In a significant move towards renewable energy optimization, Argentina has announced a public tender to privatize four major hydropower plants located in Neuquén, Eastern Argentina. These facilities are crucial to the nation’s energy matrix and include the 1 GW Alicurá operated by AES, the 1.3 GW El Chocón managed by Enel, the 500 MW Cerros Colorados run by Duke Energy, and the 1.4 GW Piedra del Águila under Piedra del Águila Hidroeléctrica Argentina. The public tender will see the transfer of majority shares currently held by state-owned companies ENARSA and NASA over to the private sector within the next six months. ENARSA holds a commanding 98% share, while NASA owns the remaining 2%.
Managed by the Argentinian Agency for the Transformation of Public Enterprises, this privatization initiative is part of a broader strategy to rejuvenate the nation’s hydropower sector. Hydropower already constitutes 24% of Argentina’s total installed capacity of 48 GW, making it a cornerstone of the country’s renewable energy resources. The transfer of these assets to private entities aims to enhance operational efficiency and attract much-needed private investments in the sector. The government is optimistic that by involving private firms, the long-term sustainability and efficiency of the hydropower assets will improve, leveraging private sector expertise and resources.
Strategic Shift Towards Private Investment
In a major push toward renewable energy improvement, Argentina has launched a public tender to privatize four significant hydropower plants in Neuquén, Eastern Argentina. These plants are essential to Argentina’s energy infrastructure and include the 1 GW Alicurá, operated by AES, the 1.3 GW El Chocón, managed by Enel, the 500 MW Cerros Colorados, run by Duke Energy, and the 1.4 GW Piedra del Águila, led by Piedra del Águila Hidroeléctrica Argentina. The tender will transfer the majority shares, currently held by state-owned ENARSA and NASA, to the private sector within six months. ENARSA holds 98% and NASA owns 2% of these shares.
The Argentinian Agency for the Transformation of Public Enterprises is managing this privatization as part of a broader strategy to revitalize the hydropower sector. Hydropower accounts for 24% of Argentina’s 48 GW total installed capacity, making it a key component of the country’s renewable energy resources. Transferring these assets aims to boost operational efficiency and attract essential private investments. The government is confident that involving private sector expertise will enhance the long-term sustainability and efficiency of these hydropower assets.
