Increasingly diverse energy matrices

The transition toward renewable energy gains ground in Argentina

In 2015, renewable sources made up a minimal share of Argentina's energy grid, accounting for less than 2% of total electricity generation according to data from Compañía Administradora del Mercado Mayorista Eléctrico S.A. (CAMMESA), the country's electrical utility company. This dependence on fossil fuels was a problem that not only generated harmful emissions, but it also put the country's energy security at risk. 

Between 2011 and 2015, Fundación Avina played a key role in connecting stakeholders in the energy ecosystem to update renewable energy regulations. Through working groups, these stakeholders created unifying visions and new spaces for multi-sector collaboration, including an Executive Committee and a highly rigorous Technical Committee. In addition, Avina led three rounds of the Energy Scenarios initiative, which contributed sound evidence to support ambitious targets. In terms of advocacy, Fundación Avina supported the formation of the Alianza por las Energías Renovables de Argentina (AERA), a renewable energy alliance that engaged in crucial dialogue with the legislative and executive branches of the government, culminating in the passing of Law 27.191 in 2015, a cornerstone in the transformation of the energy grid. 

The law emerged from the need to diversify an energy system heavily dependent on hydrocarbons and to decar- bonize a sector responsible for half of the country's green- house gas emissions. It updated and expanded the existing regulatory framework, setting progressive targets for large users to comply with minimum renewable energy usage requirements. Other important components of the law included dispatch priority, which prioritizes the entry of renewables into the energy system, and a tax incentive package to reduce project costs and encourage investment. In addition, it created two mechanisms to help reach the new goals: RenovAR, which attracts international capital and technology through a public bidding process, and Mercado a Término de Energías Renovables (MATER), which enables direct contracts between energy generators and large users, making the sector more dynamic. 

The energy transition has advanced steadily in Argentina. The share of electricity generated by renewable sources grew from 2% in 2015 to 16% in 2025. (The law set a goal of renewables accounting for a 20% share of the grid by 2025, which was not met if looking at yearly averages, but monthly numbers have surpassed the goal in certain instances.) Wind power generated 67% of total renewable energy, followed by solar power with 21%, and bioenergy and hydropower with 12%. This growth has diversified the grid, reduced its dependence on fossil fuels, brought down emissions, and strengthened energy security. The expansion of renewable energy also sparked demand and strengthened the market, creating green jobs and contributing to the country's economic and technological development. With a cleaner, more robust, and diversified energy grid, Argentina is moving toward a resilient, low-carbon economy, proving that long-term policies can lead to profound and sustainable transformation.