Renewable Energy in Argentina

the State of the Sector in 2025

Between the maturity of existing projects, new investment schemes and infrastructure challenges, renewables are seeking to consolidate their role in the national energy mix.

In 2025, Argentina’s renewable energy sector is in a phase of transition and redefinition. After the strong initial boost provided by the RenovAr program and the rapid expansion of installed capacity between 2017 and 2021, the current challenge is to consolidate what has been built, attract new investment and align renewable growth with the needs of the electricity system and the productive sector.

A consolidated renewable fleet

Argentina currently has more than 6,500 MW of installed renewable capacity, mainly wind and solar, with a strong presence in provinces such as Buenos Aires, Chubut, Santa Cruz, La Rioja, San Juan, Jujuy and Salta. Wind power leads renewable generation, followed by solar photovoltaics, while biomass and small-scale hydropower complete the mix.

According to RICSA data, October marked a historic milestone, with renewables accounting for around 24.8% of electricity generation, meeting the targets set out in Law 27,191.

From state-driven momentum to private-sector leadership

One of the structural shifts of this period has been the move from a model driven by public tenders to schemes based on private power purchase agreements (PPAs). Large industrial users, industrial parks and mining companies have begun to contract renewable energy directly to meet sustainability goals, reduce costs and ensure energy predictability.

This scheme has gained particular relevance in sectors such as mining, oil and gas, where energy represents a critical component of operating costs and of ESG commitments to international markets.

Self-generation and distributed generation: steady growth

Renewable self-generation showed steady growth in 2025, driven by the installation of on-site solar plants in industries, commercial facilities and logistics complexes. Distributed generation, supported by Law 27,424, has advanced unevenly across provinces, with greater momentum in those with clearer regulatory frameworks and tariff schemes.

This model helps reduce demand on the interconnected system and improves energy resilience, especially in regions far from major consumption centers.

Infrastructure and system constraints

One of the sector’s main challenges continues to be electricity transmission capacity. Line congestion in areas with strong wind and solar resources limits the addition of new projects. Without significant investment in high-voltage networks, renewable growth faces structural bottlenecks.

In this context, energy storage and complementarity with natural gas are emerging as key issues to ensure system stability and reliability.

Renewables, mining and the energy transition

The development of lithium, copper and other critical mineral projects reinforces the need for clean and competitive energy. Many mining initiatives are moving forward with hybrid schemes that combine solar, wind, storage and thermal backup, aligning with environmental standards required by international markets.

Renewables are no longer just an environmental policy but a strategic factor for competitiveness.

Investment and regulatory framework

Throughout 2025, the renewable sector has closely followed the implementation of the Large Investment Incentive Regime (RIGI), which could enable large-scale projects in generation, storage and electricity infrastructure. Regulatory predictability, access to financing and contractual stability emerge as key conditions for a new wave of investment.

Outlook toward 2026

Argentina has world-class renewable resources, solid technical expertise and growing demand from industry and mining. The challenge toward 2026 will be to reactivate growth, integrate new technologies such as storage and digitalization, and move forward with long-term energy planning that links renewables, gas and productive development.

In a global energy transition scenario, renewable energy in Argentina has the opportunity to consolidate itself as a structural pillar of the electricity system and of federal development, provided that investment, infrastructure and clear rules of the game are aligned.