( 19 May 2025 - By The Net-Zero Circle)
Argentina has reached a new milestone in renewable energy, surpassing 7,133 MW of installed capacity under the legal framework of Law 27.191. However, despite this growth, the country remains far from meeting the 20% renewable share in electricity demand required by 31 December 2025.
As Argentina enters a defining year for its energy policy, the sector is celebrating progress—but also facing critical bottlenecks that could stall nearly a decade of momentum.
According to official data from CAMMESA, the Argentine wholesale electricity market (MEM) added 463 MW of new renewable energy capacity in the first few months of 2025—almost half of the total capacity added throughout 2024.
A clear leader has emerged:
📊 Including large-scale hydropower (>50 MW), total renewable operational capacity in the MEM climbs to 17,968 MW.
The Renewable Energy Term Market (MATER) has become a driving force behind Argentina’s renewable expansion. This mechanism allows direct contracts between generators and large consumers—offering a path forward without relying on government subsidies.
Currently, MATER accounts for:
This system has been critical in navigating transmission infrastructure bottlenecks and sustaining investor interest. However, CAMMESA forecasts a slowdown in growth over the coming months, with only 5 MW of wind and 30 MW of solar expected to come online by June—pending activation of projects from the latest MATER rounds and RenMDI tenders.
Despite impressive growth in installed capacity, the share of renewables in actual electricity demand coverage remains stagnant at around 16.3%—short of the 20% legally mandated by the end of 2025.
Monthly variation:
With the deadline approaching, there is increasing pressure to accelerate project delivery, unlock financing, and expand transmission capacity to meet the legal target.
Passed in 2015 with cross-party support, Law 27.191 marked a turning point for renewable energy in Argentina. Its rapid implementation under the Macri administration enabled the launch of the RenovAr programme, propelling the share of renewables from 2% to over 12% by 2019.
Under subsequent governments, including that of President Alberto Fernández, the MATER market strengthened further. With President Javier Milei now in office, the legal framework remains intact.
Over the past decade:
“It was a remarkable surge in a very short time,” said Héctor Ruiz Moreno, Executive Director of the Argentine Wind Chamber (CEA).
Now, with the law set to expire in December 2025, discussions are underway: should the framework be renewed, revised, or replaced?
✔️ Activate delayed projects from MATER and RenMDI
✔️ Accelerate grid and transmission infrastructure works
✔️ Ensure a clear, long-term investment framework
✔️ Expand market mechanisms: PPAs, green finance, RIGI incentives
Argentina has the resource potential, technical expertise, and a proven investment track record. But without decisive action, the country risks pausing its progress just when the world needs it most.
Reaching the 20% target isn’t only a legal benchmark—it’s a signal to global investors about Argentina’s readiness to lead the regional energy transition.
