05. Apr 2017
World bank launches 480-Million-Dollar guarantees over 20 years to support the Fund for the Development of Renewable Energy, which facilitates financing of projects under the RenovAr Program of the country’s Ministry of Energy and Mining
The World Bank Board of Directors have approved guarantee of 480 Million US-Dollars to promote private investment to reach a target of 20% of energy consumption originating from renewable sources in Argentina by 2025.
Specifically, the World Bank guarantee will support the Fund for the Development of Renewable Energy (FODER, in Spanish), which facilitates financing of projects under the RenovAr Program of the country’s Ministry of Energy and Mining.
This initiative seeks to stimulate power generation from wind, solar, biomass, biogas and small-scale hydro sources to achieve the 20 percent renewable energy target by 2025.
The RenovAr Program was implemented in 2016 through two tender rounds (known as Round 1 and Round 1.5) to award 59 projects. These projects will generate 2.42GW and will be implemented throughout the country.
This transaction uses a 20-year World Bank guarantee to mobilize private-sector investments.
The next tender round for renewable energy projects in Argentina is planned to take place in July or August, as Energy Minister Juan Jose Aranguren said in a Bloomberg-interview.
Find detailed information in Spanish on the website of the Argentinian Minstry of Energy and Mining.