Why this is important to Wisconsin businesses: Opportunities for Wisconsin exporters of related products

Argentine President Mauricio Macri has introduced a new, long-term plan to increase production of renewable energy and attract new investment in the sector. The aim is to increase renewable energy output to 8 percent of total energy output by the end of 2017, from the current figure sitting at less than 2 percent. The government plans to further extend this development, hoping to generate 10,000 MW (20 percent of total output) by 2025. In pursuit of these targets, an auction was held in May 2016 as part of a program called RenovAR, in which companies could bid on contracts to produce 1,000 MW of power. A bid of $400 million has already been submitted by Pampa Energia, with the winning bidders set to be announced on Sept. 28.

Toward its goal of being business-friendly, the new government has been working closely with the World Bank to finance this project, allocating $807 million (12 billion pesos) to a trust fund for renewable energy development. This fund will provide payment guarantees for all tender purchases made during the bidding process. The cold winds of Patagonia, which often exceed speeds of 20 mph, can now be exploited for renewable energy production. Emilio Ilac, chief executive of Puente investment bank, describes “huge momentum” for investment in the country, saying analysts have recently rated Argentina “the most interesting investment opportunity in renewables anywhere."

Newly revised legislation creates further incentives for renewable projects. Laws No. 26,190 and No. 27,191 offer various rewards for investing, including VAT return for capital goods purchases and amortization of income tax. All related machinery, parts, components and prime materials can be imported tariff-free through the end of 2017, creating good opportunities for Wisconsin companies to enter the market in the next 18 months.