Argentina Opens Bidding On Green Energy Projects Totaling 1GW
May 22 2009 - 1:54PM
Dow Jones News
Argentina's state-run energy company Enarsa this week opened
bidding for multiple renewable-energy projects whose combined
output will total 1 gigawatt.
The projects, which aim to produce cheaper energy and reduce
Argentina's reliance on non-renewable sources of power, call for
the building of new wind, solar, geothermic, and biomass plants.
The government expects 500 megawatts of the new power to be
generated by wind turbines.
Government officials hope the new projects, which each offer
15-year contracts, will lead companies to invest around $2.5
billion in the sector.
The government wants to boost the percentage of power generated
with renewable energy to 8% by 2016. Green energy now accounts for
about 1% of locally generated power.
Energy Secretary Daniel Cameron said this week that the
government is committed to promoting the use of Argentine
components in the construction of power plants.
"We're taking this new step to improve the quality of our lives,
protect the environment, create jobs and increase national
production," Cameron said.
However, it's not clear how the requirement that companies use
Argentine-made components might affect bidding or the construction
of power plants.
Energy companies and even government officials have said
repeatedly that in the past such requirements have stifled plans to
build renewable energy generators. Among other things, one problem
has been that local companies lack the capacity to mass-produce
such components.
A spokesman for Enarsa was unavailable to comment.
In 2005, the government outlined a $300 million plan to produce
more than 300MW at various wind farms across the country - whose
most unpopulated areas in Patagonia and elsewhere often receive
constant, howling winds.
But most of those grandiose projects have so far gone nowhere.
Despite growing interest worldwide in renewable power, volatile oil
prices, and a growing shortfall in its domestic output of natural
gas and crude oil, Argentina has only managed to marginally expand
its wind power capacity - from 10MW a decade ago to 29MW.
According to local media reports, companies that have expressed
interest in the new projects include the U.S.-based AES Corp.
(AES), the Danish wind power giant Vestas Wind Systems (VWS.KO),
Spain's Endesa SA (ELE.MC), Argentina's Pampa Energia (PAMP), the
Techint Group (TCNT.YY), Brazil's Petroleo Brasileiro (PBR), or
Petrobras, and Germany's SoWiTec, among others.
Bids will be opened on Aug. 26.
-By Taos Turner, Dow Jones Newswires; 5411-4103-6728;
taos.turner@dowjones.com