The prevailing natural gas-fired thermal generation is at risk due to the uncertainty about future gas supply.Faced with rising electricity demand (over 6% annually) and declining reserve margins, the government of Argentina is in the process of commissioning large projects, both in the generation and transmission sectors.An important number of these projects are being financed by the government through trust funds, while independent private initiative is still limited as it has not fully recovered yet from the effects of the 2002 Argentine economic crisis.Thermal plants fueled by natural gas (CCGT) are the leading source of electricity generation in Argentina.[6] This situation is further aggravated by the uncertainty surrounding the gas deals with Bolivia and the plans to build new regional pipeline connections.Argentine law guarantees access to the grid in order to create a competitive environment and to allow generators to serve customers anywhere in the country.The share in public hands corresponds to nuclear generation and to the two bi-national hydropower plants: Yacyretá (Argentina-Paraguay) and Salto Grande (Argentina-Uruguay).[11] The 2007 Law complemented the previous one, declaring of national interest the generation of electricity from any renewable source intended to deliver a public service.The sector experienced a serious crisis in the summers of 1988/1989, primarily due to the lack of maintenance of the country's thermal power plants (50% were unavailable).[30] Shortly after the crisis, the government of Carlos Menem introduced a new legal framework for the electricity sector through Law 24,065, which included the following elements: vertical and horizontal unbundling of generation, transmission and distribution; opening up of all segments to the private sector; and separation of the regulatory function from policy setting.The Wholesale Electricity Market (MEM), which covers up to 93% of total demand corresponding to the Argentine Interconnected System (SADI), was also created in 1992.[30] The reforms implemented in the 1990s led to high investment, which allowed for a 75% increase in generation capacity, resulting in the decrease of prices in the wholesale market from US$40/MW·h in 1992 to US$23/MW·h in 2001.[32] As a response to the 2001 economic crisis, electricity tariffs were converted to the Argentine peso and frozen in January 2002 through the Public Emergency and Exchange Regime Law.In September 2006, SENER launched the Energy Plus (Energía Plus) program with the objective of increasing generation capacity and meeting the rising demand for electricity.The program also recognizes the need for individual behavioral changes to be promoted with an educational strategy, with the public sector setting the example by assuming a leadership role in the implementation of energy conservation measures in its facilities.[35] The PRONUREE includes short- and long-term measures aimed at improving the energy efficiency in the industrial, commercial, transport, residential and service sectors and public buildings.The program, financed by the government, aims to replace incandescent bulbs with energy efficient compact fluorescent lamps (CFLs) in all households connected to the electricity grid and selected public buildings.In particular, the Public Service Regulatory Agency in the Province of Córdoba (ERSeP) agreed in February 2008[39] to a 17.4% additional charge to residential customers.[43] Other provinces (i.e. San Juan, Chaco, Formosa, Corrientes, La Pampa, Neuqen, Río Negro and Entre Ríos) are expected to raise tariffs in the near future.Both plants, which have been financed through the FONINVEMEM (total investment amounts up to US$1,097 million), are expected to start full operations at the beginning of 2009.[50] In addition, the Planning Ministry announced in July 2007 the commissioning of five new thermal plants with a total capacity of 1.6 GW and an overall investment of US$3,250 million.The Atucha II nuclear power plant, whose construction started in 1981, was to be completed and to add 750 MW of generation capacity by 2010.In addition, the Embalse nuclear power plant, with 648 MW of generation capacity, was to be refurbished to extend its operational life beyond 2011.[53] On the hydropower side, the Yacyretá dam's reservoir was elevated by 7 m to the height of 83 m as contemplated in its original design, which increased its capacity from 1,700 to 3,100 MW.[55][56][57] Additionally, in 2006, bidding for the expansion of Yacyretá with the construction of a new 3-turbine plant in the Añá Cuá arm of the Paraná River was announced by the Government.[26][59] In addition, the Federal Plan for Transport of Electric Energy II, defined in 2003 and updated in 2006, has the objective of addressing the constraints faced by the regional transmission networks in the period up to 2010.The publicly owned share corresponds to nuclear generation and to the two bi-national hydropower plants: Yacyretá (Argentina-Paraguay) and Salto Grande (Argentina-Uruguay).[61] As of August 2007, there are only three energy-related registered CDM projects in Argentina, with expected total emissions reductions of 673,650 tons of CO2e per year.This project has the objective of guaranteeing access to electricity to 1.8 million people (314,000 households) and to 6,000 public services (schools, hospitals, etc.)Electrification of this dispersed market will be mostly carried out through the installation of solar photovoltaic systems, but also through other technologies such as micro-hydraulic turbines, wind and, eventually, diesel generators.
Argentina electricity supply by year
Argentina renewable electricity production by year
The Yacyretá dam. It is planned to increase its height to increase the electricity generation capacity in Argentina and Paraguay.