Renewables excluding large hydro amount to 7,879 MW, with wind leading at 4,559 MW and solar following. The 2024 cycle saw 307 MW of new photovoltaic installations, forming a third of renewable capacity added that year. The PV market is structured around RenovAr auctions and the Mercado a Término de Energías Renovables (MATER), which offer long-term dollar-indexed PPAs to mitigate currency risk. These contracts support financing from international institutions and infrastructure funds. Project-level cost reductions, particularly in module prices below $0.30/W and tracker technologies, shorten payback periods to under seven years in solar-rich provinces like Jujuy and Salta.
Solar’s penetration in the energy mix rose to cover 12.6% of renewable generation in 2021, and total renewables reached 16.5% of electricity demand in 2024 with intermittent surpassing of the 20% target. The pipeline remains robust with near 4,200 MW awarded under MATER but pending commercial operation, and recent auctions expect an additional 258 MW of solar capacity soon. Distributed solar and rural electrification projects in nearly 20 provinces complement utility-scale growth, contributing social benefits alongside system diversification.
Challenges remain in grid access constraints, import restrictions, and financing in a volatile economic environment. However, solar’s low levelized cost of energy (LCOE), stable regulatory framework, and growing corporate off-take agreements from mining and agro-industrial sectors suggest sustained expansion toward nearly 5 GW by 2030, doubling current capacity and reinforcing solar as a strategic element in Argentina’s energy matrix.
This article was curated and published as part of our South American energy market coverage.
