The development of the renewable energy sector in Argentina is expected to progress at a ‘measured pace’ between now and 2035, new analysis from GlobalData has found.
According to GlobalData’s report, Argentina Power Market Trends and Analysis by Capacity, Generation, Transmission, Distribution, Regulations, Key Players and Forecast to 2035, wind and solar are set to be the primary contributors to renewable energy growth in Argentina over the coming decade.
Solar PV capacity is projected to rise from around 2.5GW in 2025 to approximately 7.9GW by 2035, while wind capacity is forecast to increase from about 4.5GW to 7.6GW over the same period, it noted.
Renewable resources
“Argentina has one of the strongest renewable resource bases globally, particularly for wind and solar,” commented Mohammed Ziauddin, power analyst at GlobalData. “However, capacity additions are constrained by economic conditions, grid limitations, and evolving policy priorities, resulting in steady rather than accelerated growth.”
Argentina benefits from strong conditions for both wind and solar generation – wind, which is the largest contributor to Argentina’s non-hydro renewable capacity, tends to be located in Patagonia and southern regions, while solar deployment has been prominent in the northwest and Cuyo.
In both cases, however, further expansion has been constrained by grid constrains, limited transmission capacity, financing challenges and reduced availability of long-term government-backed procurement programmes.
“Renewable energy expansion in Argentina is influenced by macroeconomic conditions and evolving policy priorities,” Ziauddin added. “High inflation, currency volatility, and elevated financing costs have impacted project viability and slowed investment momentum.
“In addition, transmission infrastructure remains the primary constraint limiting renewable expansion, restricting the integration of new capacity from high resource regions.”
Hydrocarbon production
Under the Milei government, policy focus has shifted towards domestic hydrocarbon production, particularly the Vaca Muerta shale formation, which has boosted gas infrastructure and kept energy prices relatively low for consumers and businesses.
As GlobalData noted, while gas-fired capacity is expected to remain stable, coal-fired capacity is set to decline, from around 770MW in 2025 to approximately 120MW by 2035.
“Over the next decade, Argentina’s renewable energy expansion will depend on improvements in transmission infrastructure, stabilisation of macroeconomic conditions, and the development of market-based procurement mechanisms,” said Ziauddin.
“While wind and solar capacity will continue to grow, the pace of expansion will remain measured, with natural gas continuing to provide system stability and flexibility.” Read more here.
