China-Argentina renewable energy collaboration faces government threat
In the first four months of 2025, renewable energies have made a significant impact on Argentina's power matrix, accounting for 17.2% of the total energy produced. This trend is set to continue, as the expansion of renewable energy sources is expected to advance strongly due to their competitiveness and stable energy demand in the coming years.
According to data, 70% of the renewable energy generated so far in 2025 comes from wind energy, followed by solar at 19%. This shift towards renewable energy is largely due to the RenovAR program of 2016, which facilitated the mobilization of resources in the initial stage of renewable energy development in Argentina.
Chinese investment in renewable energy in Argentina has shown constant growth and diversification. Chinese companies such as China Machinery Engineering Corporation (CMEC) and China Three Gorges Corporation have realized large solar and wind power projects in Argentina in recent years. For instance, the Cauchari solar park in northern Argentina boasts an installed capacity of 312 MW and can be expanded to 500 MW. Similarly, China has financed four wind farms with 355 MW of installed capacity in Loma Blanca.
However, the partnership between China and Argentina in renewable energy is under scrutiny due to changes in geopolitical and economic context. The provinces in Argentina are now taking the initiative in the relationship with China, where the former government used to play a facilitating role.
The first national factory for manufacturing solar panels in Argentina is expected to start operating later this year. This development is crucial for the country, which currently only has 78 MW of installed capacity and around 2,900 user-generators for distributed generation, mostly relying on solar panels imported from China.
Despite the progress, there are challenges ahead. Not updating the 2015 law that established benefits to ensure that renewable sources met 20% of Argentina's electricity demand by the end of 2025 creates barriers and challenges for the transition. There is strong pressure to extend the law to maintain the 20% target, along with legal and fiscal protections for those investing in the sector.
In conclusion, China has played a central role in the expansion of Argentina's renewable energy infrastructure over the past decade. However, the future of this partnership and the continuation of the renewable energy expansion in Argentina depend on the political and economic decisions that lie ahead.
