Argentina Renewable Energy Auctions
Argentina has some of the world’s best renewable energy potential, but financing the opportunity to explore it has been challenging. In early 2016, the Government of Argentina launched the RenovArinitiative. It is an auction-based renewable energy program designed to scale-up private renewable generation capacity. The RenovArscheme helps address the key constraints to Argentina’s renewable energy development. These include poor access to long-term funding sources and perceptions of high country and sector risks.
To further enhance investors’and financiers’ confidence, the World Bank Group (WBG) supported the preparation of the first RenovArtenders and provided a $480 million guarantee to backstop certain government obligations under the program. In doing so, the WBG support helped Argentina unlock its renewable energy potential by creating a market and mobilizing about $3.2 billion of mostly private investments.
PROJECT HIGHLIGHTS
The Government of Argentina launched a program to promote private investment in renewable energy. The World Bank’s support started with helping design the program. The Bank also reviewed bid documents and devised a risk mitigation structure.
Structuring involved a $480 million guarantee from the International Bank for Reconstruction and Development (IBRD). It backstops critical aspects of Argentina’s payment obligations.
The World Bank reached out to the global investor base and participated in investors’ road shows. This enhanced the program’s attractiveness.
World Bank support helped Argentina unlock its renewable energy potential. About $3.2 billion of mostly private investment was mobilized.