IPPToday #86: Argentina sells 117 bidding documents for RenovAr Round 2
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The Ministry of Energy and Mining has opened the tender for Round 2 of the RenovAr Program in order to promote fulfillment of the targets imposed to achieve 8% participation of renewable energy sources in the electricity grid for December 2017, and 20% for 2025.
The request for proposals documents have been approved and the deadline for offer submissions, either technical or financial, was October 19. So far, a total of 117 bidding documents have been sold for Round 2 of Argentina's RenovAr renewable energy programme.
The bidding documents sold are 58% more than in the previous round and the offers are expected to at least double the capacity tendered. The winning bids will be announced on November 29.
The last tender, launched in August, targets 1.2 GW of capacity, including 550 MW of wind, 450 MW solar, 100 MW biomass, 50 MW small hydropower, 35 MW biogas and 15 MW biogas from landfills. For each type of energy, the price cap is set at follows in US$/ MWh: 56.25 for eolic, 57.04 for solar, 110 for biomass, 160 for biogas, 130 for landfill gas, and 105 for small hydroelectric.
The World Bank´s guarantee for RenovAr Round 2 amounts US$250 million. This guarantee will cover potential events of default of the buyer, the Wholesale Electric Market Management Company (CAMMESA).
As we reported in early March, the World Bank approved a US$480 million guarantee to promote private investment in renewable energy projects under the RenovAr Program.
The RenovAr Program was implemented in 2016 through two tender rounds (known as Round 1 and Round 1.5) to award 59 projects. These projects will generate more than 2.4 GW and will be implemented throughout the country. Of the total, 27 projects requested the World Bank guarantee, including 12 wind projects (721 MW), 10 solar projects (306 MW), four small-scale hydro projects (4 MW) and one biogas project (1 MW).
In January, Argentina's Ministry of Mines and Energy signed the contracts with seven developers, for 315 MW of the 1,142 MW awarded in the first round of its renewable energy auction, RenovAr 1. The projects includeed five wind farms, one biomass and one biogas plants.
We have recently reported about several energy news in Argentina:
- Argentina approves 1,310-MW Nestor Kirchner-Jorge Cepernic hydro complex
- IIC finances wind farm in Argentina under RenovAr Program
- Argentina's province of Jujuy launches green bond for largest PV complex in the country
- Argentina launches 1.2 GW round 2 renewable auction