Despite
attractive regulatory framework and ambitious government plans for expansion,
we maintain a relatively bearish outlook towards the Argentine renewables
industry, as despite some improvements of late, the business environment
remains largely unappealing for investors and project finance continues to
limit the growth potential of the market. Argentina's positive regulatory
framework for renewables on the surface looks appealing to investors. For
example, the country has adopted an ambitious target of sourcing 8% of its
electricity demand from renewables by 2016, offers various tax incentives to
renewable developers, has implemented a feed-in tariff (FiT) programme, an
energy auction system and a programme called GENREN.
However,
despite these attractive incentives, which in another market would typically
have drawn in developers, there has been a notable lack of international
investor interest in the Argentine renewables market. This was evidenced in
July 2013, when it was announced that domestic utility Impsa was the sole
bidder in the tender for the expansion phase of the Arauco I wind facility in
the country's La Rioja province.
Spanning
Over 40 pages, “Argentina
Renewables Report Q3 2014” report covering the
SWOT, Industry Forecast, Market Overview, Competitive Landscape, Methodology.
Know more about this report at: http://mrr.cm/ZpV
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