Argentina will lead wind power in Latin America

Argentina will lead wind power in Latin America

2019-09-18T06:37:36+00:00September 18th, 2019|Wind Energy|

Argentina will become in the coming years a “leading wind energy market in Latin America” ??if it manages to overcome the challenges linked to the search for new sources of capital, increase its electricity transmission infrastructure, a report by the Global Wind Energy Council said today ( Gwec).

In addition, he pointed out that Argentina must continue the current renewable energy policies and resolve the investment competition of Vaca Muerta gas development.

This was stated by the entity in a report on the sector development of Argentina, in a context in which it warns “a volatility that has historically ruined its economic growth” but with the expectation that “any new administration is pro-wind.”

“The high inflation and the weak fiscal situation of the State affected the confidence of the investors, hindered the financial closure of the projects and slowed the rapid expansion of the renewable energy sector” is the analysis carried out by the largest entity in the wind industry .

As part of the difficulties, the report also stressed that Argentina needs to “increase its investments in network infrastructure, a key bottleneck that prevents further progress of wind energy as a sustainable and cost-competitive source of electricity for the country” .

Also the economic challenges included, according to the report, “the financial health of public service companies, which can cause delays in the execution of projects, since the purchase agreements and energy purchase agreements (PPA) are not can end “.

Regarding the imminence of the October elections, the entity stressed that with the success of recent wind power auction programs and support for renewable energies “across the political spectrum”, the expectation is that “the result of the elections will not will alter Argentina’s path to become a leading wind market in Latin America. “

“GWEC expects that the impact on the wind sector will be limited, since any new administration is likely to be pro-wind and renewable,” the report said.

The Council analyzed the renewed emphasis on policy discussions on the export potential and income generation of large gas reserves in the Vaca Muerta complex and its interaction with the needs demanded by the development of wind and renewable energy.

“If expectations about export prices are not met and the growth of (global) demand for gas slows down, Vaca Muerta could end up being an expensive disappointment,” he warned.

And, he pointed out that the risks that “the government ends up giving priority to gas for the production of domestic energy” could end up affecting the Argentine economy with “a more expensive option for energy demand and channeling much needed infrastructure investments in the gas instead of energy transmission. “Enviar comentariosHistorialGuardadas

 

Source : https://www.evwind.es/2019/09/10/argentina-will-lead-wind-power-in-latin-america/70765