The price of renewable energy in Argentina is shaped by two parallel realities: on the one hand, contracts resulting from public tenders , such as RenovAr or schemes with associated infrastructure; on the other, agreements between private entities in the Term Market (MATER) , where direct competition among sector players prevails. In traditional public tender mechanisms , awarded prices have historically fluctuated, averaging between USD 60 and 110.5/MWh, depending on the timing of the tender, the type of technology, location, and financing terms. In contrast, in the Term Market , where bilateral contracts between private entities operate without subsidies or regulated prices, the most recent prices are around USD 60-70/MWh , marking a gap of up to 50% compared to the highest prices in public auctions . "Prices are closer to around USD 60/MWh and the market is quite competitive, but we don't believe they will fall below those levels," said a source close to Energía Estratégica who has participated in this mechanism. "MATER solar and wind is cheaper than joint purchases through public tenders."
But the final figure will depend on the contract, offtaker, terms, load factor, project location, and other variables,” stated a representative from another company. The key difference is that current private contracts tend to have shorter terms, ranging from 3 to 10 years of supply, compared to the 20-year average of public tenders organized by the government in the past, according to information obtained by this news outlet. What is the outlook for each model? Public tenders include initiatives such as various rounds of the RenovAr and RenMDI programs , among others, which awarded 5,929 MW of power through 283 PPAs between 2016 and 2023. 
It should be clarified that CAMMESA only mentions 123 active contracts at an average MEM cost of USD 73.5/MWh, which reflects the final cost of energy under the contracts, including incentive and update factors, as well as market cost recognition. Regarding the Renewable Energy Term Market , the allocation mechanism is based on the traditional dispatch priority system for supplying large users, in addition to the mechanisms implemented since 2023 by Resolution SE 360 , which enables developments conditioned on transmission infrastructure or increased demand. According to the latest report published by CAMMESA , 136 projects with dispatch priority were awarded, totaling 6,019.7 MW .
Of that total, 96 correspond to the MATER Pleno category, with a combined capacity of 3726.5 MW , while the remaining 40 fall under the Reference A category, with 2293.2 MW . However, only 85 of these developments are in effective operation , contributing 3646.5 MW to the system.
This reflects the persistent barriers to converting committed capacity into dispatched energy , primarily due to infrastructure limitations . In addition to this volume, another 3,015 MW have been awarded under schemes that require associated works or justification based on increased demand , and these are still at various stages of development.
This gradual expansion has been the way to sustain activity while awaiting decisions on private concession tenders for high-voltage networks . New rules, new market. Based on the new guidelines from the Energy Secretariat, distributors must cover at least 75% of their seasonal demand through bilateral contracts , which shifts the purchasing responsibility to each market participant.
This new requirement gives the MAT a central operational role, transforming it into the primary tool for structuring tailored agreements. While this was seen as a positive step, the government also reinstated thermal, hydroelectric, and nuclear power plants to participate in forward contracts , provided they have an operational date after January 1, 2025. This expands the available supply and adds pressure to the renewable energy sector , which will have to compete on price and efficiency . The market is changing.
Now that the MAT has opened, we will have to see how the contracts to supply large users will continue.
The impacts of the recent regulations are still very new, so we'll have to wait a while to see how the sector develops,” industry sources noted. Therefore, future market dynamism will depend on the negotiating power of the players, improvements in the electrical infrastructure , and the political framework that ultimately consolidates this transition.