Renewable power capacity, excluding small hydropower, in Argentina is expected to increase by just under 15GW by 2030, according to GlobalData.
The company’s ‘Argentina Power Market Outlook to 2030, Update 2019 – Market Trends, Regulations, and Competitive Landscape’ report says the Latin American country will register a compound annual growth rate (CAGR) of 17.8% during 2019-2030.
Renewable installations sector will increase by 14.7 GW in order to meet increasing demand.
The implementation of renewable energy auctions under the RenovAr Program is expected to boost the expansion of the sector, said GlobalData.
Some of the projects approved in various rounds of auctions in earlier years resulted in sudden increase in installations for solar and wind in 2018.
The momentum will continue as around 4GW of renewable capacity is under construction and will be commissioned in the near term.
Financial incentives including accelerated depreciation and tax exemptions are being offered to encourage investment in renewable power generation.
GlobalData power industry analyst Anchal Agarwal said: “Argentina has been facing severe power shortages in recent years, prompting the government to re-focus on increasing installed capacity.
“The current installed capacity is unable to satisfy demand, which is increasing at a high rate. There is substantial untapped wind and solar power potential in Argentina which presents opportunity for renewables to grow.”