In June, 2018, it’s been a total of 42 GUHs who have
Minera Aguilar SA 3,243.5 0.4
decided to stay out from the joint purchase mecha- OroPlata SA 103,295.1 11.8
nism (Table 5). In terms of demand and average in- Profertil SA – Bahía Blanca 259,516.8 29.6
stalled capacity, these GUHs account for 18% of the Toyota – Zárate 74,499.8 8.5
TABLE 3. MAXIMUM COMMERCIALIZATION
total of GUHs of the MEM. YPF – Morse Avellaneda 6,866.6 0.8
FEE OF JOINT PURCHASES
YPF – Term. La Matanza 3,270.3 0.4
YPF – Yacimiento El Portón 2 4,376.5 0.7
Maximum Commercialization Fee (USD/MWh)
Dispatch Priorities YPF – El Tordillo 37,821.9 4.3
2017-18 2019-20 2021-22 2023-24 2025-30 YPF – Km 5 40,097.2 4.6
Those power plants which want to sell energy under YPF – Las Heras 280,401.6 32.0
0 6 10 14 18
the regime of the MATER Program can ask for a pri- YPF – Petroquímica La Plata SA 161,138.1 18.4
Source: Resolution 281-E/2017
ority of dispatch due to the restrictions on the trans- YPF – Refinería Luján de Cuyo 241,311.6 27.5
mission capacity. This is assigned every three months. YPF – Refinería La Plata 482,656.2 55.1
TABLE 4. INFLATIONARY ADJUSTMENT APPLIED In order to obtain this priority, the interested genera- YPF – Río Tunuyán 3,411.9 0.4
TO THE SUBTRACTION OF THE FIRM CAPACITY tor has to make a request to CAMMESA and submit a YPF SA 15,737.6 2.4
FEE, BASED ON THE ENERGYOBTAINED document certifying the start of the registration pro- YPF SA 155,943.5 17.8
THROUGH THE MATER PROGRAM cess in the RENPER (National Registry of Renewable YPF SA 4,637.2 0.5
Energy Projects), among other documents. CAMME- YPF SA – EB Cacharí – Azul 8,554.8 1,0
Inflationary Adjustment Applied to the SA will keep an updated list with the available capac- YPF SA – EB Chillar – Azul 10,989.2 1.3
Subtraction of the Firm Capacity Fee ity that can be dispatched to assign priorities in the YPF SA – EB Las Flores 12,148.8 1.4

2017-18 2019-20 2021-22 2023-24 2025-30 different interconnection points (PDI). YPF SA – Edif. Sede Central 8,351.3 1.0
YPF SA – Edif. Torre Blanca 7,388.2 0.8
100% 100% 75% 50% 25%
YPF SA – EB Espinillo 4,172.4 0.5
Source: Resolution 281-E/2017 YPF SA – EB I. Rico – Pringles 18,267.1 2.1
YPF SA – EB El Sosneado 12,322.5 1.4
Project Selection YPF SA – Yac. Vizcachera ex Astra 289,787.4 33.1
The commercialization fee will apply according to the If the number of requests exceeds the transmission YPF SA – Sede Puerto Madero 13,076.5 1.5
GUHs average monthly capacity and to the maxi- capacity of a determined PDI, CAMMESA will deter- YPF SA – Yac. Puesto Hernández 274,017.4 31.3
mum fee established by each biannual period. Those mine the priority of each project. The first aspect to YPF SA – Yac. Medanito 39,741.7 4.5
GUHs whose average monthly installed capacity is determine the level of priority will be the best COD, YPF SA – Yac. Mendoza 33 kV 74,892.5 8.5
YPF SA – Yac. Mendoza 66 kV 117,477.2 13.4
higher than 20 MW will have to pay the entire max- if the difference between projects is bigger than 60
YPF SA – Yac. Río Neuquén 10,236.3 1.2
imum fee, while those GUHs with a lower installed days. If the difference is smaller, the capacity factor
Total 5,786,576.0 661.3
capacity will have a fee reduction, linearly propor- (FC) will determine the result, as long as the differ-
% over the total of GUHs 18% 18%
tional to its monthly capacity, reaching a 20% for 0 ence is bigger than 10%. Otherwise the defining vari-
Source: CAMMESA

30 Cámara Argentina de Energías Renovables Annual Report 2018 31

 PE Energética I - Energética Línea 132 kV Bahía Blanca
19.15 2/10/2019
Fase II Argentina – TORNQUIST
Línea 132 kV Bahía Blanca
able will be the amount of fiscal benefits requested, Parques Eólicos del
Agreements signed in PE. De la Bahía 20.51 - Monte Hermoso 6/7/2019
Fin del Mundo SA
if the difference is higher than 30,000 USD/MW. Fi- the MATER Program - Cnel. Dorrego
nally, if there’s still a tie, the dispatch priority will be Línea 132 kV Carmen de
Up to July, 2018, 108 contracts were entered into PE Villalonga II Genneia SA 3.45 1/31/2019
determined by draw. Patagones - Luro
in the sphere of the MEyM Resolution 281-E/2017.
Table 6 shows in detail the projects which were as- Línea 132 kV Bahía Blanca
96 contracts were related to the Wind Park PE La Genoveva II CP Renovables SA 41.8 2/5/2019
– Cnel. Pringles
signed dispatch priority at the end of August. Parque Eólico Manantiales Behr, belonging to YPF
Parques Eólicos Línea 132 kV Las Armas -
Out of the 44 projects selected, wind and solar Energía Electrica SA, which will supply energy to PE Las Armas 50 6/10/2019
Argentinos SA Madariaga
energy received the same proportion of projects. different points of consumption in YPF itself. The
Línea 132 kV
However, the assigned wind capacity rises to 827 other 12 corresponded to the Wind Park Parque Parque Eólico del
PE Del Bicentenario II 21.6 Petroquímica - Puerto 3/30/2019
Eólico Rawson III, owned by Genneia, which will Bicentenario SA
MW (77% out of the total). As regards the amount Deseado
of energy, considering that the net FC for wind en- supply energy to different points of consumption
Arribo 3 - T3 132 kV
in Loma Negra and the OroPlata SA mining com- PE Aluar I Aluar Aluminio SAIC 50.4 2/1/12018
ergy is 45% and for solar energy is 25%, the as- Planta Aluar
signed capacity will allow an annual generation of pany (Table 7).
Energías
Línea 132 kV Nonogasta -
3.8 TWh. PSFV Nonogasta VI Sustentables SA – 13 12/9/2019
Malligasta
360 Energy
TABLE 6. LIST OF POWER PLANTS WHO RECEIVED DISPATCH PRIORITY
PSFV Parque Empresa Federal de
12 Chamical 2/23/2019
de los Llanos Energía SA (EFESA)
Installed Línea 33 kV Cafayate -
Business Name PSFV San Carlos Sybac Solar IV SA 7 20/2/2019
Capacity Cachi
Project Provided in the PDI Description Estimated COD
Assigned
Request Línea 132 kV Villa
(MW) PE Achiras II CP Achiras II 49.4 9/15/2019
Mercedes - Maranzana II
Línea 132 kV Bahía Blanca
Parques Eólicos del PSFV Solar de Generadora Solar
PE De la Bahía 28 - Monte Hermoso - 05/10/2019 5 El Marcado 12/3/2018
Fin del Mundo SA los Andes Santa Rosa SA
Cnel. Dorrego
Latinoamericana Línea 33 kV Calingasta
PE La Castellana II Central Puerto SA 15.75 Chañares 1/4/2019 PSFV Tamberías 3 4/27/2020
de Energía SA Vieja - Tamberías
PE Pampa Energía Greenwind SA 50.4 Bahía Blanca 132 kV 105/0/2019
PSFV Tocota Solar I Isla Power SA 50 Bauchazeta 3/3/2019
YPF Energía Línea 132 kV Diadema -
PE Manantiales Behr 99 1/22/2020 Latinoamericana
Eléctrica SA Pampa de Castillo PSFV Los Diaguitas 2 Albardón 3/3/2019
de Energía SA
PE Rawson III Genneia SA 24 Rawson 1/22/2020
PS Parque de Empresa Federal de
8 Chamical 8/13/2020
Energías Línea 132 kV Nonogasta - los Llanos Energía SA (EFESA)
PSFV Nonogasta V 14.97 1/22/2020
Sustentables SA Malligasta
Green Valley Línea 132 kV Belén -
PS Green Valley Solar 34.38 8/13/2020
Energías Solar SA Andalgalá
PSFV Saujil III 8 Saujil 1/22/2020
Sustentables SA Ledesma Línea 33 kV Ampajango -
PS El Puesto 12 8/13/2020
PSFV Cafayate Solar Cafayate Solar SA 3 Cafayate 1/22/2020 Renovables Santa María
Línea 132 kV Villa Solares de San
PE Achiras II CP Achiras II SAU 30 1/22/2020 PS San Miguel 35 La Candelaria 8/13/2020
Mercedes - Maranzana II Miguel SA
Parques Eólicos Línea 132 kV Gral. Acha - PS Cura Brochero Línea 66 kV La Viña -
PE La Banderita II 10.8 7/22/2019 PS Cura Brochero 8 8/13/2020
Vientos del Sur SA Puelches SAU Cura Brochero
Línea 132 kV Choele Choel PS Villa de María PS Villa María Villa de María
PE Pomona II Genneia SA 11.7 3/27/2019 10 8/13/2020
- Beltrán de Río Seco del Río Seco SA del Río Seco
Luz del Cerro SA- Línea 132 kV Olavarría - PS Helios Río Helios Río
PE Los Teros - ALT 72.2 5/16/2019 1.5 CH 25 de Mayo 132 kV 8/13/2020
YPF Tandil Diamante PV VI Diamante PV VI SA

32 Cámara Argentina de Energías Renovables Annual Report 2018 33

 Austral Gold
PS Casposo 7 Calingasta Nueva 8/4/2019
Argentina SA
PS Tocota Solar I - A Isla Power 6 Bauchazeta 1/6/2020
1. on the past year; benefits requested, even if the term set to construct
PS Tocota Solar I - B Isla Power 4 Bauchazeta 8/30/2019
and start commercial operations has not expired yet.
Energía
2. 10% tolerance which can be compensated
PS Anchipurac 3 La Bebida 8/13/2020 Big projects might be able to overcome this situation
Provincial SE on the following year;
and eventually make progress on account of fiscal
PS Ullum Solargen II Solargen Ullum SA 6.5 Solar Ullum 8/13/2020 3. subjected to penalty, based on the benefits. However, smaller projects whose financing
PE Vientos Vientos Línea 132 kV Chocón - percentage of renewable energy that was not certain at the time of requesting priority and
79.2 8/18/2019
Neuquinos I Neuquinos SA Piedra del Águila should have been used, charged as if they that will probably face delays in their financial close
Luz del Cerro SA - Línea 132 kV Olavarría - were generating electricity with diesel fuel stage and the beginning of the construction state
PE Los Teros 50.35 7/30/2019
YPF Luz Tandil (that is to say, the most expensive form of
Autotrol generation; equivalent cost of diesel fuel –
PE Wayra I 49.4 Bahía Blanca 132 kV 9/12/2019
Renovables SA CGOEQ- 2017: about 100 USD/Mwh);
Vientos Punta Línea 132 kV Vivoratá 4. before the fee is imposed, the GUs shall
PE Santa Teresita 12.6 12/5/2019
Alta SA (Mar del Plata) - Quequén
present their complaint.
Vientos Punta Línea 132 kV Vivoratá
PE Santa Teresita - A 37.4 2/13/2020 With the aim of regulating the problems regarding
Alta SA (Mar del Plata) - Quequén
the availability to access the transmission system,
Total Assigned 1,080.5
a priority of access regime was created in case two
Source: CAMMESA
renewable energy projects are competing for the
only access point (otherwise, renewable energy
projects already have priority according to section
TABLE 7. AGREEMENTS ENTERED INTO THE MATER PROGRAM, REPORTED BY CAMMESA 18 of the Act 27191).

Apart from the GUHs, the GUs who are part of the
Power Plant Number of GUH MEM will be able to enter into private PPAs even
Agreements
if they didn’t choose to leave the joint purchase
PE Manantiales Behr 96 Different demands from YPF mechanism. The GUHs will only get the previously
PE Rawson III – Genneia 12 Different demands from Loma Negra and OroPlata SA detailed incentives if they decided to obtain ener-
Total 108 gy through the MATER Program, while staying out
of the joint purchase regime.
Source: CAMMESA

Benefits and incentives
This regime is an encouragement to stop using the
joint purchase mechanism so that, those who de-
cide to do so, develop a project of renewable en-
ergy (or to contract a renewable project through
the MATER Program) which will be exempted from
paying commercialization and administration fees.
This energy produced from renewable sources will
not have to pay for extra energy fees and will be
able to get a discount in the fees related to the
maximum requirement of capacity, based on the
capacity of the renewable energy and the time
when they made their choice (100% up to 2018,
25% in 2020; this discount will remain unchanged
based on to the time when they decided to leave
the joint purchase mechanism and as long as they
stay out of it).
Those GUs who decide to leave the joint purchase
mechanism will be fiscalized to verify if they are
complying with the minimum legal requirements:
Implementation and regulations,
aspects to examine
There are some situations related to the MATER
Program that create uncertainty and that should be
solved by the authorities as soon as possible. An ex-
ample is that PPAs entered into through the MATER
Program must deal with the variable transmission
costs and it is not clear how these costs are going
to change in the future. Furthermore, many of those
projects which obtained dispatch priority based on
the explained regime didn’t have access to the fiscal

34 Cámara Argentina de Energías Renovables Annual Report 2018 35

 order to do so, GUHs have to make the decision of

Up until July, 2018, exiting the joint purchase mechanism. This option
gives them benefits, like the exemption of admin-
44 wind and solar istration and commercialization fees charged by
parks had dispatch CAMMESA and a discount, that will decrease in time,

priority, but only two on the fee applied to the reserve of firm capacity.

of them had entered The GUHs allowed to use the MATER Program are
the ones who demanded an annual amount of 31.4
into contracts. TWh in 2017. Therefore, in order to achieve the goals
of the Act 27191, in 2025 they will need a minimum of
6.3 TWh coming from renewable sources.

The 42 GUHs which informed their exit from the joint

might not be able to overcome this. If we take it to
purchase mechanism up to July 2018 only account
the extreme, if this issue is not taken care of, some
for the 18% of the total demand of electrical energy
projects may not be carried out due to the lack of
of all the GUHs. 31 GUHs informed CAMMESA that
finance in Argentina.
they have entered into contracts with generators.

As regards projects that can offer their energy to

Conclusions
The MATER Program is the alternative for the GUHs
who want to enter into private contracts for the sup-
ply of energy generated from renewable sources. In
the MATER Program and that already have priority
of dispatch, 44 wind and solar parks will generate
about 3.8 TWh a year. However, up until now only
two projects reported CAMMESA to have signed the
contracts. Therefore, until July 2018, there were at
least 3.0 TWh who hadn´t signed yet.

Latinoamericana de Energía (LAE) specializes in EPC and O&M for Oil & Gas and Renewable Energies industries, to
whom also provides a broad range of complementary services.
Its long-standing history has enabled it to develop excellence in human and technical resources, which complements
a top quality network of suppliers.
Since 2003, the company has adopted an Integrated Multi-Site Management System, a requirement for ISO 9001,
OHSAS 18001 compliance. It drives the highest level of efficiency, ensuring an adequate operation planning and the
possibility to implement preventive measures intended to minimize environmental threats and impacts, identify
facility risks and protect our operators and workers.
These high standards have been a framework of excellence that lead LAE to an active presence in the Latin America´s
energy market and solid client portfolio, including some of the main companies in the industry.

GRUPO LATINOAMERICANA DE ENERGÍA

CENTRAL OFFICE LATINOAMERICA (ARGENTINA) CENTRAL OFFICE NORTH AMERICA
R. Panamericana (ramal Pilar) Km. 53.5, 700 Lavaca STE 1401
Ed. Polo 1 Of. 321/322 Pilar, Prov. De Buenos Aires Austin, TX 78701
Tel: +54 (2322) 37 4066/67 Tel: +1 (469) 844 3348
infolatam@grupolatinoamericana.net infousa@grupolatinoamericana.net
Annual Report 2018 37
www.grupolatinoamericana.net
 Wind Energy:
status and next
challenges
Out of all the technologies used to generate renewable energy, wind energy
is the one which has prevailed in the joint purchases and the MATER
Program. In order to keep growing and to provide investors with more
certainty, some adjustments must be made.

W
ind energy is the technology type which
showed more participation since the start of
the renewable energy market in Argentina. This can
be confirmed when we look at the projects award-
ed by CAMMESA through the joint purchase mech-
anism, the RenovAr Program and the Resolution
202/2016, as well as the dispatch priorities estab-
lished in the Renewable Energy Term Market (MA-
TER) as of February, 2018.
We are expecting this technology to be, at least in
the short and medium term, the largest supplier of
installed MW and generated MWh from renewable
sources, not only because of its competitive cost
but also because there is a great amount of this
resource in a big part of the country. However, its
development will go hand in hand with the evolu-
tion of the market and the resources made avail-
able by the regulatory bodies, to increase the use
of renewable energies and achieve the goals of the
Act 27191.
This Act, passed by common consent in 2015, set the
percentage of renewable energy that users of elec-
trical energy must consume up to 2025. The goals
and the estimate amount of renewable energy that
should be used to achieve such goals are shown in
table 8.
In 2017, only 2% of the energy consumed in the MEM
was from renewable sources, and out of this 2%,
only 23% was wind-generated energy. However, the
CC and the MATER Program have given dispatch pri-
ority since 2016 to 195 projects, which represents a
total installed capacity of 6,046 MW.

38 Cámara Argentina de Energías Renovables Annual Report 2018 39

 PROJECTS AWARDED
THROUGH JOINT PURCHASES
Due to Rounds 1, 1.5 and 2 of the
RenovAr Program and the Resolution 60 of those are wind projects and account for an in- If we want to consume the amount of renewable n order to calculate the percentage corresponding to
202/2016 the highest level of stalled capacity of 3,738 MW. energy required by the Act 27191 by the year 2025, the use of national components in a wind turbine,
commitment in the development we need to award 2,600 MW more than what has a weighting was given to each part, piece, system
of renewable energy projects has If all the projects awarded by the CC and the MA-
already been awarded. Wind energy projects should and/or production process of wind turbines, as can
been obtained. Out of the awarded TER Program had been carried out, there would be
4,966 MW, 2,911 MW correspond contribute with an extra 1,600 MW. be seen in table 9.
an annual generation of about 22 TWh, enough to
to 41 wind energy projects. In
achieve the goals set by Act 27191 up to 2020. Wind Apart from the mentioned benefit, the percentage
September of 2018, about 30% of these
energy would provide 70% of that amount, about 15 of CND was also used to choose a winner if there
projects were under construction
and a 100 MW power plant, the TWh a year. Challenges for future projects was a tie in Round 1 of the RenovAr Program Ten-
Parque Eólico Corti Wind Park, is der. Since the difference in offered prices was really
If we look at the projects awarded through CC and
already in commercial operation.
the MATER Program, we will realize that wind ener- small, the CND ended up being an essential variable
gy prevails among the rest. However, if we want this to determine the winning project.
PROJECTS AWARDED EVOLUTION OF THE WIND INSTALLED CAPACITY
type of technology to have a stronger representa- Since the percentage of CND has caught investors’
THROUGH THE (Detailed according to the contracting mechanism)
tion in the energy matrix and to take advantage of attention, important manufacturers like Vestas,
MATER PROGRAM
how competitive it is, we need to solve certain issues Nordex-Acciona and Enercon, have started to offer
MW
Out of the 19 wind projects that in the short term to provide investors with more cer-
4,500 equipment with the percentage of components re-
received priority of dispatch through
4,000 tainty. We are going to mention some of the aspects quired for it to be considered national.
the MATER Program, 9 correspond 3.7 GW contracted under 445
to the expansion of wind parks 3,500
the new legal framework
that need to be developed or improved to make the
3,000 827 However, the problem with the increase of the per-
which were previously awarded (Act 27191) development of new projects easier.
2,500 centage of national components is that technolo-
through the CC mechanisms. On the
other hand, there are two parks in 2,000 gists won’t be able to offer financing from the Export
an advanced state of development, 1,500 Increasing the Use of National Components Credit Agencies (ECA) belonging to their country of
1,000
2,466
which belong to two important origin. This means we would not have access to this
500 The Decree 814/2017 issued by the Argentine Execu-
consumers of the MEM: YPF (PE very important option. Secondly, due to the possi-
0 227 tive Power determined a 14% aliquot corresponding
Manatiales Behr) and Aluar (PE
to the import fee of the wind turbines with a capacity ble restrictions in the production capacity and the
2011

2012

2013

2014

2015

2016

2017

2018

2019

2020
Aluar). Lastly, there’s a park which
is already selling its energy through higher than 700 kW. However, the joint Resolution 01- time needed so that production complies with the
the MATER Program: Genneia’s GENREN and Res. 108 RenovAr
E/2017 passed by the MEyM and the Ministry of Pro- required standards, national equipment might take
Parque Eólico Rawson III Wind Park. Mater Other
duction states the minimum percentage of national longer to be delivered than imported equipment.
Source: EOS Energía, based on official data.
components that wind turbines must have in their Therefore, one of the challenges the sector will have
production chain in order to be considered “national”. to face in the following years would be to find tech-
If wind turbines reach this percentage, the investor or nologists who offer equipment made with more
TABLE 8. GOALS OF ACT 27191 AND ESTIMATED ENERGY REQUIRED TO COMPLY WITH IT* technologist can be exempted from paying fees when national components and competitive in terms of
it comes to the components showed in the Appendix I costs, volume and delivery periods. On the other
Year Estimated annual Goal Act 27191 Renewable energy required (TWh) of the Decree 814 and receive a fiscal certificate if 20% hand, the Argentine Government will have to pro-
demand (TWh) of the components of the electromechanical installa- mote financing sources to make national equipment
2018 135.0 8% 10.8 tions are national, including wind turbines. more competitive compared to the ones financed by
2019 137.7 12% 16.5 The percentage of the declared national component the ECAs of their country of origin.
2021 143.3 16% 22.9 (CND) increases as follows:
2023 149.1 18% 26.8 Access to the transmission capacity
2025 155.1 20% 31.0 35% up to June 20, 2020
Once dispatch priority for 6,046 MW was assigned
*Calculations based on the base demand of 2017 and an estimate annual rate of growth of 2%. 45% up to December 31, 2021 through CC and the MATER Program, the trans-
Source: Self-made table based on information provided by CAMMESA. 50% up to December 31, 2023 mission capacity indicated by CAMMESA has been

40 Cámara Argentina de Energías Renovables Annual Report 2018 41

 TABLE 9 – WEIGHTING GIVEN TO PARTS, PIECES,
SYSTEMS AND PROCESSES OF A WIND TURBINE.

LOGISTICAL MEETING Parts, pieces, systems, Weighting

subsystems and processes (%)
of a wind turbine
Blades 19.5
WIND TURBINES PER SEMESTER
Towers and its inside 23.0

2S 2017 10% Connection components 2.5

of the tower
Pitch System 3.5
1S 2018 23% IDENTIFIED Hub machining process 2.5
ASPECTS
Blade bearing 2.0
2S 2018 51% • Large-sized cranes
and extendable Hub assembly process 3.0
trucks are needed for Nacelle castings 3.0
1S 2019 16% the transportation
Case, columns, 2.0
of wind equipment.
nacelle frames
• High transportation Nacelle assembly 10.0
AMOUNT OF WINDTURBINES PER PORT (August 2018 onwards) costs.
Yaw System 2.5

Bahía 86 Power converter 3.0

Blanca 163 35% WORK IN PROCESS
Generator 5.5
• Meetings to
Puerto 53 increase the offer of Gearbox 11.0
Madryn 158 25% extendable trucks Drive Shaft 3.5
in the market.
Comodoro 56 Radiator 1.0
Rivadavia 40 58% Switchgear 1.0
SOLVED ISSUES
9 Transformer 1.5
Zárate
57 14% • Improvement of
Customs’ processes. Total Wind Turbine 100

Total 204 Source: Joint Resolution 01-E/2017 of the MEyM and the Ministry of
overall 418 33% • Resolution of points
in which trucks
Production

interfere in roads.
Wind Turbines Entered Wind Turbines to be Entered

• Improvement reduced. The report presented in August of 20181,

in highway
administration
shows big restrictions in the areas with more wind Out of the 41 wind
resources, like Patagonia, Province of Buenos Aires
processes.
and Comahue.
projects awarded, in
• Intervention of the September of 2018 a
However, the Ministry of Treasury has presented a
National Agency
Source: Investment Agency (INVEST) of Road Safety. plan to expand the transmission capacity under the third of them was under
1 CAMMESA, Informe Renovables, August 2018, Buenos Aires construction and one is
(available in http://portalweb.cammesa.com/Documentos%20
compartidos/Noticias/Mater/Informe%20Renovables%20AGO%20 in commercial operation.
2018.pdf).

42 Cámara Argentina de Energías Renovables Annual Report 2018 43

 NEW WIND PARKS 2018-2020 GRAPH 1 - EXPANSIONS OF THE TRANSMISSION CAPACITY UNDER THE PPP SCHEME
Monthly and cumulative values up to June of 2020, based on commitments made

450 3738 MW
3,738 MW 4,000

400 3,500

Cumulative installed capacity in MW

350
Start-up per month in MW

3,000
300
2,500
250
2,000
200
1,500
150
1,000
100

50 500

0 0
Jan-2018

Feb-2018

Mar-2018

Apr-2018

May-2018

Jun-2018

Jul-2018

Aug-2018

Sep-2018

Oct-2018

Nov-2018

Dec-2018

Jan-2019

Feb-2019

Mar-2019

Apr-2019

May-2019

Jun-2019

Jul-2019

Aug-2019

Sep-2019

Oct-2019

Nov-2019

Dec-2019

Jan-2020

Feb-2020

Mar-2020

Apr-2020

May-2020

Jun-2020
Stipulated COD

Round 1 Round 1.5 Round 2 Resolution 202/2016 MATER

Source: EOS Energía, based on data provided by CAMMESA.

scheme PPP (Public-Private Partnership). The aim of time there is an increase of renewable energies
this plan is to build over 3,000 km of extra high volt- in the Argentine energy matrix, it is necessary to Source: Ministry of Treasury

age lines (500 kV) in about three years (see Appen- make a decision as regards including energy stor-
dix). The call to present offers will be carried out in age systems.
three stages, between the third quarter of 2018 and
These technologies will optimize the use of the
the first of 2019. Some of the construction works that
transmission capacity and will be essential to ensure
will be carried out and that will allow the expansion of
that quality parameters of voltage and frequency are
the dispatch capacity for new wind projects are: LAT
being met. It will be extremely necessary to comply
Río Diamante – Charlone; LAT Vivoratá – Plomer; LAT
with these parameters when flow energies, such as
Charlone – Plomer; LAT La Rioja Sur – San Juan; LAT
wind and photovoltaic solar energy, have a stronger
Choele Choel – Puerto Madryn; ET 132/500 Como-
representation in the Argentine energy matrix. The
doro Rivadavia Oeste, among others (Graph 1).
current options are pumping systems, generation
On the other hand, since restrictions on the trans- technologies, hydrogen use technologies and sys-
mission capacity will result in a bottleneck every tems with electrochemical batteries.

44 Cámara Argentina de Energías Renovables Annual Report 2018 45

 Photovoltaic Solar Energy:
with falling prices and
the focus set on
small-scale projects
Between Rounds 1 and 2 of the RenovAr Program, this technology type
presented a big reduction in prices and added international participants.
Now, it is showing interest in the next MiniRen Tender.

T oday, there is no doubt that renewable ener-
gies are highly competitive. Over the years,
prices related to this technology type have dropped
to the point of what we know as “grid parity”. Con-
sequently, renewable energy is becoming an even
more competitive way to meet the global energy
demand.
This phenomenon, which has occurred in all the
technologies using renewable sources, has been ex-
traordinary in the case of photovoltaic solar energy.
Since 2010, the LCOE (Levelised Cost of Energy) of
the photovoltaic solar energy has dropped a 73%
and resulted in 0.10 USD/kWh for projects which
started its commercial operation in 2017. This cost
reduction is due to the huge technological advances
and the know-how increase of important develop-
ers of photovoltaic solar energy projects worldwide,
who are constantly looking for new markets to de-
velop their projects. The prices offered in the last
tenders, which set 2020 as the delivery period for
connection, show that this tendency towards low
prices will remain in the following years. According
to IRENA (International Renewable Energy Agency),
the low prices offered in tenders in Mexico, Dubai,
Peru, Chile, Abu Dhabi and Saudi Arabia in 2016 and
2017 confirm that the LCOF of the photovoltaic solar
energy will keep decreasing and might drop up to
0.03 USD/kWh.
Since Argentina must take advantage of its so-
lar potential and of this opportunity that pres-
ents itself globally. As can be seen in the following
maps, the area with most potential is located in the

46 Cámara Argentina de Energías Renovables Annual Report 2018 47

 GLOBAL HORIZONTAL IRRADIANCE DIRECT NORMAL IRRADIANCE PROJECTS PROPOSED IN ROUND 1
(GHI) IN ARGENTINA IN ARGENTINA

Province Projects Capacity Capacity

Factor
(P50)
Salta 9 829 34%
San Juan 14 558 29%
Jujuy 4 400 25%
La Rioja 7 318 29%
Catamarca 9 315 30%
San Luis 4 197 27%
Mendoza 8 124 27%
Córdoba 1 30 24%
Chaco 1 10 25%

Source: MEyM

© 2017 World Bank. Solar data: Solargis.
Northwest of the country, known as the NOA Re-
gion, which includes the following provinces: Jujuy,
Salta, La Rioja and Catamarca. The Global Horizon-
tal Irradiance (GHI) can rise up to 2,400-2,700 KW/
m2. At the same time, the Province of San Juan,
which belongs to the Cuyo Region, has high values
of irradiance, similar to the NOA Region, mainly in
the foothills.
Apart from those extraordinary values, the Central
and the Northeast areas of the country have a GHI of
about 1,900 kWh/m2, which is quite good if we com-
pare it to the European countries with the highest
installed photovoltaic solar capacity, such as Spain
and Germany.
Even though Argentina has great potential, there
were no signs of photovoltaic solar development
until 2016 when the RenovAr Program was imple-
© 2017 World Bank. Solar data: Solargis.
mented. Up until then, it represented a small per-
centage in the energy matrix, only 8 MW installed
in the country.
Participation in the
RenovAr Program
Tenders carried out through the RenovAr Program
were a considerable incentive to develop photo-
voltaic solar energy projects in the country. In each
round, quotas were assigned to each technology
type participating in the tender.
The tender in Round 1 was for 900 MW and 300 MW
were destined to photovoltaic solar energy projects.
However, the Government received 58 offers, com-
prising a total of 2,811 MW. In Round 1, 400 MW out
of the 1,142 MW, were assigned to photovoltaic solar
energy projects: 300 MW were awarded to JEMSE
(Jujuy Energía y Minería Sociedad del Estado) and
100 MW to FieldFare Renewables, projects located
in the provinces of Jujuy and Salta, respectively.
In November 2016, a new tender, Round 1.5 of the
RenovAr Program, was held in order to include those
projects which participated but didn’t make through
Round 1. Even though only 200 MW were destined
for photovoltaic solar technology projects, the Gov-
ernment received an offer for 28 solar projects, a total
of 925 MW. In this tender, quotas based on regions
were assigned to distribute projects among areas
with less resources but still viable: 100 MW to the
NOA Region and 100 MW to the rest of the country,
which included the other regions (Central, Cuyo, NEA,
GBA, etc.) In the end, 20 photovoltaic solar projects
were awarded in Round 1.5, a total of 516.2 MW.
To sum up, if we consider both tenders, 24 photovol-
taic solar projects were awarded comprising a total
of 916 MW, distributed among several provinces: Ju-
juy, Salta, San Juan, Mendoza, San Luis, La Rioja and
Catamarca. The regionalization goal was achieved.
In October of 2017, Round 2 of the RenovAr Program
was held. The tender was for 1,200 MW, out of which
450 MW were assigned to photovoltaic solar energy
projects. This time, a strong interest was shown in
this type of technology. Offers reached 5,279 MW,
that is, ten times more than the amount required by
the tender. The tender was regionalized again. Both,
the NOA and the Cuyo regions received a quota of
200 MW each (the maximum that could be award-
ed to the two regions in total was 350 MW) and 100
MW was allocated to the rest of the country.
In Round 2, 707 MW were awarded to photovolta-
ic solar projects and they were divided into seven
provinces: Catamarca, La Rioja, Salta, San Juan, Men-
doza, Córdoba and Santiago del Estero. This time,
projects were awarded to international players, like
NEOEN, Martifer Solar and Neuss Fund and to na-
tional players as well, such as 360 Energy and EPEC
(Empresa Provincial de Energía de Córdoba).
In 2018, a new tender is going to be held (MiniRen)
and it will cover projects of a lower-scale (up to 10
MW). Bid documents will be presented in October,
after this report is issued. This is going to be the first

48 Cámara Argentina de Energías Renovables Annual Report 2018 49


time that the photovoltaic solar energy and the wind Prices in Terms of
energy compete against each other without the ex- Technology in Argentina
istence of quotas based on technology type. This
If we pay attention to the tenders, it is easy to see
tender is extremely appealing for the photovoltaic
that the prices offered by the photovoltaic solar
solar sector since this technology works better in
technology dropped significantly. If in Round 1
smaller projects. On the other hand, each province
the tender was for about 60 USD/MWh (bid doc-
has a quota of 20 MW, which can be generated from uments set a maximum of 90 USD/MWh) and the
any type of technology. The photovoltaic solar en- offers received were for about 80-90 USD/ MWh,
ergy might be more suitable in some provinces lo- in Round 1.5 there was a considerable price re-
cated in the northwest, center and northeast of the
duction, since prices ranged from 48 to 56.7 USD/
country.
MWh. Besides, if we consider both rounds, there
was a decrease of about 30% in the prices of the
participating projects.
PROJECTS PROPOSED IN ROUND 2
In Round 2, prices dropped dramatically again in
Installed terms of technology. Prices of projects awarded
Capacity ranged from 40.4 to 52.3 USD/MWh and the ones
Region Projects Offered (MW) with prices of about 52 USD/MWh were located in
NOA 45 2,782 the region called “Rest of the Country”, which has
NEA 2 47 lower values of irradiance. We might think that this
price reduction was due to the fact that developers
Centro-Cuyo 50 2,450
had a better knowledge on the costs related to tech-
Total 97 5,279
nology and that the macroeconomic situation of the
50 Cámara Argentina de Energías Renovables
GRAPH NO. 4: PERCENTAGE OF JOB POSITIONS, BASED ON THE ACTIVITY. Stage O&M.
SOLAR 12% 33%
WIND 13% 27%
PAH 19%
BRS 7% 40%
BIOMASS 12%
BIOGAS 12%
Administration Operation
Source: self-made graph based on the data from Round 2, RenovAr Program.
country made people believe that there would to be
better financing options.
Even though this is hard to know, it is expected that
in the next MiniRen, prices will not decrease and they
might even experience a slight increase. This is be-
cause of the way in which the tender was designed:
the size of the projects (a smaller scale implies a
higher price, resulting from not making use of its
full potential) and the costs of getting finance in the
country, which got more expensive. However, recent
changes in the sector worldwide and the significant
drop in the prices of photovoltaic solar panels, EPC
and EPCM (Engineering, Procurement, Construction
Management) might revert the situation.
Currently, out of all the projects awarded, the only
ones which managed to start commercial opera-
tion until September 2018 were the following solar
parks: Caldenes del Oeste, (installed capacity: 24.75
MW), La Cumbre (installed capacity: 22 MW), both
located in the Province of San Luis, and Las Lomi-
tas (installed capacity: 1.7 MW) located in Albardón,
Province of San Juan.
43% 12%
45% 15%
46% 28% 7%
10% 43%
59% 20% 9%
58% 9% 21%
Maintenance Other
The PERMER Program
Since 2000, Argentina has had a specific program
that makes it easier for populations isolated from the
power distribution grid to access electrical energy.
Through the PERMER (Program of Renewable Ener-
gy in Rural Markets), isolated populations can have
access to clean energy, thus preventing social exclu-
sion. The Program offers subsidies to purchase and
install individual wind and photovoltaic energy sys-
tems (to supply electrical energy), solar systems (for
thermal purposes) and other photovoltaic systems
with a higher capacity (for production purposes).
The PERMER Program has the support of the World
Bank. It’s being financed with a loan from the IBRD
(International Bank for Reconstruction and Devel-
opment) and contributions from the Argentine Gov-
ernment and the provinces involved. Several prov-
inces have become part of the program and have
installed systems to supply energy to those with
no access to the distribution grid. They achieve this
mainly through the use of photovoltaic solar and
thermal systems, which are more suitable in this cir-
cumstances due to its characteristics. Since the Pro-
gram has been launched, mostly photovoltaic solar
systems have been installed in rural schools, public
services and households in all the provinces of the
country, especially in Salta, Chaco, Jujuy, Tucumán,
Corrientes and Neuquén.
Annual Report 2018 51
 Global Solar Council: the
role of Argentina in a
worldwide sectorial debate
Since CADER is a founding member of the GSC (Global Solar Council), it can
decide on the schedule and the priorities of the organization, whose aim
is to assure that the commercial battles between regions do not affect the
positioning of the photovoltaic energy.

T he GSC was officially founded in the Paris Sum-
mit, held in December of 2015, after many years
of conversations between associations of leading
and emerging countries. They thought it was essen-
tial for the sector of the photovoltaic energy to have
a unified voice before the multilateral institutions
who have control over the strategic decisions re-
garding sustainable development and its financing.
Based on the successful experience of the Glob-
al Wind Energy Council (GWEC) in the wind sector,
GSC’s aim was, and still is, to assure that the com-
mercial battles between regions (Asia, Europe and
the Americas) do not affect the global positioning of
the photovoltaic solar energy, which is the founda-
tion for the diversification of the global electrical and
energy matrix. The proposal’s objective was to cause
a shift in the paradigm, which goes beyond techno-
logical aspects.
Through the years, the GSC has formed alliances with
the International Renewable Energy Agency (IRENA),
the Renewable Energy Policy Network for the 21st
Century (REN21), the International Solar Alliance, the
International Energy Agency (IEA) and the Clean En-
ergy Ministerial (CEM). Together, they have strength-
ened their international positioning and managed to
cause a greater impact on policies, a lot more than
what they would have achieved individually.
CADER, which is highly committed to the achieve-
ment of these goals, has participated on the GSC
since it started and is a founding member of the
board of directors. Marcelo Álvarez has been reelect-
ed by common consent as a board member for two

52 Cámara Argentina de Energías Renovables Annual Report 2018 53

 more years. This allows him to decide on the sched-
ule and to determine the priorities of the institution.
In order to influence the global policies of the sector
and to improve the financing of the initiatives, the
GSC’s strategy is to write papers with market defi-
nitions, in relation to the coming convention, the
United Nations Framework Convention on Climate
Change (UNFCCC) in order to analyze them in the
Conference of the Parties (COP 26). It is expected that,
in this Conference, specific goals against the emission
of greenhouse gasses are established. Furthermore,
it is going to be determined how to finance those ac-
tors who are involved in protecting the environment.
An internal seminar was carried out with national
associations in the GSC’s annual assembly, which
was held simultaneously to the Solar Power Inter-
54 Cámara Argentina de Energías Renovables
national USA. The seminar covered the regulatory
frameworks for utility-scale plants and the distrib-
uted generation. The analysis was focused on mod-
els that explain how to stimulate the industry, the
remuneration of the injection, how to optimize the
use of available surfaces in urban areas and the role
of distributors. The idea was to write the experiences
in the virtual forum of the Ibero-American network
of associations, in their web page, to increase local
knowledge in the region and save time and money.
In 2019, the three meetings of the GSC’s board of
directors will be held in Brussels, Shanghai and Salt
Lake City (in the Solar Power International). In these
meetings, the aim is to agree on global political ac-
tions and develop advocacy strategies against the
multilateral alliances and national governments.
Annual Report 2018 55
 Bioenergy:
specific requirements and
positive externalities
These sources, which add value to their places of origin and turn waste into
resources, have a lot to offer to Argentina, a country in which agroindustry
plays a very important role. A summary with the situation of biogas,
biomass, ethanol and biodiesel is presented below.

T he bioenergy sector in Argentina keeps show-
ing positive results. More and more projects
are being developed or carried out and the sector
is maturing. The synergies provided knowledge and
experience and the technological structures of in-
ternational quality have been strengthened. This is
due to the fact that our engineering resources and
equipment meet the standards of the best and most
demanding markets in the world.
The number of projects of biogas and dry biomass
(it naturally contains a moisture content lower than
60%, like wood, agricultural  crops wastes, among
others) increased significantly between Round 1 and
2 of the RenovAr Program. This means that the sec-
tor is interested in investing in this type of technol-
ogy: 6 biogas and 2 biomass projects were awarded
in Round 1 while in Round 2, 32 and 16 were awarded
respectively (without counting that 3 landfill biogas
projects were awarded).
Out of all the projects awarded, 6 are already in com-
mercial operation. 4 of them are biogas projects: Río
Cuarto I (2.00 MW) and Río Cuarto II (1.20 MW), both
located in the Province of Córdoba; Yanquetruz (1.20
MW), Province of San Luis and San Pedro Verde (1.42
MW), Province of Santa Fe. The other two are bio-
mass projects: Pindó Eco-Energía (2.00 MW), Prov-
ince of Misiones and Prodeman (9 MW), Province of
Córdoba.
CADER considers that the interest of companies
related to biogas and dry biomass is growing since
they are coming up with ideas and proposals that

56 Cámara Argentina de Energías Renovables Annual Report 2018 57

 LOCATION OF BIOENERGY PROJECTS AWARDED IN ROUNDS 1, 1.5
AND 2 OF THE RENOVAR PROGRAM
Biogas Projects
37 projects – 64.9 MW
In Argentina, the experience and knowledge acquired
after the execution of new projects allow different
SMEs, working in the areas of metal mechanics, con-
Biomass Projects Landfill Biogas Projects struction and processes, to identify development
18 projects – 157.7 MW 3 projects – 13.1 MW
opportunities and become specialized suppliers. If
some equipment and components are produced in
the country, the national industry might be able to
complement itself with or compete against the in-
ternational industry.
The project development as well as its technical and
financial execution will evince the successful aspects
of the program but they will also show the aspects
that might need to be improved in future programs.
Since projects were awarded, businesspeople and
developers have felt uncertain about some aspects.
This means that PPAs might not be entered into due
to a lack of financing.
Among other initiatives, CADER is formulating pro-
posals to get more quotas for the biogas technology
in the energy sector, to take advantage of its thermal
capacity, to use it as a main fuel and to design finan-
cial strategies for the last two cases mentioned.
Currently, banks do not accept PPAs as a guarantee
for project finance. They also need requirements like
personal and financial guarantees, or other instru-
ments. Even though some agricultural or agro-in-

SO URCES

G AS
B IO
Source: MEyM
FR
OM

BI
will contribute to the development of the sector in Renewable Energy1, biogas and biomass projects

OG
AS
Argentina. The sector turns wastes into energy re- awarded by the RenovAr Program have created 497
BIODIGESTERS

TO
sources to generate primary firm and distributed new job positions in the construction stage and 45 in

B
energy; to create investment opportunities in the the operation and maintenance stage up to August

IOM
regions; to add value to the place of origin of the of 2018. These numbers will turn into 2,305 and 738

ETH
n
sources; to promote circular economies and to cre- respectively, once all the projects are in process. t io PURIFICATION

ANE
ta
ate new businesses in the productive sector.

or
l fo r t ra n s p
It is hard to count the co-benefits and the external-
INJECTION
ities produced by bioenergy projects, but the public

INTO A GRID
Biogas Technology

fue
USES
sector and CADER are working on it in order to show

n
The biogas sector has proven to generate added

ea
the multiple benefits obtained though the develop-
Cl

value in communities and regions where projects LIQUEFACTION
ment of the sector. For example, biomass projects, CNG/bio-NVG
are carried out, not only locally but also worldwide. Compressed Natural Gas
and especially biogas projects, are the ones which
It also contributes significantly to the environment LNG/bio-LNG

create more job positions based on installed capac- Liquefied Natural Gas

RT
through the reduction of CO2 emissions and the sup-

PO
ity. There are two stages: the construction stage Nitrogen
ply of biofertilizers which result from the biodiges-

NS


(which lasts three years and whose areas with more Hydrogen

RA
tion process. T
job positions in demand are mounting, electro- D
AN

mechanics and civil work) and the operation stage P
U
ET-

(which lasts for about two decades and requires 1. Generación de Empleo. Energías Renovables. RenovAr and MATER
N E S
Programs. August of 2018. Undersecretariat of Renewable Energy BIOMETHA

workers for the operation and maintenance areas). (available in https://www.argentina.gob.ar/sites/default/files/em-

According to a report from the Undersecretariat of pleorenovable.pdf).

58 Cámara Argentina de Energías Renovables Annual Report 2018 59

 dustrial producers who are interested have a large
number of personal assets that can be used as a
guarantee, for some investors these requirements
are hard to meet.
The bank sector acquired more knowledge on finan-
cial engineering. They have learnt to analyze biogas
and biomass projects, which have unique and spe-
cial features. This knowledge gain will allow them
to differentiate projects which are well structured
to those which are not. This will probably mean that
better proposals will get better access to financing.
As regards the SPE (Special Purpose Corporation), it
would be necessary to adapt its concept in order to
improve the use of waste resources or the resources
produced by those companies making up the SPE.
The challenge is to make these changes without
turning this adaptation into a fiscal or economic ob-
stacle to develop and finance the project.
The requirements imposed to the SPEs which re-
ceive fiscal incentives, apart from the main activities
of the SMEs, caused that less offers were presented
in the past tenders. Agro-industrial businesspeo-
ple constantly request that the biomass and biogas
sector receive a special treatment. Participants of
these sectors have a background in agricultural and
agro-industrial SMEs and are not experienced in the
commercial sector of large-scale energy projects.
Therefore, they have a different view on the energy
business and its correlation with their main produc-
tive activity.
Another pending issue, which is important to the
sector, is the special treatment given to the import-
ed components necessary to build biogas power
plants. Since energy is generated from wastes and
effluents, biogas not only makes an important con-
tribution to the balance of trade during the project
cycle, but also helps to mitigate CO2 emissions, mak-
ing it easier to achieve the goals set by the country
on climate change.
On the other hand, there is a challenge when it
comes to communication. The sector has to ex-
60 Cámara Argentina de Energías Renovables
press its needs to decision-makers so that incen- ects not only related to the energy generation, but price round, since it offered a higher price than the
tive mechanisms are implemented to promote the also to the thermal power and fuel generation. maximum set. The other 16 projects were awarded,
development of new biogas projects. The diversity 14 in Phase 1 (117.22 MW) and the other two (26 MW)
of situations and sectors makes it hard to define in Phase 2. The total installed capacity awarded be-
those mechanisms, which are highly important to tween the two phases was 143.22 MW.
strengthen the sector. Dry Biomass By September of 2018, the contracts of 10 projects
Another important challenge is to achieve synergy There was an increase in the number of dry biomass had been entered into and 2 of them are in commer-
between different organisms and the public-private projects in the Round 2 of the RenovAr Programa, cial operation or about to deliver energy. As regards
dynamic in order to decide on actions that improve since positive modifications were made to the con- the other 6 projects, some have problems to define
the development of the sector, appreciating the ditions stated on the bid documents of Round 1. This financing, but they are on the right path to solve
positive impacts of biogas in the environment. is evidenced by the number of offers made: 5 offers them.
As the sector evolves, we are faced with more so- for 44.5 MW were presented in Round 1 and 20 were
However, as it was previously indicated, these proj-
phisticated demands which require new abilities. Our presented for 187 MW in Round 2.
ects are more complex than the ones related to other
contribution to developers has changed from pro- The current situation of dry biomass projects is var- technologies, since different variables are involved,
moting the sector to focusing on more operational ied. Only 3 of the 20 projects presented did not meet obtaining biomass being the main one. This is why
aspects, like quality services and safety regulations the technical requirements for different reasons. Re- the project finance for this sector has not been com-
to have a risk-free sector. garding the rest, only 1 did not make it through the pletely developed yet. However, if more projects are
At the time we were finishing writing this text, au-
thorities announced the date for Round 3 of the
RenovAr Program, known as MiniRen. We are wait-
ing on the bid documents of this tender, which will
be held in October of 2018. For this new call, the fol-
Double membrane gasholder | Emission protection foils
Foil gas accumulators | Single membrane covers
lowing is being considered: to eliminate the concept
of SPE; to allow more simplicity in the presentation
Leakage detection systems
of offers and to eliminate determining aspects which
were not necessary for this specific sector. On the
other hand, it was announced that the inflationary
adjustments and incentives expected in Round 2
have been eliminated, which means that it might be
possible to obtain a lower price for each MWh. This
translates in lower profitability, which might result in
affecting the development of new biogas projects in
the country.
To sum up, certain aspects show the advances of the Baur Folien GmbH  +49 83 34 99 99 1-0
biomass and biogas sector in Argentina. However, Gewerbestraße 6  +49 83 34 99 99 1-99
other aspects evince the need for special consider- D-87787 Wolfertschwenden  info@baur-folien.de
ations and to receive more incentives, not only from Germany d www.baur-folien.de
the State but also from the provinces and distrib-
utors. In this way, we can guarantee the successful
execution of a large number of projects awarded in
the RenovAr Program rounds and other new proj-
Annual Report 2018 61
 developed this will definitely be the right type of fi-
nance method for them.
Most biomass projects are developed based on the
waste obtained from the owner’s productive pro-
cesses, that is to say that investors are also the own-
ers of the raw material, since they own the process
which originated it.
This situation makes a lot of sense, since investors
take advantage and add value to wastes that oth-
erwise would be a sub product for which there is no
market.
Based on the results of Round 2, investors who did-
n´t have much knowledge on the market of biomass
projects are interested in participating and invest-
ing in these businesses that bring local and financial
benefits, such as: producing firm capacity, creating
job positions through the project life cycle and de-
COMPONENTS
FOR BIOGAS PLANTS
AGITATORS, PUMP SOLUTIONS, SEPARATORS
PAULMICHL GmbH Kisslegger Straße 13 · 88299 Leutkirch-Germany · info@paulmichl-gmb.de
62 Cámara Argentina de Energías Renovables
veloping local and regional economies (especial-
ly when it comes to using biomass as a fuel). Even
more interest has been shown in making other local
investments, for example, to produce more biomass
through forestations or other ways. Besides, bio-
mass projects require more local components that
can rise up to a 70%. That is to say, all the civil work
plus the 70% of the electromechanical components
can be purchased in the country, bringing benefits
to the local industry.
In order to achieve all of this, the dry biomass sec-
tor (and the rest of the renewable sources) must be
considered essential in the future. We have to keep
developing the market and stick to the conditions
established in Round 2. Furthermore, we have to im-
prove the production, logistics and supply markets
and the financing methods, which are extremely im-
portant to the successful execution of projects.
www.paulmichl-gmbh.de
Biofuels add value to
the agro-industrial
chain.
Bioethanol
The global generation of bioethanol set a new record
in 2017 with a production of 102.4 million cubic me-
ters. Most of it was produced from corn in the United
States and from sugar cane in Brazil. Both countries
make up for the 85% of the global production. The
European Union takes third place. Argentina is the
seventh largest producer, accounting for 1.1% of the
total. 83% of this production is used as fuel.
In Argentina, the Act 26093/2006 (Regime to reg-
ulate and promote the sustainable use of biofuels)
and the Decree 109/2007 state that liquid fuels have
to be diluted with biofuels for the next 15 years, and
provided the legal framework for the development
of the sector.
In 2016, the Decree 543 increased the mandatory
amount of bioethanol that should be present in pet-
rol to a 12% (E12) and promoted an equivalent of-
fer of ethanol produced from sugar cane and corn.
This increase in the amount of bioethanol resulted in
large investments to produce bioethanol from corn.
Today, that demand is met by twelve companies that
produce it from sugar cane and provide about 525
million cubic meters (48%) and 5 companies that
produce it from corn, which provide 550 million cubic
meters (52%). The installed capacity in the country
is 1.26 million cubic meters. Producers are working
to its maximum capacity and so far, there are no re-
mains to export. In September of 2018, investments
were used to expand the installed capacity, and
some of them will start commercial operation in the
following months.
Argentina exports almost 70% of the corn it pro-
duces, in the form of unprocessed corn. Having the
chance to produce bioethanol at a commercial scale
increases the offer of liquid fuels in the country and
improves the development of regional economies,
with its resulting investments and new job positions.
It also contributes to the sustainability of the pro-
ductive system, since it takes corn to regions which
are far from the ports.
Biodiesel
The production capacity of the biodiesel industry
reached, according to official data, 4.5 million tons
a year, due to the large investments made after the
Act 26093 was passed and came into force. The Act
has regulated the promotion and use of biofuels for
the past ten years.
Legally speaking, according to section 7 of that act
and its complementary regulations, gas oil has to be
diluted with a 10% of biodiesel in the internal mar-
ket. However, oil companies do not always comply
with the act completely.
About 30 companies, mostly SMEs, supply the bio-
diesel demand to the hydrocarbon refining compa-
nies in order to comply with the mandatory dilution.
The rest is supplied by big plants which are not part
of the value chain, that is to say, they don’t produce
soybean oil, the main input used in Argentina.
Since there is a large amount of production and ca-
pacity which is not being used in the industry, it
would be convenient and technically possible to mix
gas oil with a 20% of biodiesel in people and load
transportation, the agro-industry and the electricity
generation. This is why it is essential that the Argen-
tine Government includes this topic as a priority in the
productive agenda of the different areas involved.
Annual Report 2018 63
 Synergy between Nation,
companies and provinces:
the challenges of promoting
the distributed generation
The diversification of the energy matrix is not just a technological shift. It’s
as change in the paradigm, in which regionalization, the small scale and
the participation of citizens should be the foundation.

A rgentina is about to implement the regulation

framework that authorizes citizens to inject
throughout the country the extra generated energy
obtained from renewable energy equipment such as
solar panels, biomass and biogas technologies and
low capacity water or wind turbines. How can the
development of this market be propelled?
On December 27 of 2017, Act 27424 was published in
the Government gazette. This act created the regime
to promote the distributed generation of renewable
energy put into the public electric power distribution
grid. CADER has eagerly contributed to this initiative
since its start ten years ago, to the extent that it be-
came one of its management priorities.
27191, knowing that later on there would be a specific
framework for this initiative: Act 27424. During those
days, we had internal debates in CADER and in the
Alliance for Renewable Energy in Argentina (AERA)1.
We participated in the redaction of the first drafts of
the act and summoned different political forces with
representation in the Congress. Therefore, we could
make a regulation that we all agreed on and that had
a big chance of being passed by common consent in
the Congress.

When this debate started, we realized it was not nec-

essary to include this regulation as part of the Act 1. www.aera.org.ar

64 Cámara Argentina de Energías Renovables Annual Report 2018 65

 BENEFITS OF THE
DISTRIBUTED GENERATION
It is worth highlighting the
advantages of this energy model
based on renewable energies:
• It avoids spending foreign currency
used to import fossil fuels.
• It decreases the need to invest
in the electrical transmission.
• It regulates voltage in
low capacity grids.
• It guarantees energy security
by diversifying the use of
different types of technologies.
• It promotes the development of
companies in regional economies.
• It requires a large workforce.
• It decreases the emission
of greenhouse gasses.
• It rationalizes the demand
and brings awareness about
energy efficiency.
We can and must take advantage
of these benefits, which are not
the only ones, especially today
that the country is going through
an energy emergency, that results
in spending millions of dollars
in the purchase of foreign fuel.
66 Cámara Argentina de Energías Renovables
The aim of the original draft was to promote the use
of renewable energy distributed through a model
based on a temporary special rate. This was going
to be used until energy prices went back to normal,
that is to say, until they were as competitive as fossil
fuels which were subsidized. We consider that, once
this goal is achieved, it would be necessary to imple-
ment a method to measure net energy.
Many people intervened in the making of this draft
which, in the end, adopted a model of “net billing”.
Its main advantage is that it doesn’t affect the cash
flow of distributors or electric utilities (it multiplies
the number of suppliers but it almost does not affect
the cash flow, unless there is a significant injection of
extra generated energy, which is unlikely due to the
discouraging rates). However, it also has issues, like
in the case of solar roofs, which don’t take advantage
of the total available surface. Only the fraction nec-
essary for self-consumption is used.
Even when the resulting document can be im-
proved, it is useful to ensure a good implementation
that promotes the activity. We maintain that the di-
versification of the matrix should not be just a tech-
nological change but a shift in the paradigm and we
express it every time we have the chance to do so in
debates. The change in the paradigm implies the re-
gionalization and the change in the scale of projects,
involving the participation of citizens. We consider
that these have to be the foundations for the pro-
cess, not benefits. This is why the process of adapt-
ing and implementing the new model is essential to
the success of the distributed generation. In other
words, it means it should be done in a faster, more
efficient and cheaper way.
With the regulation decree and the consecutive offi-
cial resolutions that the National Secretary of Energy
will publish, according to its announcements, in the
following months conditions will be set so that res-
idential, commercial and industrial users can evalu-
ate the opportunity of improving their economy and
energy security, taking advantage of the benefits
provided by renewable sources.
Relationship between the National
State and the Provinces
Based on what has already been explained, we con-
sider it is essential to find the appropriate synergy
between distributors, provincial governments, us-
ers, the National Government and the ones who are
part of the chain. The thing is that, if there are less
obstacles when equipment is being installed, the
market will progress faster. In that sense, the goal of
reaching 1,000 MW in the next twelve years, which
was set by the National Secretary of Energy, can be
easily achieved in a shorter period of time if we have
appropriate comprehensive policies.
For the past ten years, CADER has worked intense-
ly to achieve efficiency in the supply chain and has
contributed with the process of training human
resources. We have proved through professional
research how convenient it is in economic terms to
replace thermal distributed energy, which ends up
being expensive, polluting and inefficient. Another
key aspect is to obtain a financing strategy to con-
tribute with the initial investment. That is why we
have expressed this concern to the authorities and
public and private banks.
2018, year in which the Act 27242 of Distributed
Generation was analyzed by the energy portfolio
REGULATORY FRAMEWORK FOR RENEWABLE ENERGIES
Federal Scope
All users of the distribution system.
NEW FRAMEWORK
PROMOTION OF
DISTRIBUTED
Incentives for Promotion GENERATION
Interest Rate Subsidy Act 27424
+ bonus based on capacity.
Fiscal certificate.
of all the provinces, was useful to bring to light that
different commercial and industrial sectors have
great interest in using renewable energy systems.
Many government authorities became aware of the
economic benefits caused by these systems, and
especially of the consequences in the reduction of
subsidies towards the electrical energy rate. Indus-
trial parks, businesses from big cities and the rural
sector of a big part of the country are amongst those
showing interest. Why? Clean energy solves two
problems: the increase of the energy rate and the
supply of electrical energy in an independent way.
Actions taken by the provinces
Before the Act 27424 was created, many provinces
passed their own local regulations regarding distrib-
uted generation.
The regulations that stood out were the ones from
the provinces of Mendoza, (Act 7459), Salta (Act 7824
of Net Balance), Santa Fe (Prosumer Program), San
Luis (Act 921), Neuquén (Act 3006), Misiones (Act 97
of Net Balance) and Jujuy (Act 6023). In some cases,
they are already being applied. The concepts in the
regimes of the provinces may differ from the ones in
the Act of Distributed Generation.
Regulation Framework
Net-billing.
Technical regulations.
FODIS (Fund for the Distributed
Generation of Renewable Energy)
Trust fund for promotion.
(500 million Argentinean pesos)
Annual Report 2018 67
 Quality Control Systems:
CADER’s Proposal
Another important aspect to be considered is the
process of quality control in the facilities. Due to the
scale, it is impossible to certify each connection indi-
vidually. Therefore, we consider it is necessary to es-
tablish a system of authorized installers who can be
controlled by sampling techniques. In this way, we
could get the grades based on the result obtained
by installers. This was a successful system in Ontar-
io, Canada, and it had a low transaction cost. If the
State and the institutions involved are not able to
implement this method – or they decide they don’t
want to – CADER offers to do it or to participate with
other institutions in a transparent system, without
artificial commercial barriers, with the aim of main-
taining the required quality and safety levels.

Change in the Making

Based on the factors mentioned, we have a great op-
portunity before us to transform the energy matrix.
We even have the advantage of counting with the
knowledge acquired by other countries. These coun-
tries’ resources have less capacity than the resources
in Argentina. We are getting closer to achieving the
challenge of turning users into “prosumers”. We just
need to find a consensus to work towards the same
direction, including the public and private sectors in
the debate meetings.

68 Cámara Argentina de Energías Renovables

 Sectorial meetings on
renewable energies: a
great opportunity
Since 2018, this spaces for debate, encouraged by the national Government
and with the participation of the public and private sector, give us the chance
to analyze the problems of the sector together, with the aim of facilitating its
development.

A t the beginning of 2018, the Government pro-

moted the Multi-Sector Meeting of Renewable
Energy, so that the actors of the private and public
sphere are able to analyze together the different sit-
uations and problems that the development of the
market is facing in Argentina.

In CADER we really appreciate and value the creation

of this space, since we can discuss critical aspects
that need specific solutions from the State and the
private sector. We hope that in the future, the pro-
posals that were presented by the different commit-
tees are implemented by the authorities, so that we
can promote and facilitate the development of clean
energy in Argentina.

70 Cámara Argentina de Energías Renovables Annual Report 2018 71

 SECTORIAL COMMITTEES
In order to increase the level
of efficiency in the working
agenda, four sub-committees
were created throughout 2018::
Simplification Sub-committee
Its aim is to gain full access to
the benefits of the Act 27191:
• Fiscal benefit.
• Custom benefits.
• Registry of suppliers.
• Self-generation projects.
Labor Sub-committee
• Adherence to the ART (Labor
Risk Insurance Company) Act.
• An update of the Collective
Working Agreements (in order to
enhance the development of the
industry and the employees).
• Training plan: identify the needs
and tools required to improve the
employees’ technical skills.
Transport Competitiveness
Sub-committee
• Availability and costs of
equipment and services.
• Certifications and requirements
for the transport of oversized
loads in national, provincial
and municipal routes.
Finance Sub-committee
• RenovAr Projects.
• Development of the Renewable
Energy Term Market and
self-generation projects.
• Strengthen the chain of suppliers
of renewable energies.
72 Cámara Argentina de Energías Renovables
CADER’S Proposal
Considering that the distributed generation from re-
newable sources has grown significantly, we think it
would be useful and necessary to create a sectorial
committee to meet the needs of SMEs, who are ded-
icated to this niche in the different provinces.
There are new and important challenges coming,
that will require that the State and the private sector
to work together. Some of these challenges are: na-
tional and provincial regulations, quality standards
for equipment to be installed, connection protocols,
injection measurements, development of human
and material resources, lines of credit for specific
promotions, aspects related to the development of
the chain of suppliers, among others.
Financing: sine qua non
condition for renewable
energies
At national level, big efforts have been done for the development of the sector,
but the rest of the path is intricate with no financial conditions backup, with
feasible terms and interest rates for this kind of projects.
T
he balance of the evolution of renewable energies Multiplying almost 13 times the installed power of
may be considered positive. Nearly three years renewable energy does not result in a simple task.
after the enactment of Act 27191, two calls for bids Infrastructure issues, logistics, transport, customs,
have been held. They resulted in the awarding of 147 bureaucracy, equipment availability and labor are
projects, which added 4,67 MW of installed capacity some of the questions to be answered to continue
(50% more than expected.) This power corresponds, moving forward in the diversification of the power
largely, to solar and wind technology, with 1,733 MW matrix through the renewable sources. Financing is
and 2,466 MW respectively, followed by biomass (158 another topic and, as well as the others, must be ad-
MW), biogas (65 MW), the small hydroelectric projects dressed jointly between the private and public sec-
tors to achieve successful results.
(PAH, 32 MW) and biogas from solid waste
Likewise, as regards the MATER, the first semester In this context, an important step was the creation,
of 2018 shows an accumulated result of 1,080 MW, in June 2018, of the Multisectorial Committee for
with priority of dispatch to deliver power to SADI, Renewable Energy, which seeks to address these
based on power contracts among private parties, issues.
which totalizes power of 5,547 to be installed in the As an appendix of this committee the subcommit-
next four years. tee of Financing emerged. Public banks and CADER
Annual Report 2018 73
 participate, the latter as one of the representatives
of the private sector, in order to move over the lim-
itations experienced by the sector when satisfying
the needs of capital, especially for low scale projects,
such as self-generation, biomass technologies and
biogas, and the domestic providers of renewable en-
ergy. Even though progress is still slowly emerging,
it represents an important space to find common
ground, improve understanding and mitigate the
risks in the sector, which is starting development in
the country.
Distributed generation
As regards the distributed generation segment, un-
derstood as installations of small and medium scale
near consumption points, the dynamics is less vig-
orous. The regulatory framework for users requiring
below 300 kW is Act 27424, Regime of Promotion of
the Renewable energy distributed generation inte-
grated in the public power network. Despite being
enacted in December 2017, today it has not been
regulated, which represents a significant obstacle to
the development of this sector. It is a market niche of
emerging development, featuring great opportunity
as regards jobs generation and an incentive to the
development of local parts and services suppliers re-
lated to minor power installations.
While there are transversal problems in all scales of
renewable energy facilities, when dealing with chal-
lenges and opportunities faced by companies as re-
gards financing, it is suitable to separate the analysis
between large power projects, such as MATER call
for bids, and minor scale projects, like those named
“distributed generation.”
74 Cámara Argentina de Energías Renovables
RenovAr and MATER
As a review, in Agosto 2018 there are 225mW oper-
ative from projects awarded in call for bids. 200 mW
out of those 225mW are provided by wind parks. An
amount of 55% of projects awarded in rounds 1 and
1.5 are under construction.
As regards funding, according to official sources,
70% of the 29 projects awarded in round 1 of the
RenovAr program, for 1,142 MW, has been funded,
situation repeated in the 47% of the 30 solar and
wind projects (for 1,281.5 MW) from round 1 and half
of the 10 contracts renegotiated through Resolution
202, totaling 500mw.
For Round 2 (88 projects for 2,043 MW), perspec-
tives of financial closure have become harsh, which
is specially reflected in the increase of the interest
rate; it is a result of the macro economic instability
affecting Argentina since April 2018.
In consolidated terms, even though the progress
showed in financial closure of projects is not worth-
less, by August 2018 there are still companies which
did not achieve this goal. Explanation is found in
several reasons, detailed below to gauge the com-
plexity faced by the sector, although it is not an ex-
haustive analysis.
In consolidated terms, even
though financial closure
of projects progressed,
by August 2018 there are
still companies which are
not achieving the goal, for
different reasons.
Financial context
The “financial storm” started in Argentina by the end
of April 2018 is undoubtedly an ingredient for this
context, which complicates the funding of projects,
especially in Round 2. However, although it could
be considered as the straw that broke the camel’s
back, reality shows that more structural issues are
dragged, keeping relation with the sector emerging
in the country, with no expertise as regards local
banks and companies involved in its development,
and with a need for joint learning. Its terms do not
comply with the contracts or regulatory frameworks.
Some of those obstacles are related to the risk per-
ception associated to renewable energy generation
by domestic credit entities, as they still have no track
record locally, as international experience fails to be
an indicator. Another aspect to be added consists of
the lack of expertise of some players, not only at the
time of technically structuring the projects, but also
in the process of the funding process; this situation
worsens if international banking is needed, with cost
overrun and logical delays for the first experiences.
As regards specifically small-scale projects, specifi-
cally for biomass and biogas technologies, the dif-
ficulties to reach financial closure are linked with
the perception by financial institutions of some risk
and complexity in the provision of the resource for
power generation, so they are less attractive than
other technologies. Besides, sponsors for such proj-
ects, usually consortiums with the same farmers, are
characterized by having a limited capacity of finan-
cial support. Simultaneously, given the lower power
of these projects, associated figures are disadvan-
taged when encouraging evaluation and structuring
of credit compared to other options of larger energy
generation capacity. On the other hand, cost struc-
tures linked to complex financial engineering, like
syndicated loans, are prohibitive; therefore, these
projects are limited to the domestic banks, in which
rates and/or repayment terms do not comply with
the expected TIR. Even when the project was strong
enough, the requirement of surety bonds for the to-
tal amount of the loan during the construction and
the joint and several bonds of shareholdrts generate
overruns and obstacles hard to be overcome.
Project funding, first stages
On the other hand, there is a gap between customs
and practices for international renewable energy
projects funding and those available domestically.
The modality of Project Finance with no resources
Annual Report 2018 75
 from the shareholder has a very low penetration rate
locally, despite being clearly suitable for these dis-
tinctive projects for their stability and income previ-
sion once facilities are operating; this occurs not only
because such modality was absent for the produc-
tive sectors for the last 20 years; but also because
interest rates are higher, thus turning the project
unaffordable.
The larger cost of this funding is the result of having
the income flow of the project as the only repayment
source of debt, which implies higher risks for banks
and also higher costs when structuring. Si subse-
quently the project does not start operation in the
terms and conditions agreed, the bank has no other
resource to get payments. Probably, as projects end
the construction stage and start generating power,
this financing modality will become more frequent.
Up to now, most projects were funded according to
the Corporate Finance modality, which is character-
ized as a traditional credit structure. The borrower
provides security interest (assets, mortgages, com-
FUNDING OF THE SECTOR
10
PROJECT FINANCE
7-8%
INTEREST RATE (USD)
* Estimated increase of prices for Round 2
CLOSED FINANCING
ROUND 1 ROUND 1.5 RES. 202
70% 47% 50%
• Corporate finance instead of Project finance (a be reverted)
• Structuring through Multilaterals and ECAs (to be expanded
with commercial banking)
76 Cámara Argentina de Energías Renovables
pany balance sheets) for the loan, additional to the
repayment of the credit with the project funds once
operative. For large companies, this scheme may
be the most convenient, as it is less expensive that
Project Finance. However, it becomes unsustainable
for projects with sponsors that do not have the pos-
sibility to ensure the required volume of debt.
In general, there is a direct relation between the fi-
nancial quality/capacity of the sponsor, the scale
of the project and the financial alternatives with-
in the specific needs. Additionally, more common
technologies, like wind and solar power, with great
technicians and international experiences pave the
way. This also comprehends international promo-
tion agencies (ECAs) from the countries of origin of
technicians, which provide funding with more con-
venient costs and terms. As projects are farther from
that cluster of conditions, the difficulties and needs
for technical and financial expertise intensify.
Distributed power
Several problems described for the projects in bids
are shared with the projects of distributed genera-
tion. Without addressing the need for regulations
about the connection to power networks, the cur-
rent status of the financial conditions does not sup-
port the development of the sector.
It is important to highlight the relevance of such
conditions when incentivizing distributed genera-
tion. Currently, there are players which are obliged
by Law 27191 to self-supply power from renewable
sources; the percentage started in 8% in 2017 and it
will grow up to 20% in 2025. In this context, the op-
tions consist of getting supply from joint purchases
by CAMMESA, buying clean power form a generator/
primary marketer through a PPA or self-generation.
For the last two cases, but specially for self-genera-
tion, there are limits for funding installations. Mat-
ters such as the lack of a fund flow ensuring repay-
ment of investment (the flow in self-generation is
the cost of power avoided,) the lack of working capi-
tal financing for the purchase of inputs, or the credit
conditions incompatible with the repayment of this
kind of investments (oscillating between 4 and 8
years according to the province where the project is
located) negatively affect the segment expansion.
However, in 2018 there were announcements about
“green” credit possibilities by the commercial banks;
those possibilities consist of funds granted by inter-
national organizations, aimed at providing conditions
for power efficiency or renewable energy projects
Popularization of such possibilities and the improve-
ment of conditions offered up to now, which would
allow the repayment of the credit with the savings
generated, would bring hope to distributed power.
National production of components
National components integration in the industry of
renewable energy is beginning and, even though
the percentage of the supply of national pieces and
parts has increased between the first and the sec-
ond bids of RenovAr, it is important to analyze the
dynamics of the industry, besides the bids from the
National Administration.
The production sector is diverse and, according to
the technology we would refer to, we can find from
large companies, like suppliers of wind turbines, to
SMEs and engineering companies that supply elec-
trical components, metal structures, special cables
and transformers and parts for solar farms. These are
the metal mechanic and electric companies which,
with no specialization in this market, still can supply
parts, consequently resulting in an opportunity for
the segment to move forward in the specialization
in this market.
However, for the transition to be feasible, it is nec-
essary to have a financial support to level the do-
mestic industry in terms of the convenience offered
by foreign companies supported by ECAs or turnkey
contractors and their financing plans with subsi-
dized rates. In some cases, incorporation of nation-
al components means the sponsor cannot obtain
financing from ECAs, and, therefore, the sponsor
must recourse to the support of the domestic banks
to finance the percentage considered locally. How-
ever, most domestic suppliers are typically SMEs,
for which the access to capital for work is a restraint
translated in higher manufacturing costs.
From CADER, alternatives to different governmen-
tal agencies and state-owned banks have been
submitted; they could improve the conditions for
local suppliers. As an example, a typical practice of
commercial banks is to prefinance the manufacture
according to the balance sheet of companies, which,
in most cases, is not enough for the volume of cap-
ital required.
Given the great development required by the do-
mestic market, the historical balance sheets are not
enough to grow along the RenovAr and MATER proj-
ects. One option for this could consist of bringing
the capital forward with backup in the contract sub-
scribed with great technology companies. Addition-
ally, it is crucial to improve competitiveness through
reduced-rates credits, or the creation of a local fund-
ing source for this long-term projects as to allow sup-
plement of the external funding (whether through
ECAs or commercial banks.) Therefore, given the
short terms of projects (construction) and the long
terms (operation), such credit could include a long
tranche and a short tranche, so as to avoid the risk
of construction affecting the long-term trench rate.
Finally, as regards the distributed generation sector,
its regulation creates the Fund for the Distributed
Generation of Renewable Energy (FO-DIS), as instru-
ment to promote installation of this kind of equip-
ment through loans, discount of interest rates for
credits, discounts for acquisition of systems, bonds
and fiscal credits, among others. CADER understand
that such fund is a cornerstone for the operation of
Annual Report 2018 77
 the small and medium scale segment, as well as for
the development of the whole value chain associat-
ed. Incentives must be available both from the offer
and demand; that is to say, they must be aimed at
providing financial support for suppliers of instal-
lation and services as well as financing those users
interested in self-generation.
In summary
Advantages, positive international contexts and
contributions to renewable energy for the country
are clear: generation of jobs, domestic productive
activities, federal investments, diversification of the
power matrix, generation of non-contaminating en-
ergy, productive transformation of previously inop-
erative areas, power provision in isolated sector and
reduction of gases. They are some of the most rele-
vant aspects. The challenge for Argentina is also rel-
evant: changing the power matrix generation, from
an under-2% partipaction of renewable energy to
20% in less than 8 years.
78 Cámara Argentina de Energías Renovables
The reality shows that the change to renewable
sources worldwide is out of discussion and our
country is no exception. That is expressed in the
commitment in the agenda of the UN about the sus-
tainability of the productive activity and the aware-
ness about climate change impact; the fall in prices
experienced by the renewable technology in order
to transform into a competitive alternative, and the
possibilities of greater autonomy provided by the
diversification of the matrix into renewable gener-
ation sources. What is true is that it is here to say.
It is also true that, nationally, considerable efforts
have been made for its development. However, ac-
cording to achieve the goals in Act 27191 and the
low figure of distributed generation facilities, there
is still a long way to go. The road is impassable with
no financial conditions supporting with terms and
interest rates making feasible the development of
the sector. The current context looks unclear about
the feasibility of having such support in the short
term. Meanwhile, it is relevant to continue working
jointly with financial entities in terms of regulations
and tariffs so the renewable momentum is final.
Annual Report 2018 79
 Transmission:
a bottleneck that
requires decisions
The regime of expansion of the high voltage transmission system has
been proved unsuitable for the medium and long term challenges.
Uncertainty about its evolution is discouraging.

D espite several previous announcements, just

now in September 2018 the call for bids is seen
closer for the extension of the extra high voltage
The opinion considers the following aspects:

a) The feasibility and argument of contracting

electricity transmission system, imperative for the
sustainable increase of the generation of electrical
power from renewable resources.
For that purpose, the Secretary of Public Private
Partnership (PPP) issued its opinion prior to the call
for bids or public competition for awarding the ul-
timate entering into of a public private partnership
contract for the PPP project “Extra Alta Tensión en
500 kV ET Río Diamante - Nueva ET Charlone, Esta-
ciones Transformadores y obras complementarias
en 132 kV.”
through the entering into of a PPP contract,
with previous intervention of the public private
partnership unit, stating the reasons for which
public interest is better served through this
resource instead of other available contracting
options.
b) T he impact of expenses or increases arising
through this contracting will have on the fiscal
outcome goals in the corresponding budget
regulations.
c) The estimate of the financial and budget
effects of the contract during the periods in
which it will be executed.

80 Cámara Argentina de Energías Renovables Annual Report 2018 81


d) The estimate of the sufficiency of flow of
public resources during the validity of the
contract and for each committed budget period,
for the execution of the contracted covenants.
e) Externalities arising from the project,
including the estimate of the probable flow of
future incomes generated by its development
in favor of the corresponding areas.
f) The impact provoked by the project in the
creation of jobs and in the encouraging of
SMEs and in the national industry in general,
indicating the number of direct and indirect
job positions estimated to be created, as well
as the ratio of the participation of the national
industry in general and, specially, of SMEs,
both directly and indirectly, during the contract
execution.
g) The social and environmental impact
provoked by the project..
h) The evaluation of cost/benefit as regards
the contract mode, considering risks in case of
contract termination.
i) The evaluation about the equitable
distribution of risks determined for the parties
according to the principles in section 4 of the
applicable law, which shall be equal to what is
stipulated in the contract.
j) Other information which may allow the
evaluation of the convenience of executing the
project through a public private partnership
contract.
82 Cámara Argentina de Energías Renovables
OTHER PAPERS FROM
THE PPP SECRETARIAT
• Preliminary report of the
Impact of the tax
(former) Ministry of Energy.
• Techincal report about
environmental considerations for
reform in renewable
the (former) Ministry of Environment
and Sustainable Development.
• Technical report issued by the
energy projects
Public Credit National Office.
Beyond evolution registered as regards the referred
call for bids, it is an open secret that authorities are
revising the regime of extension of the high voltage
Modification of the fiscal regime stipulated by the end of 2017 by Act 27430
transmission system. This has been proved unsuit- affects works of renewable generation which are both under construction
able to face the medium and long-term challenges, and considered for the future. Here, a review of the main changes arising.
not only for the addition of several power plants
from renewable resources, but also for the new con-
ventional offer which shall be added from the “gen-
eración térmica emergencial” (“emergency thermal
generation”) (resolution SEE 21/2016, March 22nd,
2018), and the one aimed at improving the efficiency
of the offer (resolution SEE 287 - E/2017, May 10th,
2017) through the call for projects of new thermal
generation from the ending of the combined cycle
and cogeneration project, besides providing the
Sistema Nacional de Interconexión, SADI (National
Interconnection System) with better assurance as
regards supply1.
It is not clear if evolution aims at an autonomous
A ct 27430, published in the Official Bulletin
on December 29th, 2017, modified the fiscal
regime of Argentina. These changes impact both
Income Tax
Aliquot and management of dividends
concessions regime (today, independent carriers are the renewable energy generation projects cur- All profits obtained by corporations, including
not grantees, but they receive a technical license rently under construction and future projects. This subsidiaries of foreign companies, are subject to a
from Transener) or if it will be included in the own- is why detailing the key modifications produced is fixed rate, according to the following scheme:
ership concession of Transener. Certainly, lack of de- appropriate.
cision in the topic is a clear problem for the private
initiative to offer solutions to the development de- Fiscal period Rate
manded by the high voltage transmission system, 2017 35%
whilst the State has showed it cannot replace it.
2018-2019 30%
2020 thereafter 25%
1. This matter has been analyzed in “Responsabilidad de los
transportistas por la actividad de los transportistas independi-
entes” (Liabilities of the carriers for the activities of the indepen-
dant carriers), in Revista Argentina de Derecho de la Energía, Hi- Additionally, companies starting periods on Janu-
drocarburos y Minería (Argentine Magazine of Energy, Hydrocarbon
and Minining), RADEHM, N°. 8, February-April 2016, page 163.
ary 1st, 2018 and distributing dividends as regards
Annual Report 2018 83
 accrued results from such fiscal period, shall apply
tax rates according to the following:
Withheld over
Fiscal period
Distributed dividends
2017 Equalization tax
2018-2019 7%
2020 thereafter 13%
Equalization tax, valid only for the 2017 fiscal period,
involves that, when dividends are paid or utilities ex-
ceeding the accumulated profits as of the end of the
immediate previous exercise to the payment or dis-
tribution date are distributed, 35% of such exceed-
ing amount must be withheld in the nature of only
and definite payment.
Thin capitalization - interest deduction
Rules of thin capitalization are modified. It is estab-
lished that interests (as well as exchange differences)
of debts of financial nature, incurred with subjects
(residents or not), shall be deducted up to the annu-
al sum stipulated by regulations to that effect (still
undetermined) or up to the equivalent of the 30%
of the net income of the exercise before deducting
both interests and amortization, applicable to the
largest amount.
Update
A new update mechanism is established in the In-
come Tax, on the cost of acquired goods or invest-
ments in the fiscal periods starting on January 1st,
2018 onwards.
The new adjustment mechanism shall be applied
on the base of percentual variations of the Indice
de Precios Internos al por Mayor, IPIM (Domestic
Wholesale Prices Index), provided by the Instituto
Nacional de Estadística y Censos, INDEC (National
Institute of Statistics and Census of Argentina.)
84 Cámara Argentina de Energías Renovables
Adjustment for comprehensive inflation In Regulatory Decree 409/2018, an increase in the Fiscal Pact
The last case shall be applied according to the fol- computable percentage on the 33% of the sum of
In addition to the tax reform, a fiscal pact was includ-
lowing considerations: such tax for the fiscal year 2018 was established.
ed. It comprehends several commitments between
• Exercises starting in 2018: the adjustment It is important to explain that the following scheme the State and the provinces to reduce the charge of
could be representative of the progression, although
applies if inflation of the exercise surpasses certain taxes with cascade effect; that is, there is an
33.33 per cent. the decree does not specify which would be the pro- accumulation through the productive process and
gressive increase for the upcoming fiscal years: supply chain.
• Exercises starting in 2019: the adjustment
applies if accumulated inflation of the exercises Such pact involves the commitment of provinces for
2018 and 2019 surpasses 66.66 per cent. 2018 2019 2020 2021 2022 the progressive decrease of the Gross Income Tax
33% 50% 67% 84% 100% and the Stamp Tax during the next five years.
• Exercises starting in 2020 and future
exercises: the adjustment applies if It is deemed important to review these modifica-
accumulated inflation of the last 3 exercises tions in order to evaluate their impact in the profit-
surpasses 100 per cent. ability of the renewable energies projects.
With the tax reform, the possibility to decide a reval-
uation of certain goods to tax-accounting purposes
is established:
Tax and accounting revaluation
Tax and accounting revaluation of certain goods
considered in the assets of taxpayers, and their val-
ues being outdated after the inflationary processes
frequent in Argentina, is possible.
Revaluation is of discretionary nature, and it shall be
applicable only once in the closings after December
30th, 2017.
It should be pointed up that such revaluation in not
applicable on assets subject to the benefit of accel-
erated amortization, stipulated in Act 27191.
Check tax
According to Act 24732, the Executive Power is
empowered to progressively increase the pay-
ment in advance of the tax on bank debits and
credits, which should be, from 2022, deemed as
tax credit fully.
Annual Report 2018 85
 Renewable energies:
a state policy
Sebastian Kind, National Subsecretary of Renewable Energies
F rom December 2025, the development of re-
newable energies sources for the power gen-
eration became one of the cornerstones to achieve
larger diversification of the national power matrix,
with competitive technologies in terms of costs and
low environmental impact.
The regime of national promotion for the employment
of such sources, created by Act 26190 and modified
and extended by Act 27191 and its regulatory decree
531, 2016, established the bases for achieving such
goal. It stipulated minimum goals as regards contri-
butions of renewable energies sources to the power
matrix. Likewise, it also determined the mechanisms
for fulfilling such goal and created the reassurance
and promotion instruments, necessary for generat-
ing trust and predictability for long-term investment.
86 Cámara Argentina de Energías Renovables
RenovAr and MATER
The RenovAr program, launched in May 2016, was
the first mechanism through which we moved for-
ward towards a better participation of the renew-
able energies in the power matrix, with results that
were improving along the subsequent stages, both
in terms of amount of offers received and nation-
al prices and content. In total, for all technologies
tendered, 146 projects were awarded, spread in 21
provinces, for a nominal power of 4,441 MW. If the 10
projects with adjusted contracted are added, about
500 MW framed in Resolution 202, 2016, the figures
reach almost 5GW of renewable power; half the en-
ergy needed to reach 20% of the demand by 2025
determined by Act 27191.
Annual Report 2018 87
 The second mechanism considered in the Act com-
prehends the creation of the MATER(Renewable
Energy Generation Program), which enables the
Large Users (GU), with average annual power de-
mands equivalent or surpassing 300kW, to comply
with the goals stipulated through self-generation
o contracting of renewable energy generators. It in-
volves a discount in the charge of the power reser-
vation and the exemption on the payment of trading
charges and management of joint purchases carried
out by CAMMESA following instruction of the Na-
tional administration, on behalf of the entire power
demand.

All this is regulated by Resolution 281 of 2017, aimed

at creating the conditions and providing concrete
economic incentives, so that contracting or self-gen-
eration with renewable energy is perceived by GU as
a real opportunity. It is noteworthy that, at present
time, renewable energy, particularly wind and solar
power, is an economically convenient alternative,
with prices well below the values that GU face today
in the wholesale market, and even only a fraction
of the current price when contracts are long-term
structured.

Today, with prices of imported fuel costs rising and

the cost of renewable technology equipment in
decline, the competitiveness of clean energy is an
obvious reality. This is proved with the 89 requests
for priority dispatch for power of 4,079 MW, from
which 41 projects have been assigned, for a total of
1,009.8 MW, which equals 20% awarded accord-
ing to the RenovAr program. For their part, the GU
who have decided to end joint purchases reach 42
members, reaching demand for 6 TWh (19% of the
total demand by GU), which clearly expresses the
economic convenience of assuring power supply in
the long term.
Considering jointly the RenovAr Program, Resolu-
tion 202 and MATER, a total of 5,941 MW distributed
in 197 projects is observed, of which 86 are already
generating energy or under construction. This trans-
lates to 4,400 million dollars being invested across
the country, creating jobs with high added value and
contributing to a cleaner, safer and cheaper for the
country Argentine energy matrix.
National content
Among the objectives set by Law 27191 the devel-
opment of policies aimed at promoting domestic in-
dustry through the local production of capital goods,
parts and components for the production of equip-
ment for power generation from renewable sources
throughout the country is determined. For this pur-
pose, the promotion regime establishes the right to
receive a tax certificate by the beneficiaries who, in
their investment projects, prove certain percentage
of integration of national components in electrome-
chanical facilities, excluding civil works and transpor-
tation costs and mounting equipment in accordance
with the provisions of Decree 531 of 30 March 2016.
To meet this objective, it was necessary to create a
specific regulatory framework that would rule the
integration conditions to be met by goods to be
considered national and therefore allow project be
computed for the issuance of the tax certificate. That
is the origin of the joint resolutions of the former
Ministry of Energy and the Ministry of Production
123/2016 and 1/2017 and Decree 814/2017.
As a result of the measures taken and the interest
of the industrial sector to gain an increasing share
of the construction and development of new power
generation projects from renewable sources, a nota-
ble increase in the local content among the various
rounds of the RenovAr program was detected; such
national content increased from a weighted average
of 14% in Round 1 up to 30% in Round 2.

88 Cámara Argentina de Energías Renovables Annual Report 2018 89

 In the case of wind power technology, incentives
in the regulatory framework and potential of the
domestic industry to participate in the value chain
managed to get the interest of major internation-
al wind turbine technicians to locate their plants in
our country. This is evidenced in the increased of
the CND, which grew from 11% in Round 1 to 37% in
Round 2, with projects reaching 85%. As regards so-
lar photovoltaic technology, foreign companies have
landed in the country for manufacturing structures
and solar trackers.
The abundance of renewable resources, the size of
the Argentine market and the strength of the mea-
sures taken under the RenovAr program, the Term
Market and the recent Distributed Generation Act
sponsor a favorable horizon for industrial develop-
ment linked to the diversification of the power ma-
trix based on renewable energy sources.
ating 17,500 jobs by 2020, out of which 15,500 cor-
respond to the stage of construction and assembly
of plants, and 2,000 for the operation and mainte-
nance of projects. Full report is available . 1
Distributed generation
Under the goal of encouraging the development
of renewable energy sources for power generation
throughout the territory, reducing losses in trans-
port and promoting rational consumption, Act 27424
of Distributed Generation was enacted in December
2017. This act sets policies and legal and contractual
conditions for the generation of power from renew-
able sources by users of the distribution network for
their own use, with eventual contributions of sur-
plus into the network.
frastructure, which is the commitment that the Gov-
ernment assumed and plans to carry out through the
PPP program tenders for 2,400 km of transmission
lines, or restraining, avoiding risks of congestion. The
latter is the alternative that we now take as long as
the planned works will require a runtime that will
place the entry of new capacity in the medium term.
In this context, and aiming at continuing the policy,
initiated in 2016, to promote the incorporation of re-
newable sources for power generation throughout
the territory, the launch of a new tender for 400 MW
for projects up to 10 MW, ie small scale, has been an-
nounced for the month of October 2018. This will di-
rect investments in non-traditional players (agricul-
ture, SMEs), thus generating economic and technical
benefits to the power system and encouraging the
deployment of a value chain associated with proj-
ects connected to medium voltage networks.
Macro-economic situation
Although renewable energies are not separable from
the domestic and international economic situation,
the structure of assurances supporting their develop-
ment has shown its strength and credibility from local
and foreign investors, even in times of financial tur-
bulence. Projects are moving forward and obtaining
funding according to previsions, thanks to the iron-
clad risks (in terms of politics, economy and finances)
attached to the way in which they were structured,
both for the RenovAr program as well as MATER.
After nearly three years of administration, it can be
said that the development of renewable energy has
become a state policy in Argentina, with a promising
horizon both in terms of the energy sector itself, as
well as in the positive economic and social distribution
generated by its deployment throughout the country.

Its content, as well as the regulatory decree and min-

isterial resolution, with its draft available for public

Jobs discussion, has been the result of the joint actions

of the former Ministry of Energy, Ministry of Pro-
In a domestic context of progressive construction,
duction, Ministry of Education, Ministry of Finance,
installation and commissioning of wind power gen-
AFIP, the regulating entities, distributors, coopera-
eration parks through renewable energy sources,
tives, provincial governments and business cham-
the Secretariat of Renewable Energy incorporated a
bers. Among other issues, this Act will comprehend
new perspective of analysis for the incidence of the
the technical specifications, the connection authori-
sector on the employment dimension. Coordination
zation procedures and details of the billing scheme.
of Cooperation conducted a survey through a ques-
As regards terms, it is expected to have both reg-
tionnaire included in the bid documents within the
ulatory decree and the resolution for execution in
Round 2 of the RenovAr program. From more than
October 2018.
200 offers and the data supplied by the companies,
an indicator was designed to measure and evaluate
the creation of direct jobs: the IEDER, which shows
the amount of jobs per MW for each of the technolo-
Round 3 - MiniRen
gies promoted by the RenovAr program (wind, solar
photovoltaic, small hydroelectric, biogas, biomass, Limitations in the transmission network are now-
biogas from landfills). adays the major bottleneck to continue adding
power on a large-scale to the system. This reality is
The main result of the published report stresses that
approachable in two ways: expanding the power in-
the development of all projects of renewable ener-
gy generation already awarded under RenovAr and
1. https://www.argentina.gob.ar/sites/default/files/empleoren-
with dispatch priority for the MATER will involve cre- ovable.pdf

90 Cámara Argentina de Energías Renovables Annual Report 2018 91

 Power generation
panorama: contributions
for a collective vision
In order to influence the definition of sustainable policies for the sector,
CADER participates in this platform, aimed at stimulating public
debate about the future power generation of the country with technical
foundations.

2018-2040 CADER Panorama The program Escenarios Energéticos Argenti-

CADER supports and participates in the develop-
ment of the Plataforma Escenarios Energéticos1
(Power Panorama Platform), an initiative aimed at
promoting, with technical foundations, the debate
about the power generation future of the Republic
of Argentina. Contributing to the definition of sus-
tainable policies for the sector is its goal.
In that process of a joint creation of a long-term
vision, academic institutions, professional partner-
ships and private companies, and the State partic-
ipates through the Subsecretary of Panorama and
Evaluation of Projects.
1. http://www.escenariosenergeticos.org/
na 2040 (Power Generation Panorama Argentina
2040), in its third edition, included nine work teams
in 2018. Among the most relevant key aspects of this
scenario, it is highlighted that the development of
the matrix must be compatible with the established
objectives for national and global decarbonization to
reduce the emission of greenhouse gases. In 2040,
the power matrix of Argentina should include a per-
centage sufficiently low of fossil generation as to ful-
ly remove such generation in 2050. The world con-
text encourages the adoption of ambitious goals and
the penalty for emissions provoking climate change.
In this sense, the reduction of the social and environ-
mental cost of the measures aimed at the change of
perspective from centralized generation to distrib-

92 Cámara Argentina de Energías Renovables Annual Report 2018 93

 uted generation must be ensured. It is also neces-
sary to prioritize industrial policies of local integra-
tion and keep a competitive average cost of power
(MWh).
From this perspective, it is deemed necessary to
maximize the co-benefits of energization: creation
of local jobs, power safety, environmental improve-
ment, regional development, among others. In re-
newable energies and their enabling technologies
(control/storage), a sharpest decrease of their cost
can be foreseen, deeper than the traditional options
along the considered period. Low cost, high impact
measures precede transport and storage infrastruc-
ture investments, as it has previously occurred in
high penetration cases.
It is also ensured to extend the system flexibilization
to include variable renewable sources in the power
matrix. It is also set out the rational use of power (in
Spanish Uso Racional de Energía, URE) and avoiding
the effect of compartmentalization (lock-in) leading
to keep the use of fossil further essential in the tran-
sition and stranded assets with its consequential so-
cioeconomic cost.
CADER adopted every efficiency measure in its max-
imum dimension. The considered renewable ener-
gies penetration goals are:
By 2025: 28%
By 2030: 39%
By 2040: 60%, equivalent to 77,937 MW of
renewable energies, 30% biogas in ducts.
International Context
Globally, as well as in Argentina, the variable renew-
able energies(ERV, as per its acronym in Spanish, en-
ergias renovables variables) today show the lowest
costs as regards electricity generation in approved
sites. Both for wind power and solar power technolo-
94 Cámara Argentina de Energías Renovables
gies, costs of O&M and capital tend to decrease due
to constant improvements in efficiency and plant
factors, according to learning curves with well-es-
tablished rates, which provide reliability to forecasts
of scenarios. The raise in the cost of GHG emissions
translate in growing advantages for renewable ener-
gies; this is explained in the cost charged directly on
the fossils (like carbon price, similar to taxes applied),
in the financing differential cost for this sources (fa-
vorable climate funds), in the trade measures (like
customs barriers) or in investments (investments
withholdings and stranded assets in fossils.)
The relative reduction of demands of power due to
URE in transport, both for home and industry sup-
ply, will be enhanced by synergy in the simultaneous
adoption of renewable energies, particularly near
the final use. This determines efficiency surpassing
20%, which is not part of the model. This occurs in
the electrification with digitalization and smart net-
works for addition of ERV distributed in those three
sectors, such as the application of solarthermal en-
ergy home and industrial automation.
Bioenergies
The rest of the demand involving fluid fuels may
be supplied with advanced biofuels. Cogeneration,
which reduces the combustion of hydrocarbures
itself, will be increasingly fed with this bioenergetic
vectors, as it occurs today with sugarcane bioetha-
nol. The production of second generation biofuels
might be very significant in several regions, thus
reducing the consumption of natural gas and other
fossils from low cost biomass sources and improving
the exportable surplus. There are niches that might
be very competitive in Argentina because of low
production costs of biomass: exporting maritime or
aviation bunker fuel, with a positive impact on the
trade balance. The synthesis of hydrogen (H2) at low
cost to be used in biorefineries may also capitalize
the ERV power surplus.
Bioethanol and biodiesel could be replaced by bio-
methane and second generation biofuels tion in
transport and seasonal uses. Biomethane injection
pipeline in scale and used as transport, like CNG ,
could be implemented very quickly with decreas-
ing costs. This way, injection in ducts would surpass
30% by 2040. Later, this could be supplemented
with advanced biofuels and then with derivatives of
power-to-gas.
Sustainable transport
An increase in the penetration of smart and electric
vehicles would decrease the demand of vectors for
internal combustion engines, both fossils as bioen-
ergetics, thus cheapening the transition. The mas-
sive amount of new and used batteries of vehicles
would increase the electrical storage capacity at low
cost of the entire system.
positive environmental impact. Regarding indepen-
In the industrial and residential sectors, heat and co-
dence and trade balance, the import of natural gas is
generation through biomass, as well as measures for
reduced in the long term due to the domestic pro-
responding the demand, will achieve the reduction
duction of biogas and other bioenergy vectors.
of the use of fossil fuels where distributed electric
power and solar energy are considered insufficient. The goal of replacing the fossil sources for renew-
These and other actions based in the user’s change able sources (wind and solar photovoltaic power in
of behavior in these trailing sector will transform the particular) in the energy system, with its consequent
demand curve, thus reducing the need for backup increase in strength, has only been achieved in the
with fossil generation. The key role of hydropower power system, and, in a minor scale, in the demand
plants would be providing support to ERV, consid- from other sectors. It is expected that other techno-
ering the seasonal surpluses, especially in Summer, logical options that take advantage of local resourc-
for solar energy. It would be possible to couple ERV es make the power matrix more diverse and reliable:
near the connection point to optimize the utilization bioenergetics of second and third generation, geo-
factor and transportation. The flexibility of the pow- thermal, concentrated solar thermal, offshore wind
er matrix largely depends on whether variability in power, wave power, power-to-gas. Each and every
relation to the demand curve, and its administration one of them have great potential and contribute
is optimized with the decentralization of the genera- significantly to the decarbonization, the flexibility of
tion and measures from the consumer’s perspective. the system and the trade balance.
Our panorama presents very high figures as regards In short, it starts with an economy dominated by
jobs generation, like other co-benefits of renew- high subsidies for production and consumption of
able energy: regional development, energy safety, fossil fuels, which are the basis of a centralized pow-
Annual Report 2018 95

er system based on such fuels for more than a cen-
tury. Before 2030, it will be required to revert this
scheme to take advantage of the economic, social
and environmental benefits of a new decentralized
paradigm in power generation, based on its rational
use. The policies and measures seeking to facilitate
the incorporation of renewable sources, prioritizing
the system flexibility and progressive national in-
tegration in the necessary investments to minimize
costs and external dependence.
Towards a shared vision of the
power transition Argentina 2050
The MEyM (Ministry of Energy and Mining) and
representatives of institutions that are part of the
executive committee of the Platatorma Escensario
Energéticos(Power Scenario Platform), Fundación
Avina, ITBA, CEARE-UBA and FARN) presented this
initiative as part of the national power planning pro-
cess. The 22 invited institutions cover a broad the-
matic spectrum.
The power transition consists of three main areas:
ensuring the access to power, promote sustainable
energy and energy efficiency. Likewise, this transi-
tion is linked to the international agreements (Paris
Agreement and DS 7 Goals) for the commitment of
countries to present long-term strategies for reduc-
ing emissions, beyond announcements in the Na-
tional Contribution 2030, and it is a work area of the
G20, under Argentina presidency.
96 Cámara Argentina de Energías Renovables
THE FOUR CORNERSTONES
PROPOSED
• Safety: Resilience in risk
management, optimal combination
of sources; achieve regulatory
environment for optimal supply
sources; diversification as a safety
factor by itself; integration with the
world and the region as reduction
of risks; proposed indicators;
tension between self-supply and
power integration; goal to achieve
consistency within indicators.
• Environmental sustainability:
definition and indicators (GHG
emissions, contaminants, charge
and recharge of ecosystems.)
• Efficiency and competence:
Regulatory frameworks to incorporate
flexible markets conditions.
• Inclusion: Improvement in life
quality; constant challenge in access
because of territorial features of
Argentina (climate diversity and low
density in rural areas,) affordability
and equity; indicators (percentage of
participation of the cost of power in
the total basic basket for a 4-members
family, coverage of subsidies for
low-income households, positive and
negative Impacts of projects in the
life quality of local population, etc.)
FIVE DISCUSSION TOPICS
• Diversification of the power matrix
• Power efficiency
• Technological innovation
• Challenges of climate change
• Institutions; regulatory
frameworks, institutional structures
and market mechanisms.
Bringing down myths
As it occurs in other fields and despite its proven benefits, renewable
energy also faces questions without scientific basis. Below is a list of
prejudices and their refutations.
T
he benefits of using renewable sources, prov- Renewable energies do not ensure the pow-
en by experience over the last forty years, have er supply and need backup of other energy
been confronted in various media, with no scientific sources.
basis. Given the evident competitiveness that clean
The power systems constituted by renewable en-
technologies have reached and their exponential
ergy sources in balance compensate the individual
market penetration, these arguments against the
variations, so that dispatch takes advantage of the
energy transition have been refined. Argument af-
system flexibility.
ter arguments, such statements are refuted with the
publication of a document titled Mitos y Realidades
(myths and reality.) Renewable sources will never supply the whole
demand of humanity.
The combination of renewable sources allows the
Renewable energy can only exist if they are
subsidized. satisfaction of all power needs for an indefinite peri-
od, as shown in several scenarios of 100% renewable
The photovoltaic, wind and solar powers are today
energy matrixes.
lower cost options in all cases of adequate resources,
as evidenced in Argentina.
The environmental impact of renewable en-
ergy is of the same magnitude as those from
conventional non-renewable energies from
fossil fuels and even nuclear power.
Analysis of the life cycle of all the technological op-
tions carried out by several organizations and rec-
ognized research groups confirm that emissions of
greenhouse gases and local im- pacts of renewable
energies are always much lower than those of fossil
and, in several aspects, have an advantage on the
nuclear energy in the transition.
Annual Report 2018 97

The development of renewable energy means
losing millions of jobs.
Studies by Irena confirm that transition to renew-
able energy sources creates many more jobs than
those lost.
The low price of natural gas threatens renew-
able sources.
Natural gas can compete with renewable sources in
different niches only with several types of subsidies.
Solar power cannot mitigate the expected
global warming.
Available solar power would be sufficient on its own
to substitute every fossil fuel in the power matrix,
and its penetration is the most favorable of all.
A solar device requires too much energy to
be manufactured when comparing it with the
power generated during its life span; solar
power is still very expensive.
The energy produced by the photovoltaic modules
is ten to one hundred times greater than that used
during the manufacturing process. For this reason,
the technology reached lower costs than other
sources.
Wind turbines operate only a fraction of the
time.
The capacity factor of wind turbines at suitable sites
is more than 50% greater than that of the hydro-
98 Cámara Argentina de Energías Renovables
electric plants of the Limay River basin. Due to geo-
graphical distribution, national wind farms have very
low probability of simultaneous non-productive pe-
riods.
Wind farms affect the values of real estate,
fragment natural habitats and have an impact
on wildlife, especially on birds.
Experience over forty years in the world confirms
that impacts are much smaller than those of other
developments where appropriate socio-environ-
Annex
mental assessments are completed, which occurs
according to the required regulatory system. There
are no cases of concrete hazards to biodiversity or
decrease of regional real estate values.
Biofuel production requires food that other-
wise would be used for human consumption.
It’s been shown that the use of residue and energy
cultivations is compatible with the sustainable man-
agement of agricultural and productive systems in-
tended for human consumption, so the use of bio-
fuels may be increased with a very low cost through
proper planning.
Annual Report 2018 99
The PPP project in relation to
the Electricity Market
The project is named “Linea de Ex- tenance services; therefore, it will be tion and the future Charlone trans-
tra Alta Tensíon en 500 kV, ET Río necessary to build facilities, accord- former station (besides their expan-
Diamante - Nueva ET Charlone, ing to the conditions in contractual sions.)
Estaciones transformadores y obras documents.
The associated 132 kV lines and the
complementarias en 132 kV.”
The main project consists of the in- linked transformer stations are sup-
The PPP contract is aimed at the terconnection in 500 kV between plementary works.
provision of operational and main- the Rio Diamante transformer sta-
The 500 kV high voltage line be-
BOLIVIA
tween the Rio Diamante transform-
JUJUY PARAGUAY
er station (in the province of Men-
San Jacinto
doza) and the transformer station to
SALTA
Cobos
CHACO FORMOSA be built in Coronel Charlone (in the
Monte Gran Formosa

El Bracho
Quemado
Chaco province in Buenos Aires) will have
MISIONES

CATAMARCA
TUCUMAN
Santiago Resistencia
P. Patria Yaciretá
San Isidro
an approximate length of 487 kilo-
Ricón
Lavalle SANTIAGO
DEL ESTERO SANTA FE meters.
LA RIOJA Garabí
Recreo Mercedes
Romang
LaRioja Sur CORREINTES BRASIL
CÓRDOBA
On the other hand, the 132 kV lines
SAN JUAN ENTRE
Malvinas
S. Tomé
RÍOS Salto Grande
will have an approximate length
Río Grande Almafuerte
Luján
Embalse Arroyo
Río Coronda

C. Elía
of 422 kilometers. The table below
Cabral Rosario San Javier
Gran
Medoza SAN LUIS Oeste
Ramallo
URUGUAY shows the approximate lengths of
Campana
CHARLONE Atucha
MENDOZA
BUENOS AIRES
Belgrano
Smith
each of the lines described:
Río Diamante 25 de Mayo Ezeiza Abasto

CHILE
Henderson
LA PAMPA
Macachín
Olavarría Line Length
NEUQUÉN Puelches
G. Brown
L. La Lata
Bahía Blanca
LAT 132 kV single circuit line
P. Banderita
71 km
Coronel Charlone – Laboulaye
A. Cajón C. Costa Piedrabuena
El Chocón
Choele
R. P. Leufú Choel

P. del Águila LAT 132 kV doublé circuit line

Alcurá 78 km
RÍO NEGRO
Coronel Charlone – Rufino
Puerto Madryn
LAT 132 kV single circuit line
Coronel Charlone – General 50 km
Futaleufú

CHUBUT
Villegas
Santa Cruz Norte
LAT 132 kV single circuit line
Coronel Charlone - General 127 km
SANTA CRUZ Pico Sur
LAT 132 kV single circuit line
El Calafate Río Santa Cruz 96 km
La Esperanza Coronel Charlone – Realicó
Río Gallegos
Río Turbio
Total length of LAT 132 kV 422 km

Annual Report 2018 101

 Main proposal of the
bid documents
The PPP contract has a total dura-
tion of 15 years and, as regards its
execution, it is divided in two stages:
• Construction stage: building
works. It begins with the PPP con-
tract subscription and ends with
the commercial authorization of
the work..
• Operation and maintenance
service provision stage: it begins
with the commercial authoriza-
tion of the work and ends after
15 years from the date of contract
subscription; the PPP contractor
will provide these services during
the period.
The PPP contractor will be entitled
to receive the total sum required as
consideration for the construction,
operation and maintenance of the
work.
Concept
Issuer and payer
The required total sum will be paid in
American dollars through TPI canon
and residual canon:
• TPI canon (title for investment:)
The PPP contractor is entitled to
receive 90% of the total sum re-
quired as TPI canon for the execu-
tion of the work, through the TPI
canon which shall be acknowl-
edged in the construction stage
through the emission of one or
more TPIs. For the purposes of is-
suance of the TPO corresponding
with each period of canon per TPI,
the contracting entity must have
previously measured and rec-
ognized the advance of works in
three consecutive monthly peri-
ods, subscribing the correspond-
ing acknowledgement records
of investment advance. The TPI
to be issued for such period will
equal the sum of the percentage
of progress of works registered
in the aforementioned records,
TPI
Electricity Transmission PPP Trust
multiplied by the total sum re- PROJECTION OF POWER GENERATION BY SOURCE TYPE IN 2040
quired of canon per TPI. The TPIs
COD
issued during the construction
stage will be paid in 24 semestral Possession End of contract
fees, starting 6 months after the TPI 1 TPI 2 TPI 3 TPI 4 TPI 5 TPI 6 TPI 7 TPI 8 TPI 9 TPI 10 TPI 11 TPI 12
scheduled date of commercial au-
thorization.
Month 0 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 180
• Residual canon:
The PPP contractor will be entitled 1 2 3 4 5 6 7 144
to receive 10% of the total sum
requested through the residual Payment of residual canon
canon which shall be payable in Payment TPI 1 2 24
monthly fees from the commercial
authorization of the PPP project,
during the stage of operation and Following phases 2,000 km of lines of 500 kV, and Stage I:
maintenance service provision. Río Diamante - Charlone
500 km of 132 kV, with a total in-
The projects for expansion of the
vestment estimated in 2,300 million Stages II and III:
power transport system involve the
The project will be called for bids dollars. Choele Choel – Puerto Madryn
design, construction, operation and
through a national and internation- Vivoratá – Plomer
maintenance of the power transmis- According to the Public Private
al call for bids, in multiple stages. Plomer – Ezeiza
sion lines; call for bids will be carried Partnership program, the goal is to
In this stage, bidders will submit Charlone - Plomer
out in stages. As previously stated, call for bids within the next 6 to 9
simultaneously their technical and Oscar Smith – ET Belgrano
the first stage comprehends the in- months.
economic offer, which will be subse- Atucha II – ET Belgrano
terconnection Rio Diamante (Men- This information can be found on Rodeo – La Rioja
quently evaluated.
doza) and Charlone (Buenos Aires) the website of the Secretariat of ET Comodoro Rivadavia 500 kV
and the supplementary works. Public Private Partnership (SPPP.)1
Then, two consecutive packages of
Residual canon
documents will be bid, for a figure
1. http://www.argentina.gob.ar/hacienda/
of 9 lines, which reach nearly over PPP

Frequency of issuance Quarterly Monthly

Sum to be issued
90% 10%
(% on the advance of works)
Type of guarantees Upon request
Subject to discount for penalties
No Yes
or sanctions
Currency for payment USD
Frequency of payment Six-monthly Monthly
Day 15 of the month 42 after Day 15 of the immediate month
First payment date
subscription of contract after the commercial authorization
Number of quotas of capital 24 1
Accrual of interest None, except in the case of non-payment
Applicable law Argentina
Do they have public offer? No

102 Cámara Argentina de Energías Renovables Annual Report 2018 103

 Glossary
CAMMESA: Wholesale Electricity
Market Management Company
CC: Joint purchases
CEM: Clean Energy Ministerial
CND: Declared National
Components
COP 26: UN’s Convention about
Climate Change
EB: Pumping Station
ECA: Export Credit Agency
EPC: Engineering, Procurement and
Construction
EPCista: Contractor of the turnkey
facilities
ERV: Variable Renewable Energies
ET: Transformer Station
FC: Capacity factor
FODER: Fund for the Development
of Renewable Energies
GENREN: Renewable Energy
Generation Program
GHI: Global horizontal irradiance
GSC: Global Solar Council
GU: Large User
GUDI: Large Distribution User
GUH: Large Authorized Users
GUMA: Major Large Users
GUME: Minor Large Users
GUPA: Large Particular Users
GWEC: Global Wind Energy Council
104 Cámara Argentina de Energías Renovables
HC: Hydrocarbons
IEA: International Energy Agency
IPIM: Wholesale Domestic Prices
Index
IRENA: International Renewable
Energy Agency
ITBA: Instituto Tecnológico de
Buenos Aires
LAT: High voltage line
MATER: Renewable Energy Term
Market
MEM: Wholesale Electricity Market
MEyM: former Ministry of Energy
and Mining
O&M: Operations and Maintenance
PAH: Small hydroelectric plants
PDI: Interconnection points
PE: Wind farm
PPA: Power Purchase Agreement
PPP: Public-private partnerships
PS: Solar park
PSFV: Photovoltaic solar park
Pymes: Small and medium
enterprises
REN21: Network of policies of
Renewable Energies
RENPER: National Registry of
Renewable Energy Projects
SA: Corporations
SADI: Argentine Interconnection
System
SAU: Unipersonal Corporations
SE: State-owned Company www.360energy.com.ar
SPE: Specific Purposes Company
SPI: Solar Power International
TIR: Domestic Return Rate
UNFCCC: UN’s Framework
Convention about Climate Change
URE: Rational use of energy
Units of measurement
kV: kilovolt
kW: kilowatt
MW: Megawatt
MWh: Megawatt hour
TWh: Terawatt hour
USD: US dollars
List of partners
360 Energy S.A. AMG Energía S.A.
www.amgenergia.com.ar
Development of full renewable energy projects, from fi- Commercialization of natural gas and electric power in
nancial engineering to operation. the industrial sector.
ABB S.A. AON Risk Service Argentina S.A.
www.abb.com.ar www.aon.com
Sale of equipment and service for generation and trans- Global leading professional services company that pro-
mission of power from renewable sources. vides solutions for risk, retirement and health.
ABO Wind ARX Arcillex S.A
www.abo-wind.com/es www.arcillex.com.ar
Company specialized in developing, construction and Production of expanded klinkerized clay from natural
operation of wind and solar projects. clay found in our own fields.
AES Argentina Generación S.A.  BAF Capital S.A.
www.aesargentina.com.ar www.bafcapital.net
From 1993, one of the key investments in long-term Management of assets, specialized in financial struc-
business in the national electricity sector. tures according to needs.
AESA (Astra Evangelista S.A.) B&B – Comercio Exterior
www.aesa.com.ar www.bybsa.com.ar
Argentine firm of engineering, construction, manufac- Complete foreign trade services, developing solutions
ture and service provision, belonging to YPF. for imports and exports.
Aggreko Beretta Godoy
www.aggreko.com.ar www.berettagodoy.com
Solutions for energy generation and cooling of process- Law firm with strong practice in natural resources and
es, present in Argentina for 10 years. renewable energy.
ALCAAL Renovables S.R.L. Bertotto–Boglione
www.alcaalrenovables.com www.bertotto-boglione.com
Sustainable development of renewable energies projects, Firm that supplies turnkey wind towers and biogas
competitives and with minimum environmental impact. plants, with almost 70 years in the country.
Aldar S.A. Bioeléctrica S.A.
www.aldar.com.ar www.bioelectrica.com
Reference solar photovoltaic energy company in Argen- Firm innovating to add value, transforming biomass and
tina, with over 25 years of experience. environmental liabilities into renewable energy.
Annual Report 2018 105
 Cargill S.A.C.I. Distrocuyo S.A. Enercon Argentina S.R.L. FUNCKE Maritime S.A.
www.cargill.com.ar www.distrocuyo.com www.enercon.de/es-es/ www.gruppe-heinlein.com
Agroindustrial company, specialized in producing, pro- Electric energy transport, works and services providing Leading company in design, production, installation and Logistics firm providing sea, river and land ransport,
cessing and commercializing cereals and oilseeds. company. maintenance service of wind turbines. with fiscal deposit.

C&F S.R.L. – Gestión Responsable Dimach Energy Friendly Solutions S.A. Siemens Gamesa
del Comercio Exterior www.dimach.com.ar www.energyfs.com.ar/ www.siemensgamesa.com
www.cyfsrl.com.ar Argentine firm of green friendly solutions, focused in Design, production and installation of wind turbines and
Company commited to proving consulting and energy
Foreign trade company specializing in renewable ener- solar energy for homes, fields and industry. advanced services solutions in 90 countries.
solutions through renewable sources.
gy, project load and telecommunications.
ENGIE Gas Natural Fenosa
EACE – Estudio Aduanero y www.engie.com
Centro Regional de Energía Eólica www.gasnaturalfenosa.com
Comercio Exterior S.A. World leader in natural gas, power and energy services,
www.eeolica.com.ar Leading company in gas distribution in Spain and Latin
www.eace.com.ar present in Argentina since 1992.
Intitute researching, developing and consulting matters America; provision of energy for industries.
Foreign trade firm since 1973, based in reliability, trans-
of wind power.
parency and professionalism.. Epuvisión S.A. GEA Biodiesel S.A.
CIMET S.A. Indelqui S.A. Optel S.A. www.epuvision.com.ar www.geabiodiesel.com
www.cimet.com Eastel S.A.C.I. Firm of Grupo Epuyen, focused in the production and Investment project in biodiesel, trader in biofuels and
Company producing electrical conductors for energy and www.eastel.com.ar distribution of optical fiber for renewable energy. glycerin.
telecommunications, with over 65 years of expertise. Argentine firm with international presence, integrating
the latest technological solutions. Estudio Beccar Varela Genneia  (ex Emgasud)
Clever Argentina S.A. www.ebv.com.ar www.genneia.com.ar
www.clever-global.com Ecopreneur Leading law firm from 1987, provider of complete con- Leader in supply of cutting-edge power solutions in re-
Company specialized in global managemente of suppli- www.ecopreneur.com.ar sulting to companies, including renewable energy. newable energy projects.
ers and contractors. Environmental solutions in managemente and treat-
ment of water and effluents, biogas and oil and gas. Grenergy renovables
Coordinación Ecológica Área http://grenergy.eu/es/
Metropolitana Sociedad del Estado EDVSA Producer of independent energy; design, development
www.ceamse.gov.ar www.edvsa.com and construction of renewable energy plants on a large
Company responsible for the integrated management Engineering, construction, operation and maintenance. scale.
of solid urban waste in the metropolitan area. Integrated solutions in industrial projects.
Grupo IFES
Compañía Inversora de Energía  EME S.A. - Empresa Mendocina www.grupoifes.com
www.cinergia.com.ar Research, engineering and construction company, spe-
de Energía S.A. Estudio O’Farrell
Commercializer of natural gas, transported capacity and cialized in bioenergy.
www.emesa.com.ar www.estudio-ofarrell.com.ar
services related to energy..
Administration of energy assets in Mendoza, seeking to Law firm with the longest experience in Ar-
Grupo Newsan
maximize social and economic income. gentina, with over a century of expertise in
Coral Energía www.newsan.com.ar
all legal corporation matters and leaders in
www.coralenergia.com Development of business in renewable energies, fo-
Company aimed at developing a 100% sustainable fu-
Emede Electric S.A. energy law.
cused in solar and wind projects.
ture, with over 15 years of experience. www.emede-electric.com
Provision of EATON electrical distribution products and Phone number: +54 11 4346-1000
Halliburton Argentina S.R.L.
CORADIR S.A. services for engineering and energy companies. www.halliburton.com
www.coradir.com.ar World-leading company in the petrol and gas industry
Development of electronic and computer equipment, Emprendimientos Energéticos products and services.
software, internet services and systems integration. y Desarrollos S.A. Field Fare Renewables
www.eedsa.com www.fieldfarerenewables.com HISSUMA SOLAR
CORSALMI S.A. Leading company in the development and com- Leading company in the development, construction and www.hissuma-solar.com.ar
Patagonian agricultural enterprise with wind areas un- mercialization of renewable energy projects in Latin operation of solar plants oriented to become an IPP in Leading company in thermal solar systems, developing
der development. America. Latin America. products for the manufacturing of solar panels.

106 Cámara Argentina de Energías Renovables Annual Report 2018 107

 HTI CONO SUR S.A.
www.htisa.com
Leading company in the provision of aluminum trailers
and equipment for the power industry.
Hychico S.A.
www.hychico.com.ar
Development of wind and photovoltaic parks and use of
hydrogen as a power vector.
IDERO – Ideas en Acero
www.ideasenacero.com.ar
Leading company in engineering, manufacturingand as-
sembly of metal structures for photovoltaic parks.
Inctrad Argentina S.A. (INCAICA)
www.incaica.com
Customized solutions for clientes seeking to invest in
the power market in Latin America.
Industrias Juan F. Secco S.A.
www.jfs.com.ar
Company exploring renewable energy, designin, install-
ing and operating biogas plants.
Ingener Argentina S.A.
www.ingener.com
Expert firm in engineering for energy and industry, EPC-
type contract services and experience in O&M.
INFA
www.infa.com.ar
Company focused in engineering, construction and in-
dustrial assembly, belonging to the group Fate-Aluar.
INTA
www.INTA.gov.ar
The National Institute of Agricultural Technology has a
National Bioenergy Program.
Ing. Héctor J. Resino S.R.L. (SOLINERG)
www.resino.com
Import and sale of batteries for solar and wind power,
cars, motorcycles, boats, golf carts.
MACON Solar – Máquinas
y Consumibles S.A.
www.maconnet.com
Hardware provision company for photovoltaic solar fa-
cilities, with over 35 years of experience.
McCain Argentina S.A.
www.mccain.com.ar
Isotron S.A. Canadian origin multinational company, whose main
www.isastur.com
production involves frozen pre-fried chips.
Engineering, construction and mainte-
nance of power plants, solar and wind
MC & C Asesores Impositivos
farms, as EPC contractors, executing BoP
www.mcya.com.ar
or building connection structures.
Complete consulting in legal, accounting and financial
matters, specialists in tax issues.
Phone number: +54 9 11 5031 0698/9
Marsh Argentina
www.marsh.com.ar
IVANAR S.A. Leading firm in insurances consulting and risk manage-
www.ivanar.com.ar ment, with large presence in Argentina.
Commercialization of steel products and services for
construction, agriculture and industry with more than MetroGAS S.A.
50 years of experience. www.metrogas.com.ar
Public services company, the largest distributor of natu-
KPMG  ral gas and derivatives in Argentina.
www.kpmg.com.ar
Company specialized in professional consulting services, Mitsubishi Argentina S.A.C. y R.
auditing and taxation. www.mitsubishicorp.com
International corporation with over 50 years in the pow-
Latin American Wind Energy Association er market of Argentina.
www.lawea.org
Development of the wind industry at the regional level.
Motores Czerweny S.A.
www.motoresczerweny.com.ar
Latinoamericana de Energías
Engines and pumps manufacturing company with a
Renovables S.A.
specialized line in renewable energy.
www.laderenergy.com
Development of renewable energy projects, mainly fo-
cused in Argentina, Colombia and Chile. Moto Mecánica Argentina S.A.
www.motomecanica.com
Ledesma Renovables Leading company in engineering, design and execution
www.ledesma.com.ar  of renewable energy projects.
Renewable projects company, specialized in photovolta-
ic solar energy in Argentina, controlled by Ledesma SAAI. MTU Detroit Diesel Allison
Argentina S.A.
Lipsia S.A. www.mtu-allison.com.ar
www.lipsia.com.ar Official distributor of MTU Friedrichshafen, leader in
Commercialization and production of wood pellets and power generation from gas and biogas.
installation of pellets thermal power plants.
Neoen Argentina S.A.
www.neoen.com
First exclusive independent producer of renewable en-
ergy in France and one of the first worldwide.
Neoconsult S.R.L.
www.neoconsult.com.ar
Engineering consultancy focused on the development
of renewable energy projects, specially dry biomass.
NEU Ingeniería
www.neuingenieria.com.ar
Engineering services, projects, consultancy, electrical
and environmental studies, works and services.
Nordex (Chile) SpA
www.nordex-online.com
Firm with experience in design, construction and opera-
tion of solar farms, providing over 18 gW of power.
NRG Río de la Plata S.R.L.
www.pintelosyasociados.com
Development of photovoltaic solar plants, energy stor-
age systems and biomass plants and biogas.
Nutribras S.A.
www.nutribras.com 
Especialistas en instalación de sistemas fotovoltaicos y
productos solares inteligentes.
On. Networking Business
www.on-networking.com
Specialists in energy efficiency and renewable energy,
development and import of complete projects.
Olympic
www.olympic.com.ar
Appliances and electronic products firm, adding renew-
able energies products, from wind and solar power.
Orazul Energy Southern Cone S.R.L.
www.orazul.com.ar
Leading company in electricy generation, developing,
operating and mainteining renewable power plants.
Pan American Energy
www.pan-energy.com
Company focused in the energy industry in Latin Ameri-
ca, including thermal and wind power generation.

108 Cámara Argentina de Energías Renovables Annual Report 2018 109

 Peisa SGS Argentina S.A. Tecnored VASA – Vidriería Argentina S.A.
www.peisa.com.ar www.sgs.com www.tecnoredconsultores.com.ar www.vasa.com.ar
Industrial products and conditioning solutions Argenti- World leader in inspection, verification, analysis and cer- Engineering and construction in biogas, gasification, Leader in glass solutions for generation and energy sav-
na company, with innovation and high quality. tification referring to quality and integrity. natural gas, CNG, electricity, water and effluents. ings, and manufacturer of flat glass (float).

Proyesco S.A. Sidersa Renovables S.A. TG2 S.R.L Wärtsilä Argentina

www.proyesco.com www.sidersa.com www.tg2.com.ar www.wartsila.com
Service providing company, from basic engineering to Company focused in the production of wind towers and Engineering services, execution of civil works, electrome- Finnish company, leader in the market of descentralized
commissioning, focused in turnkey works. structures for solar panels. chanical, electric and telecommunications installations. electricity generation.

Proyección Electroluz S.R.L. Siemens Power Generation TEL3 S.A. Weg Equipamientos Eléctricos S.A.
www.electroluz.com.ar www.siemens.com www.tel3sa.com.ar www.weg.net
Comprehensive electrical solutions company with 55 Provider of technology for generation, transport and From 1995, this company develops its activity in the field Global solutions in electric machines and automatiza-
years in the business, with manufacturing, engineering distribution of energy infrastructure. of the large enery projects and telecommunications. tion for industry and power systems.
and assembly.
Sigla S.A. UONIC S.A.
Quark Engineering SAS www.sigla.com.ar www.uonic.com.ar
www.quarkengineering.org Consulting firm specialized in studies and energy proj- Integrated renewable energy company, from develop-
Civil engineering, water and energy projects, with tech- ects, including renewable sources and energy efficiency. ment to electricity generation.
nical and executive management and works.
SIMM Soluciones S.A.
Rosario Bioenergy S.A. www.simmsoluciones.com
www.rosariobioenergysa.com Full response for assembly, engineering and consultan-
Production of biodiesel from agricultural raw materials cy in wind and solar energy.
and recycled vegetable oils.
Sinec S.A.
Roverano y Cía. www.sinec.com.ar
www.bateriasroverano.com.ar Company focused in providing consultancy services, engi-
First battery factory in Argentina, with model highly neering, works and inspections, and assistance in the field.
equipped facilities and comprehensive service.
Sistemas Energéticos S.A.
ROWING S.A. www.sistemasenergeticos.com.ar
www.rowing.com.ar Solutions for practical problems in the supply of electric
Company with extensive know how and experience in en- energy from renewable, hybrid and thermal sources.
gineering, construction, assembly and industrial services.
Solar Latam
SAPA Aluminium Argentina www.solarlatam.com
www.sapagroup.com/es/extrusions-argentina/ Engineering, financing, installation, operation and main-
Production and sale of extruded alluminium profile for tenance of solar power plants for several sectors.
metal structures and industrial application.
Solflix S.A.
SENVION Argentina S.A.U. www.solflix.com
www.senvion.com Expert firm in telecommunications infrastructure, con-
Pioneer in wind power in the German industry; devel- ventional, photovoltaic and wind powers.
opment, production and commercializes wind turbines.
Stantec Argentina S.A.
Servicom Group S.A. www.stantec.com
www.servicomgroup.com.ar Company that comprehends from start and initial plan-
Comprehensive services company for foreign trade, cer- ning of the project through design, construction and
tified to ISO 9001: 2015 Bureau Veritas. commissioning.

110 Cámara Argentina de Energías Renovables Annual Report 2018 111

Credits

General coordination
María Florencia Hoffmann

Edition and proofreading

Alejandra Groba

English translation
Laura Pagnini

Texts
Marcelo Álvarez Julio Menéndez
Florencia Balestro Alejandro Montaña
Pablo Caviedes MAIZAR 
Juan Córdoba Roque Pedace
Carlos Cueva Horacio Pinasco
Francisco Della Vecchia  Germán Pinasco
Sonia de Sales-Lisboa Gustavo Roldán
Germán Di Bella Agustín Siboldi
Omar Díaz Ramiro Vassallo
Viviana Gutterman Guillermina Vidal

Operative management
María Florencia Castagnani – Susana Schaeffer

Design
Estudio Massolo – Fabio Massolo / Analía Tejeiro

Printing

Av. Independencia 3918, CABA

www.imprentaecologica.com.ar

Pictures in this annual report were provided by CADER

partners o taken from photo banks.

© Cámara Argentina de Energías Renovables

2018 Annual Report – CADER: renewable energies, a
shift in the paradigm – 1st facsimile edition – Auton-
omous City of Buenos Aires – Cámara Argentina de
Energías Renovables – CADER, 2018
57 p.; 21 x 14 cm.
ISBN 978 – 987 – 25326 – 3 – 5
1. Renewable Energy 2. Bioenergy 3. Power supply
CDD 333.794
Full or partial reproduction, storage, rent,
transmission or transformation of this
book, in any way, whether electronic or
mechanic, through copies, digitalization or
other methods, with no previous and written
authorization from the editor, is not permitted.
Penalty for this infringement is established in
Acts 11723 and 25446.