Fast Market Research recommends "Argentina Power Report Q1 2014" from Business Monitor International, now available
Boston, MA -- (SBWIRE) -- 12/31/2013 -- Political and macroeconomic factors cast a shadow over the short-term development of Argentina's electricity sector. Protectionist policies have long defined the market, and while a change in the presidency is almost certain in 2015's elections - there are no obvious candidates so far. Argentina is keen to reduce its reliance on expensive energy imports, but the current operating environment does little to attract investment from foreign firms. The government received just one firm bid for the expansion of the Arauco I wind farm - confirming the need for a change in the tender process. Access to finance is another concern, holding back developments in the power sector. As such, the news that two projects, a gas-fired power plant and a hydroelectric power plant, have been approved in late 2013 is extremely positive. And once the political scene becomes clearer, we believe this could pave the way for greater foreign investment in the electricity sector.
View Full Report Details and Table of Contents
Argentina's power generation increased by an estimated 4.6% during 2012, just above an increase in consumption rates, estimated at 1.3%. We expect that generation will have slowed down in 2013, climbing by just 1.6%, before improving in 2014 as new projects come online. Looking forward, several factors (including rising inflation and the government's interventionist stance) mean that Argentina's business environment is unattractive to potential investors.
In terms of generation, thermal-based sources, primarily natural gas, remain the cornerstones of the electricity mix. Roughly 65% of electricity is currently generated from oil-, gas- or coal-fired power plants, with hydropower providing the next largest contribution, of 28%. Despite the government's efforts to diversify the electricity mix away from unreliable hydropower and costly thermal imports, we do not expect to see a significant shift in the electricity mix during the course of our 10 year forecast period.
Key developments for Argentina's power sector this quarter include:
- In late September 2013, nuclear power station Atucha II passed its first grid synchronisation test. The power station is expected to begin operations by early 2014.
- A consortium formed of Argentina's Electro Ingenieria and China's Gezhouba Goup, won a US$4.1bn contract in late August 2013 to construct two hydroelectric dams on the Santa Cruz river in Patagonia.
- In September 2013, Siemens Energy secured a contract - estimated to be valued at US$800mn - for the turnkey construction of two gas-fired power stations in the Buenos Aires province. The power stations are scheduled to start operations in 2015.
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Energy research reports at Fast Market Research
You may also be interested in these related reports:
- Turkey Power Report Q1 2014
- Kenya Power Report Q1 2014
- China Power Report Q1 2014
- Poland Power Report Q1 2014
- Mexico Power Report Q1 2014
- United Kingdom Power Report Q1 2014
- Global Power Survey 2013-2014 - Market Trends, Marketing Spend and Sales Strategies in the Global Power Industry
- Brazil Power Report Q1 2014
- Power Quarterly Deals Analysis: M&A and Investment Trends - Q1 2013
- Romania Power Report Q1 2014