Connecting...

Argentina Looks to Grow Economy Via Renewables

14 Jun 09:00 by Steve Walia

W1siziisijiwmtyvmdyvmtmvmtivmjkvmzcvmtixlzm3mju0njk0x20ucg5nil0swyjwiiwidgh1bwiilci4mdb4nduwiyjdxq

The new government in Argentina is looking at how its huge Patagonian plains can be used to support economic growth through renewable energy deployment. This part of the country has a huge expanse of near desert with incredible amounts of sun and wind as yet largely untapped for green energy.

Mauricio Macri, the president, hopes to attract foreign investment of $20 billion over the coming ten years as part of a bid to cover 20pc of the country's needs from green sources by 2025. This compares to Argentina's current levels of under 1pc and represents an ambitious target.

Pampa Engergia is just one company bidding to invest in Argentina's renewable energy via an auction, with up to $2 billion of investment opportunities available, to generate up to 1,000 MW of solar and wind power.

The news comes as developing countries across the world push towards a greener future. Already, investment in the green energy economies of developing countries is exceeding that of developed nations, especially as costs fall.

Last year, renewable energy was the sector with the greatest amount of new generation capacity around the world when compared to all other kinds of technology combined. China represented a third of the total global investment, with Latin America in second place. Chile and Mexico doubled their renewables investment in 2015, and already Uruguay is generating half of its power through green technologies.

Argentina has previously fallen behind due to a struggling business climate and a lack of structural investment overall. The focus had also previously been on shale gas and oil - in particular the vast Vaca Muerta development in Patagonia.

The World Bank has already confirmed that its private-sector wing has placed renewable energy in its priority list for investment.