Argentina Renewable Energy Auctions - RenovAr Program (Round 1)

The renewable energy auction programme of Argentina (RenovAr) was set in motion with Resolution No. 136/2016, which:

1. Launches an auction process so that bidders can apply to the first round of RenovAr program
2. Approves the bidding terms and conditions of the auction, and
3. Approves the Power Purchase Agreements (PPA) for renewable electricity.  

The resolution builds upon the framework defined by Decree 531 and Law 27.191. 

The first round of RenovAr auctions was announced in July 2016. All bidders were asked to comply with several requirements, including:

1. Provide evidence of: proprietary rights over the site location; relevant environmental licenses and permits; acceptable and certified assessment of resources report.
2. Prove that they have a minimum capital of USD 250,000/MW of power tendered; and provide acceptable guarantees for maintaining the offer (USD 35,000/MW); and fulfilling the contract (USD 250,000/MW).
3. Have at least 12 months of measurement data.

The summaries of the auction results:

Technology	Capacity Bid (MW)	Capacity Contracted (MW)	Average Price (USD/MWh)	Minimum Price (USD/MWh)
Wind	3,478	708	59.4	49.1
Solar	2,834	400	59.7	59.0
Biogas	53	1.2	118	111.1
Total	6,346	1,109	-	-

 

RenovAr 1st round tender – winning projects
Technology	Winning company	Project capacity	Name of the project	Province	Average price of awarded PPA
Onshore wind	Envision	50 MW	Cerro Alto	Río Negro	USD 59.4/MWh
		75 MW	Los Meandros	Neuquén
		50 MW	Vientos del Secano	Buenos Aires
		10 MW	García del Río
	Central Térmica Loma La Lata, a subsidiary of Pampa Energía	100 MW	Corti	Buenos Aires
	Pan American Energy and 3-Gal	24 MW	Garayalde	Chubut
	Consortium Enat-SEG-Otamendi-Nuevo Cerro Dragón	24 MW	Kosten
	Eren	97 MW	Vientos Los Hércules	Santa Cruz
	Arauco SAPEM	100 MW	Arauco	La Rioja
Solar PV	JEMSE	300 MW	1st,2nd  and 3rd solar parks (each park 100 MW)	Cauchari	USD 59.7/MWh
	Fieldfare and Isolux Corsan	100 MW	4th solar park	Salta
Biogas	Martín Bacarato	1.2 MW	Ricardone	Santa Fe	USD 118/MWh

123 bids were submitted, for a total capacity of 6,346 MW: the wind capacity was nearly six-time oversubscribed (3,469 MW), while the solar capacity was 9-times oversubscribed (2,813 MW). Winning projects received contracts for period of 20 years. The selected projects must be completed in a timeframe of two years. 

Given huge participation and low bidding prices, government decided to hold a second round of auctions (called RenovAr 1.5) in mid-November 2016 for additional 400 MW of wind and 200 MW of solar PV capacity. Only companies that qualified in the first round of auction, but failed to win a contract, can participate in the RenovAr 1.5.

The second auction round (called RenovAr 2) will take place in the first quarter of 2017.

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