Argentina will contribute 47% of Latin America’s renewable capacity by 2030

60% of Latin America’s electricity is generated from renewable energieswhich positions it as one of the cleanest electrical networks in the world, as indicated Broadmindedthe communications agency’s research team Sherlock Communications. In this framework, it was learned that in Argentina an investment in renewable energies of US$4.5 billion is expected until 2026.

Argentina in the renewable energy panorama

According to the report sent to Energy Report, which brings together data from the International Energy Agency (IEA), the renewable energy sector in Argentina has emerged as a focus for investment, driven by the abundance of natural resources and the growing demand for sustainable energy.

The investigation revealed that it is expected that Argentina will contribute 47% of Latin America’s renewable capacity by 2030positioning itself as the third largest taxpayer after Brazil and Chile.

And he also stressed that despite facing economic and regulatory challenges, Argentina is demonstrating a strong commitment to the transition towards a cleaner and more sustainable energy future. “The new administration, led by President Javier Milei, has implemented a series of economic reforms aimed at creating a more attractive investment climate for the energy sector,” the work emphasized.

And he added that the Law Baseswhich grants broad powers to the Executive, and the Incentive Regime for Large Investments (RIGI) They are clear examples of this commitment. “With ongoing reforms and increased investment support, Argentina is well positioned to harness its vast renewable energy potential and become a regional leader in the fight against climate change”they maintained from the specialized consulting firm.

US$4.5 billion in “new renewable capacity” in the country

Bernardo Andrewsvice president of the Argentine Wind Chamber and CEO of Genneia, recalled in the institution’s end-of-year toast that “between 2016 and 2025 we will have saved the country foreign exchange for around US$10,000 million in substitution of fossil fuel imports “and announced that Between 2024 and 2026, a total investment of US$4.5 billion is estimated in “new renewable capacity” in the country.

During the meeting at the Círculo Italiano Association, Andrews pointed out that, starting this year, the CEA expanded its commitment to expand its horizon towards new technologies and energy solutions such as solar energy, hydrogen, storage and innovation. This approach – they explained before Energy Report– expanded seeks to promote a collaborative dialogue between developers, operators, manufacturers and other key actors, strengthening the role of renewable energies in the Argentine energy system.

At the moment, CEA partners are responsible for 81% of the country’s wind generationwhich reflects the impact of the investments made and the joint effort of the sector. “This advance has not only favored job creation and technological progress, but has also consolidated renewable energy as a strategic pillar for the decarbonization of the Argentine economy and compliance with international climate commitments. Without renewable energy, the sectors The most important exporters will not be able to enter the most developed markets, which impose increasingly demanding standards in environmental terms,” ​​they stressed.

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Argentina’s development in renewable energies

According to official data, the participation of these sources in the national energy matrix exceeds 15%, with wind energy as the largest contributor. “This growth has been possible thanks to a favorable regulatory framework, significant investments and exceptional natural potential for clean generation projects”indicated the CEA.

However, they also admitted that the sector faces key challenges, including the need to expand the electric transportation network to integrate the new installed capacity. The famous “bottleneck”. This point, highlighted by the CEA, will be essential to unlock the potential of renewables and guarantee the sustainable energy supply that the country needs.

In this framework, the chamber reaffirmed its commitment to continue working intensely on these challenges, promoting the energy transition and strengthening Argentina’s position as a regional leader in renewable energies.

Latin America, global leader in renewable energies

In this framework and although most countries still depend predominantly on a hydroelectric matrix, Sherlock researchers assured that the region has demonstrated significant progress in the diversification of its clean energy sources, especially in energy projects. wind and solar energy.

“Latin America, especially Brazil and Chile, could become a major exporter of this vital energy source. But the region’s success will depend on navigating regulatory complexities, ensuring adequate financing and balancing the transition from fossil fuel revenues with new opportunities for green energy exports”said Patrick O’NeillManaging Partner of Sherlock Communications.

What are the challenges?

Although Latin America moves towards leadership in the global energy transition, the experts interviewed in the study point to key structural challenges that must be overcome to consolidate this position. As this media learned, among other respondents, they responded Cristiano Lopes Saitofrom Aggreko Brazil; Estefanía González Del Fierro, of Greenpeace Chile, and the former Minister of the Environment of Peru, Fabiola Muñoz.

As Andrews said at the CEA cocktail party, one of the main challenges involves financing strategies for essential infrastructure projects for energy transmission and storage.

Furthermore, macroeconomic and political stability is crucial for the advancement of green energy in countries like Argentina and Peru, where these factors are essential to attract and maintain investments in the sector.

At the CEA meeting, the main managers demanded more long-term energy supply contracts, which provides long-term certainty.

“Although Latin America is a global leader in renewable energy, there are numerous challenges. Overcoming these obstacles is crucial for the region to maintain and expand its leadership role in the transition to a more sustainable and resilient energy model,” O’Neill concluded.