, Program to Promote the Use of Renewable Energy in Electricity Generation (Dec. 531; Law 27.191)
Country:Argentina
Year:2016 (July)
Policy status:In Force
Jurisdiction:National
Date Effective:2016 (July)
Policy Type:Economic Instruments>Market-based instruments
Policy Target:Wind>Onshore, Solar>Solar photovoltaic>Utility, Bioenergy>Biomass for power
Policy Sector:Electricity
Size of Plant Targeted:Small and Large
URL:http://servicios.infoleg.gob.ar/infolegInternet/anexos/260000-264999/263786/norma.htm
URL:https://www.minem.gob.ar/servicios/archivos/6548/AS_14695676441.pdf
URL:http://www.melectrico.com.ar/web/index.php?option=com_content&view=article&id=1522%3Aresolucion-no-2052016-se-determina-la-calificacion-de-las-ofertas-presentadas-en-el-marco-de-la-convocatoria-abierta-nacional-para-la-contratacion-en-el-mem-de-energia-electrica-de-fuentes-renovables-de-generacion-el-programa-renovar-ronda-1&catid=1%3Alatest-news&Itemid=1
Description:

The renewable energy auction programme of Argentina (RenovAr) was set in motion with Resolution No. 136/2016, which:

  1. Launches an auction process so that bidders can apply to the first round of RenovAr program
  2. Approves the bidding terms and conditions of the auction, and
  3. Approves the Power Purchase Agreements (PPA) for renewable electricity.  

The resolution builds upon the framework defined by Decree 531 and Law 27.191. 

The first round of RenovAr auctions was announced in July 2016. All bidders were asked to comply with several requirements, including:

  1. Provide evidence of: proprietary rights over the site location; relevant environmental licenses and permits; acceptable and certified assessment of resources report.
  2. Prove that they have a minimum capital of USD 250,000/MW of power tendered; and provide acceptable guarantees for maintaining the offer (USD 35,000/MW); and fulfilling the contract (USD 250,000/MW).
  3. Have at least 12 months of measurement data.

The summaries of the auction results:

Technology

Capacity Bid (MW)

Capacity Contracted (MW)

Average Price (USD/MWh)

Minimum Price (USD/MWh)

Wind

3,478

708

59.4

49.1

Solar

2,834

400

59.7

59.0

Biogas

53

1.2

118 

111.1

Total

6,346

1,109

-

-

 

RenovAr 1st round tender – winning projects

Technology

Winning company

Project capacity

Name of the project

Province

Average price of awarded PPA

Onshore wind

Envision

50 MW

Cerro Alto

Río Negro

USD 59.4/MWh

75 MW

Los Meandros

Neuquén

50 MW

Vientos del Secano

Buenos Aires

10 MW

García del Río

Central Térmica Loma La Lata, a subsidiary of Pampa Energía

100 MW

Corti

Buenos Aires

Pan American Energy and 3-Gal

24 MW

Garayalde

Chubut

Consortium Enat-SEG-Otamendi-Nuevo Cerro Dragón

24 MW

Kosten

 

Eren

97 MW

Vientos Los Hércules

Santa Cruz

Arauco SAPEM

100 MW

Arauco

La Rioja

Solar PV

JEMSE

300 MW

1st,2nd  and 3rd solar parks (each park 100 MW)

Cauchari

USD 59.7/MWh

Fieldfare and Isolux Corsan

100 MW

4th solar park

Salta

Biogas

Martín Bacarato

1.2 MW

Ricardone

Santa Fe

USD 118/MWh

123 bids were submitted, for a total capacity of 6,346 MW: the wind capacity was nearly six-time oversubscribed (3,469 MW), while the solar capacity was 9-times oversubscribed (2,813 MW). Winning projects received contracts for period of 20 years. The selected projects must be completed in a timeframe of two years. 

Given huge participation and low bidding prices, government decided to hold a second round of auctions (called RenovAr 1.5) in mid-November 2016 for additional 400 MW of wind and 200 MW of solar PV capacity. Only companies that qualified in the first round of auction, but failed to win a contract, can participate in the RenovAr 1.5.

The second auction round (called RenovAr 2) will take place in the first quarter of 2017.

Last modified: Mon, 28 Aug 2017 10:20:40 CEST