Electricity sector in Argentina

Electricity sector of Argentina
Data
Electricity coverage (2016)100% (total);[1] (LAC total average in 2016: 98.2%) [1]
Installed capacity (2020)41,951 MW
Share of fossil energy60.5%
Share of renewable energy33%
GHG emissions from electricity generation (2011)67.32 Mt CO2
Average electricity use (2014)3,050 kWh per capita
Distribution losses (2014)3.3%; (LAC average in 2005: 13.6%)
Consumption by sector
(% of total)
Residential41%
Industrial45%
Commercial and public sector13%
Tariffs and financing
Average residential tariff
(US$/kW·h, 2004)
0.0380; (LAC average in 2005: 0.115)
Average industrial tariff
(US$/kW·h, 2006)
0.0386 (LAC average in 2005: 0.107)
Services
Sector unbundlingYes
Share of private sector in generation75%
Share of private sector in transmission0%
Share of private sector in distribution75%
Competitive supply to large usersYes
Competitive supply to residential usersNo
Institutions
No. of service providersDominating 3 distributors:
Responsibility for transmissionTransener
Responsibility for regulationNational agency (ENRE) and provincial agencies
Responsibility for policy-settingEnergy Secretariat
Responsibility for the environmentSecretariat of Environment and Sustainable Development
Electricity sector lawYes (1991)
Renewable energy lawYes (1998, modified in 2007)
CDM transactions related to the electricity sector3 registered CDM projects; 673,650 t CO2e annual emissions reductions

The electricity sector in Argentina constitutes the third largest power market in Latin America.[2] It relies mostly on thermal generation (60% of installed capacity) and hydropower generation (36%). The prevailing natural gas-fired thermal generation is at risk due to the uncertainty about future gas supply.

Faced with rising electricity demand (over 6% annually) and declining reserve margins, the government of Argentina is in the process of commissioning large projects, both in the generation and transmission sectors. To keep up with rising demand, it is estimated that about 1,000 MW of new generation capacity are needed each year. An important number of these projects are being financed by the government through trust funds, while independent private initiative is still limited as it has not fully recovered yet from the effects of the 2002 Argentine economic crisis.

The electricity sector was unbundled in generation, transmission and distribution by the reforms carried out in the early 1990s. Generation occurs in a competitive and mostly liberalized market in which 75% of the generation capacity is owned by private utilities. In contrast, the transmission and distribution sectors are highly regulated and much less competitive than generation.

  1. ^ a b "World Bank: Access to Electricity (% of total population)". World Bank.
  2. ^ "Renewable energy in Latin America: Argentina | Global law firm | Norton Rose Fulbright". www.nortonrosefulbright.com. Retrieved 20 January 2024.