Of the 59 projects coming from distinct sources of renewable energies in the RenovAr program, 19 are being built as of now.
Of the plants being built, 5 are biomass-based, 3 are small hydro projects, 6 wind farms, and 5 solar parks—all totaling to 850 MW, and an investment total of around 2 billion USD. Most of these projects will start to operate in 2018.
However, rumors are beginning to circulate that some of the 59 awarded projects will remain forever bound to paper, with construction never being realized.
Claudio Guidi is a consultant for Strategic Energy, an expert in energy market regulations and regulatory framework design, and partner of the consulting company BA Energy Solutions, weighs in with his opinion: “We have worked in other countries like Chile and Peru, and there are always projects the don’t make it out of the starting blocks—that can’t close things financially. These things happen.”
For the partner at BA Energy Solutions, it could be easier for him to gather what is needed during the financing process in Round 2.0 of the government tendering program. “As projects continue to gain financing for projects awarded in Round 1.0 and 1.5, that will be a positive sign for future projects that are to come,” he continued.
He does provide a warning: “I imagine that it will be easier to access credit, even though I don’t see that the overall financial situation is completely solved.”
BICE Bank (Argentine Investment and Foreign-Trade Bank) will award loans of 200 million USD for credits up to 200 million ARS per project awarded by RenovAr. The credit can also be awarded for the equivalent amount of USD. Either way the loan will have a time span of 15 years, with a grace period of two years, and a financing of up to 70% of the operation.
When asked about what he expects from the tenders presented in Round 2.0 that will take place October 19th, Guidi expressed that “From what I see, there are going to be a good number of bids that will present much more competitive prices than in the previous round.”