China-bound renewable energy collaboration faces potential termination due to Argentine government intervening
Argentina's renewable energy sector has seen significant growth in recent years, with Chinese companies playing a central role in this expansion.
According to researcher Oriana Cherini in international relations, Chinese investment in renewable energy in Argentina has shown constant growth and diversification. Companies like PowerChina and Envision have developed wind and solar projects in various provinces, with initial cooperation promoted at the federal level and coordinated through Argentina's adherence to the Belt and Road Initiative.
One of the most notable Chinese investments is the Loma Blanca wind farms in the province of Chubut, which have a total installed capacity of 355 MW. These projects were built by PowerChina and operated by the Chinese company Goldwind. Another significant project is the Cauchari solar park in the province of Jujuy, with an initial installed capacity of 312 MW and the potential to be expanded to 500 MW. This park was mainly financed by the China Export-Import Bank and built by PowerChina, Shanghai Electric Construction, and Talesun.
The Argentine government, until 2023, played a facilitating role in relations with China, but now the provinces are taking the initiative. This shift can be attributed to the approximation of President Javier Milei with the United States.
Law 27.191 of 2015 established benefits to ensure that renewable sources meet 20% of Argentina's electricity demand by the end of 2025. As of the first four months of 2025, the share of renewable energy in Argentina's electricity matrix reached 17.2%.
However, the expiration of legal incentives for renewable energy next year is a major concern in the sector. There is strong pressure to extend the 2015 law to maintain the target of 20% renewable sources in electricity demand, with legal and fiscal protections for investors.
The lack of transmission infrastructure in Argentina is a central challenge for the expansion of renewable energy. The government has presented a plan for the private sector to finance 16 priority transmission projects to address this issue.
A positive development is the upcoming operation of Argentina's first national factory for producing solar panels, expected later this year.
The partnership between Argentina and China is under scrutiny due to geopolitical and economic changes, including alignment with the United States, cuts to Argentina's public infrastructure budget since 2024, and global trade tensions. Despite these challenges, the maturation of the Belt and Road Initiative may contribute to Chinese companies' ability to manage projects independently.
In conclusion, Chinese companies have been instrumental in the expansion of Argentina's renewable energy infrastructure over the last decade. As the country continues to navigate geopolitical and economic changes, the future of this partnership remains an interesting development to watch.
