The silver country really has great potential in several areas. There is no doubt that the first association for this country is football. Argentina, the country of tango and football, bases its entire passion, love, and life philosophy on this sport. By winning the gold medal at the World Cup, Argentina showed that it is the homeland of the greatest football legends and the land of many football titles. This South American country, once called the land of silver, after the silver mines with which it abounds, has other potentials besides football, which remains the number one priority in this country.
Argentina has excellent natural conditions for the use of renewable energy sources, due to its favorable location and natural potential. The country has a huge potential for harnessing wind, especially in the southern part of Patagonia, year-round sun, hydro potential, and biomass. However, despite this, the country has not yet built facilities that will significantly increase the share of energy from renewable energy sources.
For Argentina, this is so important because it will mean a greater influx of fresh capital in new projects, development of the economy, and transfer of new knowledge, but also a stable energy system. This is particularly important as Argentina faces instability in its electricity supply.
In the past few years, efforts have been made to create a better climate to initiate more projects in the energy transition. Argentina has also set targets until 2025 when it is predicted that 20 percent of the energy will come from renewable energy.
The Argentine government, in order to intensify the investment process, created the RenovAr program, the purpose of which is to attract foreign investments to meet the targets by 2025. The plan is to stick around $35 billion, of which at least half will be invested in renewables. The International Financial Corporation has provided support for the creation of a sustainable market that will attract fresh capital.
The World Bank sent a positive signal to investors, providing nearly $500 million to reduce financial risks. The effects of this strategy were evident, and this was confirmed by the offers that were several times larger than planned. In the first half of the year, the Argentine company Genneia SA announced investments worth 200 million euros in new projects for renewable energy sources. It is about the solar park “Tokota III”, with an installed capacity of 60 megawatts, as well as the wind park with an installed capacity of 103.5 megawatts.
In the next period, investments in renewable energy sources in Argentina were expected to grow.
According to forecasts, the renewable energy market will grow by 13% by 2027. The models for attracting new investments and creating a positive business climate such as a private-public partnership in the renewable energy segment will contribute to the increased realization of projects in this sector.
Argentina will face a challenge in realizing its plans, but the support from international institutions as well as the natural potential are a positive signal that will be recognized by investors.