Abstract:
In 2015, Mauricio Macri became President of Argentina and declared solving the energy crisis as one of his top priorities. When Macri’s administration attempted to raise utility tariffs, however, it faced loud protests from citizens. In search of solutions to growing shortages, the government seized on Argentina’s still largely untapped, but potentially vast renewable energy sector and created an ambitious program called RenovAr (renew in Spanish).
By 2016, the country’s share of renewable energy stood at less than 2 percent of the power mix. RenovAr’s goal was to raise that percentage to 20 percent by 2025.
More renewable energy in the electric system was a welcome improvement, but seamlessly integrating renewables into electricity grids had proven challenging in many countries. Argentina’s cash-strapped wholesale electricity market, which for the better part of two decades had seen few upgrades, would have to contend with a host of expected and unexpected bottlenecks.
Learning Objective:
Understand the impact of energy subsidies on the energy market and the incentives created; explore the tradeoffs that emerge when trying to integrate renewable energy into existing grids; and, examine how transmission policy and regulation will have to be adapted to integrate renewable energy.
