Argentina’s plan to install more than 9GW of renewables by 2025 could prove too ambitious.
That’s according to a new report from S&P Global Ratings, which says bringing renewable generation capacity to 20% could prove a struggle due to the country’s weakened credibility following its economic collapse in 2001.
The report suggests Argentina may encounter pushback from foreign investors and capital markets because of this, which could cause a problem considering the proposed renewable strategy would require a total investment of roughly $15 billion (£12bn).
The nation is largely focused on wind and solar energy, which currently represent 98% of the recent projects awarded.
Its goal is for renewables to represent roughly half of all new power generation capacity within 10 years.
The report recommends Argentina requires wider institutional improvements and a stronger, more investor-friendly regulatory framework to assure investors high risk-return tradeoffs are justified.
It states: “Argentina will need foreign investments that tap the bank and capital markets for funding.
“Yet, in our view, the country’s credibility and reliability is still weak and needs institutional improvements such as a stronger rule of law and a more independent judicial system in order to improve relations with global and local investors.”
The Republic of Argentina and the International Energy Agency have agreed to increase their co-operation with a new bilateral programme on energy statistics.