RenovAr
Launching Competitive Tenders and Expanding the PPA Market
In the first three years of its creation, RenovAr held four successful and very competitive international public tenders in Argentina. The programme also acted as a spearhead for the development of projects that later sold energy into the Corporate PPAs Market (or MATER).
Some numbers
As of September 2024, 169 renewable energy projects resulting from RenovAr auctions and MATER implementation are already in operation, and 50 are under construction, totalling US$11.3 billion in direct investment and 9.1 GW of new-build capacity.
This is all with the added benefits of having already created over 22,000 direct and indirect jobs, avoided 37.5 million tons of carbon emissions, and saved over US$7.1 billion of fossil fuels and variable system costs since 2016.
Major de-risking mechanisms
At the heart of this success is an innovative, multilayered financial de-risking mechanism that has effectively protected the country’s unstable economy. The scheme has attracted billions of dollars in long-term investment and financing in renewable generation and equipment manufacturing.
A key element of this guarantee system is the participation of multilateral financial institutions, including the World Bank and IFC.
RenovAr secured a novel risk guarantee scheme from the World Bank, designed ad hoc and implemented for US$730 million.
Impact on the Energy Matrix
Successful implementation of RenovAr by 2025 will help fulfil 15% of Argentina’s reduction commitments under the Paris Agreement and achieve the country's UN Sustainable Development Goals.
Meanwhile, the programme has already contributed to making renewables the country's cheapest unsubsidised energy source.
International Standing
As further evidence of RenovAr’s success, Argentina’s position in Ernst & Young’s Renewable Energy Country Attractiveness Index (RECAI) shot up to #9 globally and #1 for Latin America in April 2019, just two years after entering the ranking for the first time.
Also noteworthy is that, in 2018, Argentina was the third most important global market for Vestas, the world’s largest wind turbine manufacturer.
RenovAr In The Spotlight
"The novelty of the RenovAr scheme is its comprehensive approach to mitigating country risks for investors and developers. A decisive feature of Argentina ’s RenovAr support programme is a multi-level safety net of payments and solvency guarantees to leverage investors’ confidence and reduce prices."
International Renewable Energy Agency (IRENA), the Ministry of New and Renewable Energy (MNRE) & G20 India
