Energy & Natural Resources: a Change in Paradigm
The wealth of Argentina’s natural resources, together with its potential for power generation from renewable sources, puts the country in a privileged position in both domestic and international energy markets.
Argentina has a long history of hydrocarbon exploration and production. Natural resources, including hydrocarbon reserves, belong to the provinces in whose territories they are located. Offshore resources (those beyond the 12th marine mile from the base line) are in federal domain and are subject to exclusive federal jurisdiction.
Renewable Energy Promotion Law
Argentina’s demand for power has increased substantially in recent years and is expected to rise. In order to continue to cope with ever-increasing levels of demand, Argentina’s power infrastructure must keep up with its expansion plans. This means that at least 1200 MW of installed capacity will be needed each year to meet the growing electricity demand. However, Argentina’s energy matrix is highly dependent on fossil fuels and diversification through the promotion of energy generation from renewable sources has been presented by the new administration as a goal of its energy and environmental policies.
Vaca Muerta: The Road to Energy Autonomy
Everybody is talking about it, but what is the real attraction of Vaca Muerta? Why is it so important to foster the development of this resource?
Oil & Gas Industry in Argentina
Argentina is a significant player in South America’s hydrocarbon market, along with Venezuela, Brazil, Ecuador, Bolivia and Colombia. According to the 2015 edition of the BP Statistical Review of World Energy, Argentina is the second largest natural gas producer and the fourth largest producer of crude oil in Central and South America, based on 2015 statistics. Hydrocarbons, especially natural gas, have historically accounted for a large portion of Argentina’s energy matrix (up to more than 50% of its total consumption).
Highlights of the Renewable Energy Promotional Regime
Under the New Promotional Scheme, large consumers (i.e. consumers with a demand equal to or larger than 300 kW) are required to source a minimum level of their electricity consumption from renewable sources, as per the targets and respective dates established above. Failure to meet the applicable targets under the Renewable Portfolio Standard triggers a fine calculated on the basis of the variable cost of power generated using imported diesel oil.
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