The Board of Directors of the World Bank (WB) approved today a 20-year guarantee for USD 480 million to give stimulus to private investment in the development of renewable energy in Argentina, which is a key element for the diversification of the energy matrix through clean sources and a contribution to the mitigation of climate change.
“The World Bank’s support has helped our country to make in a few months the progress which had not been done in ten years for renewable energy, contributing to our objective of guaranteeing energy security and reducing the climate change impact”, said Juan José Aranguren, National Minister of Energy and Mining.
In particular, the World Bank will support the Fund for the Development of Renewable Energy (FODER, in its Spanish acronym) created to make available the financing of projects within the framework of the Program RenovAR. This initiative, promoted to comply with the stipulations set forth by Argentine Law No. 27191, encourages the generation of electricity through wind and solar technology, biomass, biogas, and small hydro-electric projects, aimed at “achieving a contribution of renewable energy sources up to 20% of the national electricity consumption, as of December 31, 2025”.
“This project encourages private investment in renewable energy that helps satisfy the growing demand of energy in the country with a clean source that strengthens sustainable development”, said Jesko Hentschel, World Bank Country Director for Argentina, Paraguay and Uruguay.
Of a total of 59 projects awarded to Rounds 1 and 1.5 of the Program RenovAR, 27 requested the guarantee of the World Bank, 12 of which are wind projects (721 MW), 10 of photovoltaic solar energy (306 MW), 4 small hydro-electric projects (4 MW) and 1 of biogas (1 MW).
The Finance Minister, Luis Caputo, as Argentine Governor before the World Bank, said that this guarantee “proves the confidence Argentina has achieved before multilateral credit organizations since the beginning of Macri’s Administration and the joint work of the National Ministry of Energy and Mining and the Ministry of Finance and the World Bank to achieve the objective of promoting renewable energy in the country”, and he added: “This guarantee is an example of the actual benefits for the Argentine people to achieve investment and financing for productive projects and for the development of infrastructure; in this case it is for a strategic area such as renewable energy”.