Argentina could become green energy powerhouse

Just like decades ago Argentina appeared to look forward to a prosperous future because of its abundant grain crops and meat production, feeding a large chunk of the world, now there is a another possibility: that of providing energy for the planet.

Experts say that Argentina has great potential because of the different kinds of territories and geographical conditions that could lend themselves to develop solar energy, wind energy, geothermic energy and tidal energy.

“Argentina is potentially a great clean energy exporter, which is exactly what the world is going to want in the 21st century,” said James.

He pointed out that without much effort, Argentina is currently the fifth-largest bio-diesel producer, behind Germany, the United States, France and Brazil, and the top exporter.

Argentina has laws aimed at spurring the use of renewable energies, which set the amount of remuneration for each kilowatt-hour produced, and other kinds of fiscal benefits and tax exemptions in connection with the projects.

One disadvantage is that electricity is state-subsidized in Argentina, having a negative effect on wind or solar energy production costs, higher to begin with.

Energy Minister Daniel Cameron said earlier this year that, “climate change is an absolute reality, therefore renewable energies and energy efficiency are tools that the world will inevitably have to use because we are facing a concrete, and I am tempted to say, urgent, problem.”

According to James, Argentina's enormous potential up to now has been wasted, although he feels the situation is beginning to change with new policies.

In May 2009, the government launched the Renewable Energies Generation project that opened bids for 1,000 megawatts of clean energy to be bought by the state. In response, the market offered more than 1,400 megawatts.

Maria Cecilia Gareis, with the Civil Association of Certified Experts in Environmental Management and Diagnosis, said that it was encouraging that 22 projects were presented for the contest.

“This demonstrates that there is interest in renewable energies taking off in Argentina and there are firms that are willing to invest,” she said.

Most of the firms were Argentine. “The first wave brought a bunch of foreigners who came sniffing but made no offers. Argentine investors, who are familiar with local idiosyncrasies, are not fools and they are making major pledges because they know there is a future to this,” James said.

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