The Argentine energy system is undergoing a transition marked by the expansion of renewable energy, the development of gas from Vaca Muerta, and the need for new storage and transmission solutions. This process is redefining the functioning of the electricity market and creating a scenario of greater competition among technologies.
During the Future Energy Summit Argentina, Esteban Kiper , energy consultant for the Latin American and Caribbean Energy Organization (OLACDE), stated that the country is undergoing a structural change regarding its resource availability.
" We went from an energy system that experienced periods of severe restrictions and shortages to a country with abundant energy ," Kiper stated, analyzing the recent evolution of the sector.
Relive the second day of FES Argentina: https://www.youtube.com/watch?v=CvOl38xzqk8 https://www.youtube.com/watch?v=CvOl38xzqk8
The new scenario combines world-class solar and wind resources with the growth of natural gas , opening the door to a more competitive market in the coming years.
At the same time, the Government is moving forward with measures to reorganize the wholesale electricity market and encourage new investments, in a process of normalizing the system that is reflected in recent regulations published on the website of the Wholesale Electricity Market Management Company (CAMMESA).
The new balance between renewables, gas and storageArgentina still lags behind other markets in the region in renewable energy penetration, although the sector's expansion in the last decade has been significant.
"Chile is leading the energy transition with more than 40% non-conventional renewable generation, Brazil with 25% (or 33% if biomass is added), and Argentina is around 19%," Kiper noted when comparing the regional positioning.
In Latin America, the expansion of clean energy was linked to both environmental objectives and economic and energy security needs.
In the case of Argentina, renewable growth coincided with a period of high dependence on imported fuels.
During those years, the system consumed large volumes of liquid fuels for electricity generation.
The addition of wind and solar farms allowed for a gradual reduction of that dependence.
" Renewables began to displace polluting, expensive, and imported fuels, generating fiscal and external relief for the Argentine economy ," the consultant explained.
Currently, renewable generation continues to expand its participation within the electricity system.
According to data compiled from official CAMMESA information, renewable energies and large hydroelectric plants already cover more than 40% of the national electricity demand , reflecting the growing diversification of Argentina's energy matrix.
Energy storage is also beginning to play a more relevant role within the region's electrical systems, although with different functions depending on the country.
In Chile, for example, batteries expanded rapidly to manage surplus solar generation in the north of the country.
In Argentina, however, these technologies are mainly linked to the management of peak demand and congestion at nodes of the electrical system .
"Batteries are taking on a different role that has to do with solving transmission problems at demand nodes and meeting generation peaks ," Kiper said.
That role is also reflected in recent policies in the sector.
The Government launched the AlmaSADI tender, which includes 700 MW of BESS storage systems , with the aim of reinforcing critical nodes of the electrical system and improving operational reliability.
The possibility of increasing the allocated power by up to 10% is even being evaluated, depending on the offers received.
At the same time, the development of the electrical system requires new investments in transport infrastructure.
In that regard, the Executive confirmed that it will move forward with the technical specifications for the AMBA I project, one of the main transmission expansions planned for the Argentine system, which could enable up to 1000 MW of additional capacity and facilitate the incorporation of new generation projects.
Looking ahead, the specialist considered that the abundance of energy resources could translate into a more dynamic and competitive market, provided that the system manages to efficiently integrate renewables, storage and natural gas.