Argentina is moving along with its latest round of tenders, the third one under the RenovAr program, which aims to fulfill a government promise to achieve 20% of renewables by 2025.
The tender has been dubbed “MiniRen” because of its focus on small projects that connect to mid- and low-voltage distribution networks, instead of high-voltage transmission lines.
The opening of the economic offers this week had 52 projects cleared in the technical evaluation stage, which were allowed to present offers.
In terms of prices, solar and wind were by far the most competitive, with an average price of US$58.2/MWh for wind and US$57.9/MWh for solar. Wind, meanwhile, offered the lowest minimum price, at US$52.5/MWh while solar offered US$54.2/MWh.
The rest of the technologies offered much higher prices: US$103.6/MW was the average price for small hydros, US$106.1/MWh for biomass, US$129.5/MWh for landfill biogas and US$159/MWh for biogas.
However, since projects skewered heavily toward wind and solar, the average offered price across all technologies sat at US$67.6/MWh. Of the 323.5MW offered, 154.5MW were wind, 127.9MW solar, 19.2MW biogas, 8.5MW biomass, 8.4MW small hydros and 5MW landfill biogas.
Assuming most of the projects are approved, the final average price would be the most expensive ever tendered under RenovAr, breaking a trend of prices falling with each installment. For round 1, the final average price was US$61.3/MWh. For addendum round 1.5, the average price was US$53.98/MWh and for round 2 prices dropped to an average of US$51.8/MWh.
In round 2, wind projects brought the average down, offering a median price of US$40.6/MWh, and solar, which offered a median of US$42.3/MWh. Biogas, meanwhile, reached the tender’s highest price, with one project being adjudicated a price of US$177.9/MWh.
Projects tendered under RenovAr 1, 1.5 and 2. Orange is solar, blue is wind, purple is hydro, green is biomass, yellow is biogas and brown landfill biogas.
In terms of regional distribution, 16 projects will be in the coastal province of Buenos Aires. Next are Mendoza (12), Córdoba (6), San Luis (4), Santa Fe, Catamarca and Salta (3 each) and La Pampa (2). The provinces of Formosa, Santa Cruz, Chaco and San Juan each got one project.
Meanwhile, the energy ministry published a list of the tax benefits the project