In response to the new “private electric power regime” — launched by Energy minister Aranguren back in November — the Macri administration has seen one of the biggest investments to date; with a whopping US $3 billion to be spent on power plants, together with Mexican companies ICA and CFE as well as Spanish Acciona.
This decision could be one of the most important that the current administration has had to make since coming into power, and could be proof that the interest it claims there is for bringing money into Argentina to invest actually exists in a tangible way. Additionally, many view the proposed investment as a much needed move that could help respond to the country’s increasing energy needs. It’s estimated that the primary stages of expansion in this sector will amount to an impressive investment of around 10 billion dollars; and that’s just in the medium term.
Although there have been other notable investment offers, this proposal from this group really stands out. The US $3 billion investment headed by the private-state group of Mexican and Spanish companies involves the construction of two General Electric (GE) thermal power plants in Córdoba and Paraná and the installation of a ship-to-ship port terminal in Parana de las Palmas.
For scale, each of these thermal plants will be 840 MW (that’s a massive amount of energy) and the regasification plant will be pumping out 17 million cubic meters of natural gas per day to supply the power stations. The companies will have the support of the electricity distributors of Córdoba (EPEC) and Entre Ríos (Enersa).
When it comes to the question of potential returns on the investment in the long term, the Government’s effective game plan is that private companies finance and operate the plants on their own and then make up the investments through the collection of fixed fees and contracts on the sale of energy for 20 or 30 years to the state-owned company CAMMESA.
Although this project certainly appears to be taking center stage, other impressive proposed investments include: Rio Energy‘s intention to close the combined cycle of the Buenos Aires based General Rojo plant along with setting up a new generator in the capital of Entre Ríos, among others. As to when these projects will come to fruition — only time and money will tell.