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Subject

Renewable energy.

Significance

On July 25, the Energy Ministry launched a tender to award contracts for up to 1,000 megawatts to supply renewable energy to CAMMESA, the state-owned wholesale electricity market administrator. The Renewable Energy Promotion bill approved last year sets ambitious targets, calling for 8% of electricity to come from renewable sources by 2017, gradually increasing to 20% by 2025.

Impacts

Drops in international oil prices will likely delay development of the Vaca Muerta unconventional hydrocarbons reservoir.

This may encourage the authorities to look at renewable energy to meet expected short-term increases in demand.

Renewable energy chamber CADER claims that 3,000 megawatts of renewable capacity could be added within two years, with proper incentives.

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