Argentina is expected to receive international debt funding for implementation of solar power projects.
According to recent media reports, the Inter-American Investment Corporation (IIC), part of the Inter-American Development Bank, will provide funding for sola power projects with total capacity of 100 MW. Reports state that the IIC is willing to provide $27 million to finance solar power projects and projects based on municipal solid waste.
The solar power projects will be allocated to prospective developers through competitive bidding process.
Argentina is planning to hold its first-ever renewable energy auction later this year. The auction is expected to include projects based on solar, wind, biomass and small hydro power technologies. Argentine Minister of Mines and Energy Juan José Aranguren had recently stated that projects are likely to have installed capacity between 10 MW and 40 MW with wind energy projects likely to dominate the auction.
Final allocation of these projects are likely to take place by September this year.
The government has set a target to increase the share of renewable energy to 20% in the energy mix by 2025. Another target called for 8% renewable energy share in electricity consumption by 2017. As a result, several renewable energy auctions are expected to take place in the country over the next few years.
The September auction is expected to allocate 1 GW capacity while the government is expected to auction a total of 10 GW capacity to meet the 2025 target.
As per the latest renewable energy country attractiveness index issued by Ernst & Young, Argentina is ranked 18 among 40 countries. The country was a new entrant into the index as the government has announced several financial incentives for the renewable energy sector.