The government of Argentina is to launch a national and international competitive public tender for the sale of majority shareholding in four significant hydropower plants located in Neuquén, in the country’s eastern region. This move is part of a broader effort to renew the concessions for these critical energy assets and attract private investment into the country’s energy sector.
The four hydropower plants involved in the tender process include some of Argentina’s largest and most important renewable energy projects:
- Alicurá (1 GW), currently operated by AES Corporation,
- El Chocón (1.3 GW), operated by Enel,
- Cerros Colorados (500 MW), operated by Duke Energy, and
- Piedra del Águila (1.4 GW), operated by Piedra del Águila Hidroeléctrica Argentina.
The tender will transfer the majority shares currently held by state-owned energy companies ENARSA (98%) and NASA (2%) to the private sector, a process expected to be completed within the next six months. The Argentinian Agency for the Transformation of Public Enterprises (ATPE) will oversee the management of the sale and transition.
This public tender aligns with the government’s strategy to attract foreign investment and improve the efficiency and operation of key infrastructure. The plants in Neuquén are vital components of Argentina’s power generation system, contributing substantially to the country’s electricity supply.
As of the end of 2023, Argentina had a total installed electricity generation capacity of 48GW, with hydropower accounting for 24% of that capacity, or 11.359 GW. The four plants under tender collectively generate nearly 4.2 GW, a significant portion of the country’s hydroelectric output. Renewing their concessions is viewed as critical to maintaining Argentina’s energy supply, especially as the country seeks to balance its energy mix with increasing reliance on renewable sources.
The competitive nature of the tender is expected to attract interest from global energy companies, as well as domestic players looking to expand their foothold in Argentina’s energy market. Potential investors will be closely watching the outcome, particularly given the country’s vast untapped renewable energy potential and strategic location in South America.
This initiative comes amid broader efforts by the Argentine government to modernize its infrastructure and boost economic growth by encouraging private sector participation in sectors traditionally dominated by the state.
Further details about the bidding process and conditions will be released in the coming weeks as the government seeks to ensure a transparent and competitive sale process.
