Sebastian Kind Dispelled Rumors on Renewables: “The Contracts Won’t Be Changed Over to Pesos”

13-09-2018

At Argentina Wind Power 2018, which took place yesterday, the Subsecretary of Renewable Energy, Sebastian Kind, announced the beginning of a new tender called RenovAr MiniRen Ronda 3 (Round 3).

Before giving details on the program, he wanted to calm the markets due to rumors that have been circulating in the media that claim the complicated financial situation has given warning to the chance of changing renewable energy contracts over into pesos.

“I have not stopped receiving rumors and whispers about important issues like the conversion of contracts into pesos (…) of course that is not what will happen. They are comments that are intended to cause harm to many people,” he said.

He continued by saying that “The national government is in no way thinking about this. The RenovAr Program, the renewable-energy-based futures market are sectors that are really functioning in this country.”

Kind also assured that he had not received “instruction in that sense by any ministry, the President or from anywhere within the subsecretary. In no way are we thinking in that manner.”

Taking advantage of his exposition in the convention titled Argentina Wind Power 2018, an event organized by the Global Council on Wind Energy (GWEC), kind also referred to the state of projects in the two markets for renewables that are in place today with more than 6000 MW of power. That quantity is considered highly positive considering that over half of that is represented by renewables that are already under construction.

“Between the standard market and futures market there are 78 projects under construction, which represents at least 3000 MW and an investment of around 4.4 billion USD,” said the national subsecretary of renewables.

With respect to the current situation, the official said that in general terms, considering the current situation, that those numbers revitalize the sector like no other and are food for those interested in participating in the Argentine market.

Finally, he spoke in detail about what the next renewable energy auction will be like, and specified why it is now called MiniRen.

According to the official, 400 MW will be tendered off in the following manner: 350 MW for solar and wind, with limits for each region; 50 MW for the rest of the renewable sources; 10 MW for small hydro projects; 25 MW for bioenergy; 10 MW for biogas; and 5 MW for biogas from waste. The MW limit depends on the region.

The main objectives are as follows:

With this auction the idea is to find capital from non-traditional figures to develop renewable projects and utilize available capacities in powerlines, stimulating national growth.

From there, economic advantages have been identified, as well as electrical techniques, such as saving on loss that occurs during transportation and distribution, shift in forced generation with alternative combustibles (non-gas) and improving the general quality of powerlines.

“Argentina continues to have many problems with powerlines, to which we call “forced generation” and we want it to be rapidly replaced with some type of renewable source,” he clearly stated.

He defended the idea that the decision to be restrictive with large-scale renewable projects was taken consciously, defending by saying that the position will be temporary and will give way to the development of other projects, fostering a value chain in national industry; it will

diversify things on a federal level as well as in terms of technology, making new people and organizations compete and giving way, also, to the preparation of new grid infrastructure for large-scale energy projects.

“We want to expand the delivery system. However, we know that while that isn’t financially possible, we should be careful to not let things collapse, to not generate situations that are inconvenient and so that projects that defend demand are who end up paying for things ultimately—that they don’t take on tariffs that represent the risk for not being able to have certainty on their side. Things can always be administered, and consideration can always be taken with respect to that. Our responsibility is to move things within our understanding: logically,” he concluded.

Autor
Nanda Singh
Fuente
Energía Estratégica