Argentina has successfully concluded its first battery energy storage system tender, awarding 667 MW of capacity – around 30% more than the originally planned 500 MW – due to strong industry interest and competitive pricing, with an additional 222 MW to bidders willing to match the highest awarded price.
The Ministry of Economy's Energy Secretariat announced that 15 companies submitted 27 proposals totaling 1,347 MW battery energy storage system. Awarded contracts were granted to the distribution companies Edenor and Edesur, with CAMMESA (Wholesale Electricity Market Administration Company) acting as the payment guarantor.
Contract prices range from $10,161 to $12,815 per MW-month, with total expected investment exceeding $540 million. CAMMESA's specifications had set a reference price of $15,000/MW/month, but most bids came in well below that level. The government had established an award threshold at 94% of the reference price – around $14,100/MW/month – but exceptionally competitive bids led to an expansion of the award capacity.
All awarded projects are expected to become operational within 12 to 18 months.
In a further move, the Energy Secretariat is inviting five non-awarded but technically qualified projects, representing 222 MW, to sign contracts at a fixed price of $12,591 per MW-month – below their original bids. These projects face no network constraints and could still be added to the tender if developers accept the offer within five business days, by submitting written confirmation to CAMMESA.
