GREENMAP is inspired by Argentina's successful RenovAr Program, which was designed and implemented by GREENMAP ́s core team starting in early 2016. Under RenovAr and other complementary regulation introduced, more than 200 projects totaling 5 GW of new-build capacity and over $7.5 bn investment will get installed in the country, while creating more than 11,000 new jobs and reducing power sector emissions by 220 million tons of CO2e by 2040.
At the heart of this success is an innovative, multilayered financial de-risking mechanism which has proved to be an effective protection against the country’s unstable economy, and it has attracted billions of dollars in long term investment and financing in renewable generation and equipment manufacturing in the country. A key element of this guarantee system is the participation of multilateral financial institutions, including the World Bank and IFC.
The result was RenovAr securing a novel risk guarantee scheme from the World Bank, designed ad hoc and implemented for $730 million. For more information on RenovAr’s basic structure see this IFC article .
In three years since its creation, RenovAr has held four successful and very competitive international public tenders which add up to a new scheme for corporate renewable PPAs (or power purchase agreements). In total, 6.5 GW have been awarded. This capacity, when fully built, will generate 18% of the country’s electricity, at about half the cost of previous government-led initiatives. It is estimated that, on average, two projects come online every week for the next year. Additionally, nine manufacturing plants have been set up in the country in the last 18 months, including two for wind turbine generators (Vestas and Nordex Acciona), five for wind towers, and two for solar trackers.
RenovAr successful implementation by 2025 will contribute to fulfill 20% of Argentina’s reduction commitments to the Paris Agreement and it will also help achieve the country´s UN Sustainable Development Goals. At the same time, the program has already contributed to making renewables the cheapest unsubsidized source of energy in the country.
As further evidence of RenovAr’s success, Argentina's position in the Renewable Energy Country Attractiveness Index (RECAI), published regularly by Ernst & Young, shot up to #9 at a global scale and #1 for Latin America in April 2019, just two years after entering the ranking for the first time. It is also noteworthy to mention that last year, Argentina has represented the 3rd most important global market for Vestas, the largest wind turbine manufacturer in the world.