Renewable energy is making inroads in Argentina. Last week, after much negotiation, the chamber of deputies approved a new law decreeing that, by 2017, the country must generate 8% of its electricity from wind, solar or small-scale hydro power, among other energy sources. The bill also calls for this percentage to increase to 20% by 2020. Developing these kinds of energy sources is one of the most efficient mitigation methods in the fight against climate change.
The target is ambitious enough, insofar as renewable energy projects will have to scale up considerably. Today barely 1% of Argentina’s energy generation mix is renewable, according to a report from Cammesa in 2014. But experts may see the target as unambitious given the country’s potential.
87% of Argentina’s electricity generation comes from burning fossil fuels, the rest from nuclear and hydroelectric energy. Wind is currently leading the way in renewable energy generation: Genneia power company owns the country’s largest windfarm in Rawson, Chubut. With 77 MW of installed capacity, the park generates power for 100,000 homes. Arauco windfarm in La Rioja is second largest, followed by Loma Blanca, also in Chubut, and other smaller installations.
Photovoltaic energy is another technology currently being developed. It works by generating electricity from panels that absorb solar radiation before transforming it into energy. The largest solar farm is in the San Juan province, followed by a farm in San Luis. Buenos Aires province boasts a solar and a wind power project, while biofuels made from used vegetable oil have also joined the mix.
“Legislating and implementing the law will be a real challenge, because it requires the creation of a market for renewable energy from practically nothing,” said Nicolás Brown, an engineer specialising in renewable technology. “The renewables industry and large energy consumers in general will also find it difficult.”
Another key aspect of the law is the legal requirement for heavy power users – those consuming 300 kW or more – to comply on an individual basis with the renewable energy targets enshrined by law. It forces them to meet some of their energy needs with electricity generated from renewable sources.
One point that the law does not settle is how individuals can supply energy to the grid, a system that exists in other countries. This allows consumers not only to generate their own energy, but also to add electricity to the grid in exchange for a payment.
This type of incentive is most common for solar generation. According to the National Institute of Industrial Technology, there are 74 authorised providers of solar energy equipment and services in the country.
Solar energy can be harnessed through two technologies: thermal and photovoltaic solar. Generally speaking, the first is much more accessible and profitable, since it heats water directly and so bypasses the hot water tank, which then does not need to operate. Savings on natural gas are practically immediate. Photovoltaic solar is a little more costly because it requires an inverter, while some kits use batteries to store and regulate the flow of energy generated.
“For a household photovoltaic installation to have an impact on electricity bills, you are looking at some 20,000 pesos (£1,400). In contrast, thermal solar requires 4,000 pesos (£280). A couple can save up to 80% off their gas bills,” said Rodrigo Herrera Vegas, from Sustentator, a company marketing these kits.
- Translated by Simon Pickstone/VoxEurop
- This article was corrected on 16 November 2015 to change a headline that said ‘Argentina to generate 8% of energy from renewable sources by 2017’. We should have said 8% of electricity.