1. Renewable Energy Comeback
Keynote Speech
Argentina´s
Renewable Energy Comeback
Current Status & Outlook
Mauro G. Soares
National Director for Renewable Energy
LAC-CORE Finance Summit Miami, 3-5 October, 2016

2. […]
BNEF, April 2016

3. Ernst & Young RECAI, May 2016

4. The size of the opportunity
Investment (billion US$)
New Capacity Additions to 2025
~50%
Renewables
Renewables
+10 GW
15.0
Hydro
10.0
Hydro
+8 GW
~50%
Thermal
4.0
Thermal
+3 GW
Nuclear
2.8
+0.1 GW
Nuclear
Transmission
5.0

5. The NEW Re Regulatory Framework
Mandatory Targets
2021
2025
Resource
Diversification
Geographical and Technological
Generous Fiscal Incentives
Applicable to IPPs and Local Manufacturers
FODER
Public Trust Fund for Guarantees and Financing
New Utility-Scale
RE Framework
Law
Distributed RE Regulation (work in progress)

6. Three distinct Renewable energy Markets
100%
of RE Mandate
Public Tenders
Private PPAs for Large Users
Opt-Out
Self Generation
Opt-Out

7. RENOVAR 1 - TENDER OBJECTIVES AND BENEFITS
Targets &
Expected
Benefits
1.000 MW = + 3% RE penetration
20-year PPA
US$ 300 million annual fuel savings
5k new jobs
2 MM t/y GHG reduction
600
Wind
300
Solar PV

8. RENOVAR 1 – RISK MITIGATION
PROJECT QUALITY
- Technical Requirements
- Certified Energy Production Report
- Environmental Permitting and Land RIghts Required
PROJECT DELIVERY
- Financial Requirements to the Bidders (Sponsor)
- High Guarantee Amounts
- Construction Milestones Committed and Penalized
PROJECT CASH FLOW
(liquidity, repayment)
- Dispatch Priority (by Law) and Priority Payment
- Energy Payment Guarantee through FODER
- Annual Adjustement Factor / Incentive Factor
EXCHANGE RATE AND
REPATRIATION OF CAPITAL
- Energy Payment Guarantee
- Inconvertibility/Intransferability (cause for sale, put option)
PPA EARLY TERMINATION
(offtaker, country risk)
- Put Option (fixed predefined price)
- Sovereign Guarantee
- International Arbitration
- World Bank Guarantee

9. RENOVAR 1 – CONTRACT STRUCTURE & GUARANTEES
Power Purchase Agreement 1
FODER Trust Adhesion Agreement 2
Energy Sales
Energy Payment and Early Termination Guarantees
Energy Payment
FODER
Guarantee 1
Sovereign
Termination Payment 1 2
World Bank Guarantee
Termination Payment 2 3

10. Renovar 1 - Bids SUBMITTED
HEAT MAP
123 Bids for 6.3 GW aggregate
Bids: 49
GW: 3.5
Provinces: Buenos Aires, Chubut, Río Negro, Santa Cruz, Neuquén, La Rioja, La Pampa, Mendoza, Córdoba and Santa Fé
Wind
Bids: 58
GW: 2.8
Provinces: Salta, San Juan, Jujuy, Catamarca, San Luis, La Rioja, Mendoza, Neuquén, La Pampa, Córdoba, Buenos Aires and Chaco
SOLAR
Bids: 11
MW: 53
Provinces: Entre Ríos, Corrientes, Córdoba, Tucumán, Santa Fé, Misiones and San Luis
BIO
Bids: 5
MW: 11
SMALL HYDRO
Provinces: Río Negro and Mendoza

11. RENOVAR 1 – TECHNICAL QUALIFICATION
Passed: 105
Rejected: 18
Total MW
Bids: 42
MW: 2.870
Total MW
Bids: 7
MW: 598
WIND
WIND
Bids: 50
MW: 2.305
Bids: 8
MW: 506
SOLAR
SOLAR
Bids: 8
MW: 23
Bids: 3
MW: 30
BIO
BIO
Bids: 5
MW: 11
Bids: 0
MW: 0
Small
Hydro
Small
Hydro

12. RENOVAR 1 - PRICES
Technology
PRICE US$/MWh
BIDDED
MAXIMUM Allowed
Minimum
Average*
WIND
49,1
69,5 82
SOLAR
59,0
76,2 90
BIOMASS
110,0
114,6
110
BIOGAS
118,0
177,8
160
Mini Hydro
111,1
114,5
105
All data subject to revission
(*) Weighted average of all qualiffied bids before transmission limitations.

13. Renovar 1 – bid prices for wind projects

14. Renovar 1 – bid prices for solar projects

15. Next Steps
Final Award of Round 1 winners Friday, October 7
Subscription of Round 1 contracts Starting late October
Regulation of Private PPA Market Late November 2016
RenovAr Round March-April 2017
New rules for distributed RE Work in progress

17. Thank you Undersecretariat of Renewable Energy
Secretariat of Electric Power
Ministry of Energy and Mining
Argentine Republic
Paseo Colón 171 Piso 8 Oficina 812
Tel /8186
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