Why this is important to Wisconsin businesses: A new law contains government incentives to spur production.
Argentine President Mauricio Macri’s energy agenda, Plan RenovAr, as well as a recent new law, stipulates that 8 percent of the nation’s energy grid must be supplied by renewable sources by the end of 2017, and 20 percent, or 10,000 megawatts, by 2025. Currently, renewable energy accounts for only 1.8 percent of power consumption. Thus, massive investment will be required in the Argentine energy sector to meet rising demand and diversify the country’s energy matrix. The new law offers fiscal benefits for investors in renewable energy and promises the creation of a trust fund to provide payment guarantees and project financing.
This month, Argentina released its first invitation to tender for alternative energy projects. New wind and solar power projects are expected to create 1,000 megawatts of alternative energy at a time when the country is working to reduce its energy deficit and energy imports. These tenders are the first stage of the national renewable energy agenda. The country expects to receive numerous offers in the next few months and $5 billion in investment by the end of 2017.
A new stimulus program was also unveiled this month aiming to increase domestic production of natural gas, particularly shale and tight gas. The program will take effect at the end of 2018 and will offer a stimulus of $7.5 per million BTU to new natural gas projects. The majority of shale and tight gas is found in Vaca Muerta, Neuquén, where some of the largest reserves of these hydrocarbons in the world can be found.