Argentina Power Market Size

Argentina Power Market Analysis

The installed power capacity in Argentina is expected to grow at a CAGR of 2.58% during the forecast period of 2020 - 2025. The government of Argentina has taken various steps, including boosting private investment for power network expansion and the Public-Private Partnership (PPP) law which was introduced in November 2016 to regulate and encourage private investment in critical sectors of the country's economy, including electricity transmission infrastructure. These factors are expected to drive the market. 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. This, in turn, is expected to hinder the market growth.

• The conventional thermal power accounted for more than half of the electricity generation in Argentina in 2018 and is also expected to be the largest segment during the forecast period.
• 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, in which several projects are expected during the forecast period, 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.
• RenovAr program was initiated by the Argentina government to improve the share of renewable energy in its energy mix to 20% by 2025. Under the RenovAr program, regular public bidding processes were held, in which, different companies presented their investment plans. Hence, the RenovAr program is likely to be one the most important factor encouraging the market growth during the forecast period.