The 185.6 MW Olavarría wind farm will include new transmission infrastructure and supply renewable power to steel producer Acindar, supporting industrial decarbonization.
Argentina’s renewable energy developer PCR has secured financing from the International Finance Corporation (IFC), part of the World Bank Group, for the development and construction of the Olavarría wind farm, a 185.6 MW wind power project that will also expand transmission capacity in the country’s main electricity corridor.
The project is being developed in partnership with Acindar Industria Argentina de Aceros S.A., the Argentine steel producer owned by ArcelorMittal, which will purchase renewable electricity from the wind farm to decarbonize its industrial operations.
With a total investment of USD 275 million, the project represents one of the latest large-scale renewable energy initiatives in Argentina aimed at strengthening grid infrastructure and increasing the share of wind power in the national electricity mix.
IFC is acting as lead structuring bank for a USD 110 million senior corporate loan granted to a dedicated branch of Generación Eléctrica Argentina Renovable I S.A. (GEAR I), backed by both GEAR I and PCR.
The financing package includes:
| Loan structure | Amount | Source |
|---|---|---|
| IFC A Loan | USD 30 million | IFC’s own account |
| B Loan | USD 80 million | Development banks and commercial lenders |
| Total financing | USD 110 million | Structured by IFC |
The loans will be repaid within seven to nine years from disbursement.
According to IFC, the financing aims to mobilize private capital for renewable energy and transmission infrastructure, two key areas for Argentina’s energy transition.
The Olavarría wind project will install 29 wind turbines supplied by Vestas, reaching a total installed capacity of 185.6 MW.
Beyond generation capacity, the initiative also includes significant grid infrastructure upgrades:
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Construction of a 25 km transmission line connecting the wind farm to the Olavarría transformer station
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Expansion and reinforcement of capacitor banks at the Olavarría and Ezeiza substations
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Additional transmission capacity along the Bahía Blanca–Abasto high-voltage corridor
These upgrades will increase power transport capacity in the Sistema Argentino de Interconexión (SADI) — Argentina’s national power grid — linking one of the country’s best wind resource regions with its largest electricity demand center.
Notably, the project is the first renewable generation initiative in Argentina that integrates privately financed transmission infrastructure directly into the national grid.
The electricity generated by the wind farm will supply renewable power to Acindar, supporting the company’s industrial decarbonization strategy in the steel sector.
The project has been approved under Argentina’s RIGI investment incentive framework (Régimen de Incentivo para Grandes Inversiones), designed to attract large-scale infrastructure investments.
Key expected impacts include:
| Indicator | Value |
|---|---|
| Installed wind capacity | 185.6 MW |
| Total investment | USD 275 million |
| Homes powered (equivalent) | ~230,000 households |
| Annual CO₂ emissions avoided | ~320,000 metric tons |
Makhtar Diop, Managing Director of the International Finance Corporation, emphasized the strategic importance of mobilizing private investment to expand renewable energy capacity in Argentina.
“With this investment, we support the expansion of competitive renewable energy supply while strengthening infrastructure and job creation, which are essential for Argentina’s sustainable development,” Diop said.
“Our partnership with PCR mobilizes private capital to deliver reliable and affordable electricity while expanding transmission capacity — helping boost economic growth, improve competitiveness and unlock the full potential of Argentina’s economy.”
Martín Brandi, CEO of PCR, highlighted the project’s broader role in strengthening Argentina’s energy and industrial sectors.
“This financing agreement with IFC allows us to move forward with a project that integrates strategic infrastructure, renewable energy and new opportunities for communities and value chains,” Brandi said.
“Initiatives like this strengthen the country’s competitiveness, promote long-term investment and build a solid foundation for sustainable growth that benefits society as a whole”, agreed.
