"RenovAr is the way to go"
Jim Yong Kim, President of the World Bank Group (2017)
RenovAr held four successful and very competitive international public tenders in Argentina in the first three years since its creation. The programme acted as well as a spearhead for the development of projects which later sold energy into the Corporate PPAs Market (or MATER).
As of May 2024, 161 renewable energy projects resulting from RenovAr auctions and MATER implementation are already in operation and 49 are under construction, totalling US$11 billion in direct investment and 8.7 GW of new-build capacity.
All of this with the added benefits of already having created over 22,000 direct and indirect jobs, avoiding 34.5 million tons of carbon emissions and saving over US$4.7 billion worth of fossil fuels and variable system costs since 2016.
For detailed information read the RenovAr Case Study.
At the heart of this success is an innovative, multilayered financial de-risking mechanism that has provided effective protection against the country’s unstable economy. The scheme has attracted billions of dollars in long-term investment and financing in renewable generation and equipment manufacturing.
A key element of this guarantee system is the participation of multilateral financial institutions, including the World Bank and IFC.
RenovAr secured a novel risk guarantee scheme from the World Bank, designed ad hoc and implemented for US$730 million.
Find out more information about RenovAr’s structure here
RenovAr's successful implementation by 2025 will help fulfill 16% of Argentina’s reduction commitments under the Paris Agreement and will help achieve the country's UN Sustainable Development Goals.
Meanwhile, the program has already contributed to making renewables the cheapest unsubsidized source of energy in the country.
As further evidence of RenovAr’s success, Argentina’s position in Ernst & Young’s Renewable Energy Country Attractiveness Index (RECAI) shot up to #9 globally and #1 for Latin America in April 2019, just two years after entering the ranking for the first time.
Also noteworthy is that in 2018 Argentina was the third most important global market for Vestas, the world’s largest wind turbine manufacturer.
"The novelty of the RenovAr scheme is its comprehensive approach to mitigating country risks for investors and developers. A decisive feature of Argentina ’s RenovAr support programme is a multi-level safety net of payments and solvency guarantees to leverage investors’ confidence and reduce prices."
International Renewable Energy Agency (IRENA), the Ministry of New and Renewable Energy (MNRE) & G20 India
"RenovAr created competitive renewable energy auctions with 20-year PPAS (...) Argentina received a massive response to its first renewable energy auction (Saurabh 2017); the bids offered on installed capacity were more than six times the requested amount (Braud 2018)."
World Resources Institute (WRI), International Solar Alliance (ISA) & Bloomberg Philanthropies
"Lessons can also be drawn from successful guarantee schemes deployed for renewable energy, such as the World Bank’s guarantee schemes or Argentina’s RENOVAR auctions."
International Energy Agency (IEA)
"RenovAr is one of the best practices (..) we have been so impressed that within a two-year period we moved from new legislation to an auction process that is driving price discovery for wind and solar at very low levels competitive on the grid. It’s remarkable."
Mr. Adnan Z Amin, Director-General Emeritus of the International Renewable Energy Agency (IRENA) - 2017
"An innovative approach unlocked Argentina’s renewable energy market, making it “the most interesting in the world” in just three years."
Forbes
"The IFC expects to make investments of around $800 million in Argentina through December [2018], citing particular investor interest in the country’s renewable energy sector."
Reuters
"After entering E&Y’s RECAI for the first time in 2017, Argentina rose to ninth globally and first in Latin America during 2019."
EY
"The intervention on Argentina’s Renewable Energy Auction was a extremely effective engagement to respond to the needs of a client."
IFC
"Offers received in the context of Round 2 were 4-fold over the ones received at the Round 1 and exceeded 8 times the capacity demanded initially."
El Pais
"Argentina has some of Latin America’s most abundant renewable energy resources—steady winds, year-round sunshine, and hydropower and biomass fed."
IFC
"Vestas Wind Systems said on Tuesday it will establish a hub and nacelle assembly facility in Argentina amid plans to grow its presence in the country."
Renewables Now
"The country has committed to at least increase 4-fold renewables share in the energy mix in the period 2015-2019."
Deutsche Welle
"The Green Climate Fund (GCF), in partnership with the Inter-American Development Bank, approved a US$133mn loan to foment private investment in sustainable energy in Argentina."
BNAmericas
"Argentina aims to cover 20% of its power demand with renewables by 2025."
Reuters
"Argentina is endeavoring to introduce renewable energy generation at a similar scale to that of other Latin American countries."
Green Climate Funds
"The future arrived long time ago hand with hand of renewable energy, but the country realizes just recently."
El Pais
"Argentina´s energy auctions expected to attract as much as $7 billion in investments."
Bloomberg
"To achieve the target of 20% of energy consumption from renewable energy in Argentina by 2025, the World Bank Board approved a US$ 480M guarantee to promote private investment."
World Bank
"Renewable energy developers in Argentina applied to sell 6,366 megawatts of power in an October [2016] auction, more than six times the amount the government plans to sell."
Bloomberg
Climate Breakthrough Project
LAC-CORE
Harvard Kennedy School
Harvard Kennedy School
Harvard Kennedy School
Eisenhower Foundation
