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Argentina

Solar Thermal Argentina

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In terms of solar thermal energy, Argentina has entered a process of incorporating this technology taking the construction sector as an engine for market development, in absence of laws and regulations to boost it.

There are isolated initiatives. In fact, there are municipalities with Bills or solar ordinances, such as the city of Rosario.

But we could say that the field of solar thermal energy in Argentina is still in diapers.

Up to today, year 2015, there are no comprehensive measures of solar resources available, equipment have not been subjected to testing or certification and have no market sector statistical information.

Generally thermo-siphon systems are installed for DHW heating in houses and townhouses where there is no access to the gas network. Equipment for pool heating are also installed.

A 2009 estimate indicates that around 2,000 m² (about 22,000 ft²) of collectors were installed that year and were about doubled in 2010, reaching 4,000 m2 (about 43,000 ft²).

Flat collectors then constituted 2/3 of the market with a large proportion of domestic products, being vacuum tubes the most imported collectors.

In 2015, it is calculated that above 30,000 m² (around 323,000 ft²) collector capacity was installed; half of them for heating outdoor pools.

Most companies in the sector are located in the Central Region (mainly in Buenos Aires) and the Northwest Region is the one with the largest area of collectors installed, followed by the Northeast.

How could this technology’s sustained development be boosted ?

As far as the public sector is concerned, it would require:

– Elimination of the competitive disadvantage caused by high subsidies for electricity and gas network.

– Standards sanctioning and incentives creation.

– Set an example by incorporating solar systems in its infrastructure facilities.

As for the private sector, it would require:

– Introducing improvements in product quality.

– Training skilled labor on sizing and system design, installation and maintenance.

– Facing the additional challenge of foreign competition, in some cases, with equipment at a lower cost and better performance than those of domestic manufacturing.

Only in the residential sector, there is an estimated potential of 6 million m2 (about 65 mill ft²) for the production of DHW; 2.2 million m2 (around 24 mill ft²) in the public, commercial and services sectors, plus a significant potential in the industrial sector.

Considering 20 years of useful life for a thermal solar system, full investment could be recovered in about 15 years in Buenos Aires province, for instance, when compared with actual price of gas network and considering its level of insolation.

However, in cases of bottled gas and electricity, solar thermal power technology is already profitable in many parts of the central and north regions of the country.

Compared with bottled gas, investment in solar thermal systems could be recovered in 2 years.

Compared with the use of an electric water heater, investment in solar thermal systems could be recovered in about 5 years.

A consistent solar thermal market would provide several benefits to the country:

– Reduction in conventional energy demand.

– Reduction in energy imports

– Reduction of greenhouse gases’ emissions.

– Creation of a new industry sector and new jobs.

– Creation of a national industry sector with high added value.

Argentina

Solar Argentina

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In 1992, Argentina divided the public electricity sector in generation, distribution and transmission, and sold it to private investors.

When the 2001-2002 economic crisis shook the country and its currency was devalued, the government, fearing the political cost an electricity price increase would cause, froze natural gas prices and end users tariffs in 2002.

The solution worked in the short-term, but stopped the exploration of new energy sources and investment in infrastructure improvements by foreign investors.

The national natural gas extraction declined, leaving power generation facilities unused and increasing energy imports.

With the economic recovery, demand for energy soared by an average of 5% a year since 2003.

Enarsa was created in 2004 with the primary mission of exploring and extracting hydrocarbons, oil and natural gas; plus transportation and distribution of these resources. However, power failures remain a problem.

Argentina has invested heavily in a renewable resource: water. This resource accounts for about 35% of electricity, so a greater diversification is necessary to avoid the problems a severe drought would cause.

Oddly enough, judging by the development it has taken so far, Argentina is one of the countries with the highest potential for renewable energies.

Argentina could supply all of its electricity consumption with renewable energy, and could even become a net exporter.

In 2006 the regulatory framework was established with the enactment of Law 26.190/06, giving renewables a national interest. It was set as a target for 2016, that Argentina should reach 8% of electricity generation from renewable sources.

Current figures indicate that in 2016 it will barely exceed 2%, achieving, therefore, only a little more tan 25% of the objective.

In 2009, the national government launched with Enarsa (the public energy company) the GENREN program, which offered to buy 1.000 MW of renewable energy by 15-year fixed contracts.

In June 2010, after an exhaustive analysis, the winners were announced and a total of 895 MW were approved.

Most of the bids were for wind energy.

Even though the central and northern parts of the country enjoy many sunshine days throughout the year that would allow many applications to take advantage of solar energy, only 20 MW photovoltaic solar energy projects were granted in the province of San Juan.

Economic instability in recent decades contrasts with the expected energy crisis in which Argentina is sinking ever more rapidly.

With rates that do not reflect the true cost of resources nor the need for investment and a subsidies policy that will soon come to an inevitable end, renewable energies gain a value that they never had before.

Uncertainty about the availability and value of energy in the future is a question that only the state can solve with energy planning and implementing public policies, promoting energy efficiency and clean energy.