Argentina Power Market - Growth, Trends, and Forecast (2019 - 2024)

Argentina Power Market - Growth, Trends, and Forecast (2019 - 2024)

  • July 2019 •
  • 99 pages •
  • Report ID: 5797243 •
  • Format: PDF
Market Overview
The installed power capacity in Argentina is expected to grow at a CAGR of 2.58% during the forecast period of 2019 – 2024. The government of Argentina has taken various steps, including boosting private investment for power network expansion. The Public-Private Partnership (PPP) law was introduced in November 2016 to regulate and encourage private investment in critical sectors of the country’s economy, including electricity transmission infrastructure. On the flip side, the widening economic crisis took place in parallel to the increasing demand for electricity, and due to the fiscal deficit, the government could not invest sufficiently in the power sector to increase domestic generation capacity.

- The conventional thermal power accounted for more than half of the electricity generation in 2018 in Argentina.
- Due to geopolitical and global economic pressures, the Argentine government re-evaluated the waste management sector and promoted projects based on waste-to-energy. The government launched two programs, with a focus on developing renewable energy, like biomass and biogas. This, in turn, is expected to create a significant opportunity for the waste-to-energy industry in Argentina in the near future.

Key Market Trends
Conventional Thermal Power to Dominate the Power Generation Market

- In 2018, electricity generation through conventional thermal power sources reached 87,725 GWh, representing a decline of almost 2.6%, compared to the 2016 levels. Despite of this decline, thermal power generation remained as the main source to meet the electricity demand in Argentina.
- Oil, natural gas, and coal are the thermal power sources used for power generation in the country. However, the use of fossil oil and diesel in the power sector has reduced in recent years due to an increase in natural gas production in the Vaca Muerta shale play. Furthermore, in 2018, the supply of natural gas allocated to the electricity sector was higher than that of 2017. The energy sector of Argentina is expected to be gas-based in the future.
- In December 2018, the US and Argentinian officials signed an agreement to work together to strengthen the energy infrastructure in both countries. Both countries have agreed to expand electricity generation from natural gas and convert existing fossil fuel power plants to operate using combined-cycle natural gas technology.
- In March 2018, Argentina’s state-run energy company, YPF commissioned a new thermal power plant in the famous Vaca Muerta Shale play. The Loma Campana power plant is powered by two GE turbines with 110 megawatts capacity each. It will supply electricity to roughly 380,000 households, using natural gas extracted from the unconventional formation in the Neuquén Province.
- Adding to this, there are around 9.5 GW of thermal power plants in the pipeline and planning stages in the country. These projects are worth around USD 9.92 billion and are expected to come online by 2025. The expansion of Vuelta de Obligado and Guillermo Brown thermal power, together with the construction of a new combined cycle power plant, is expected to be the major projects to be carried out in the mid-term.

Competitive Landscape
The Argentina power market is fragmented. Although majority of the market share is owned by government and private companies, some of the key players in the power generation sector include Pampa Energia, YPF Luz, CEPU, AES and Enel. Further, the transmission sector is dominated by Transener, and six other regional transmission companies.

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- The market estimate (ME) sheet in Excel format
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