Argentina to generate 8% of energy from renewable sources by 2017

A new law supporting renewable energy was passed in Argentina last week, approved by the chamber of deputies to utilize some of the country’s potential as a producer of wind, solar and hydro power. The bill mandates that 8% of electricity must come from alternative energy sources by 2017; it also calls for this percentage to increase to 20% by 2020. Nicolás Brown, an engineer specializing in renewable technology, said:

“Legislating and implementing the law will be a real challenge, because it requires the creation of a market for renewable energy from practically nothing, … ‘The renewables industry and large energy consumers in general will also find it difficult.”

Despite a wealth of sources to choose from, Argentina’s use of renewable energy mix is less than 1%. Argentina relies instead on fossil fuels or 87% of electricity generation and the rest from nuclear and hydroelectric energy, according to a report from Cammesa in 2014.

Wind power is currently leading the way – the Genneia park at Chubut has 77 MW of installed capacity that generates power for 100,000 homes and Arauco wind-farm in La Rioja is second largest, followed by Loma Blanca, also in Chubut, and other smaller installations. Photovoltaic energy is growing in the San Juan and San Luis provinces, while in Buenos Aires province solar and wind power projects are taking root and biofuels made from vegetable oil have joined the mix. The requirement for heavy power users – those consuming 300 KW or more – to comply on an individual basis with the renewable energy targets is a key aspect of the law, forcing them to meet some of their needs through renewable sources. The law does not provide however, specify actions that individuals can take to supply energy to the grid in exchange for a payment – a system known as net metering. According to the National Institute of Industrial Technology, there are 74 authorised providers of solar energy equipment and services in the country and can return almost immediate savings on natural gas.

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