France M. Tenaille
Partner
Leader, Latin America
Article
5
In an effort to address its energy needs, Argentina has announced that it is looking to develop US$5 billion in renewable energy by 2018.
The key points from the April announcement of Argentina's ambitious renewable energy program include:
Such a program would normally be of tremendous interest to active participants in the renewable sector, including developers, financiers and contractors. Unfortunately, Argentina has been on the outside of international development and financing for the last 15 years.
Frozen out of international markets since 2001, Argentina is coming in from the cold. With the election of President Mauricio Macri at the end of 2015, it is attempting to create a more market-friendly environment for international development and financing.
Argentina's reintegration with the international financial community is taking shape through its commitment to numerous financing and renewable energy activities. These activities should help to change global attitudes towards Argentina as a viable market for investment - particularly in relation to renewable energy.
Important achievements with respect to government financing include the following:
As part of this ambitious new program:
In respect of the tendering process, it is worth noting that:
International renewable energy investors and participants who are willing to take the time to carefully examine Argentina's new program will find that it offers a number of attractive opportunities.
The country has carved out a well-defined program for renewable energy and has gone a long way toward restoring the confidence of the international financial community. The combination of tax and financial incentives create a substantive basis from which projects can be developed and financed.
The Argentine government's request for proposals is expected to be issued in the second quarter of 2016, and we will provide a further update to you at that time. In the meantime, please contact us with any questions you may have about Argentina's renewable energy program and related opportunities.
Gowling WLG is an international firm with a top-tier energy practice, a keen focus on renewables and a particular strength in Latin America, where we hold long-standing relationships across the region. Having worked with investors on many Latin American energy and infrastructure projects, we encourage you to reach out to us if you are interested in exploring this exciting new program.
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