Wind Energy Country Analysis Argentina

Market Potential for Wind Energy

Wind Energy Potential

The wind energy sector represents the most promising alternative for renewable energy production in the country. The central government has already initiated the first steps to evaluate, analyze and use the large wind potential in the country. According to the last report32 elaborated by the Cara Argentina de Energias Renovables on the status of the wind industry in Argentina, 70 % of Argentina’s territory is suitable for wind energy utilization with an annual average wind speed of 6 m/s (measured at 50 meter height). Best sites are located in the southern part of the country, particularly in the middle and southern Patagonia where average wind speeds reach values of 9 m/s and 12 m/s respectively (http://argentinaeolica. org.ar/portal/images/stories/Eolica%20en%20Argentina. pdf ). One of the main problems detected for the development of wind farms is the fact that generation points are far away from densely populated areas and industrial centres, and thus grid problems arise (grid connections, grid capacity, high costs for transmission lines, large energy losses etc.). Wind maps are currently also available for two provinces in the southern part of the country (Chubut and La Pampa). The compilation of a comprehensive wind atlas for the entire country constitutes an essential component of the national wind energy plan. Aiming at improving the planning of wind power projects, the Regional Centre for Wind Energy (CREE) in Chubut province was called upon in 2005 to compile the atlas which was finished in 2006. The atlas can be accessed via their homepage (eee.eeolica.com.ar). Argentina’s government estimates that 300 MW of wind energy capacity can be implemented by 2012.

Framework Conditions for Wind Energy

The precarious economic situation in 2001 – 2002 seriously compromised the development of the wind energy industry in the country and paralysed a lot of studies and projects. To reactivate the sector, the government has established an integral plan to develop the wind industry (National Wind Energy Strategic Plan, PENEE) at national level aiming not only at an increase of installed capacity but also to reactivate the wind industry within the nation (being an economic niche almost unexplored up to that moment by national investment). The PENEE contains the official development programme of wind parks and shall lead to the construction of at least 300 MW of wind energy projects. Initial actions of this development involve the creation of the wind atlas and the project Vientos de la Patagonia 1 and 2. Both wind farms are financed by the government with additional funding from the provinces where they are located. The wind farm Vientos de la Patagonia 1 is 80 % property of ENARSA and 20 % of the Chubut province and is structured in two phases. Phase 1, already in construction and foreseen to be finished by 2009, aims at the installation and certification of two prototype turbines from local manufacturers, one from the company IMPSA Wind and the other from NRG Patagonia. Phase 2 considers the installation of a 60 MW wind farm in Chubut using the certified turbines in Phase 1. Wind farm Vientos de Patagonia 233 with a capacity of 20 MW is located in the province of Santa Cruz. Studies regarding prospection and analysis of the wind resources are currently being carried out.

Wind energy legislation

National Law No. 26 190: as stated before, this law grants economical support to energy generated through renewable sources. In the case of wind energy, it specifies some small subsidies (0.26 €cent/kWh for wind) and tax benefits (such as the accelerated amortization or exemption of VAT payment) for the wind projects. Provincial Law of Chubut (Ley Provincial no 4 389): this regulation specifies additional subsidies and tax benefits and also establishes the percentage34 of wind turbine components that must be manufactured or assembled within the province. The subsidies amount to 0.089 €cent/kWh, on top of the national subsidy. Provincial Law of Buenos Aires (Ley Provincial no 12 603) specifies additional subsidies for wind energy. The subsidies amount to 0.089 €cent / kWh, on top of national subsidy. Provincial Law of Santa Cruz (Ley Provincial no 2 796): as stated in the previous chapter this regulation provides for tax exemptions (50 – 100 % depending on local content) and small subsidies (0.18 – 0.54 €cent, also depending on local content) for renewable energy projects.