La Derecha Diario The government awards contracts worth USD 540 million to reduce power outages in summer.
State-of-the-art batteries will be installed at critical points to reduce power outages. The investment exceeds USD 540 million and will strengthen the system
The Government awarded the contracts for the "Alma-GBA" bidding process, aimed at incorporating electric energy storage systems in the Buenos Aires Metropolitan Area (AMBA), where nearly 40% of national consumption is concentrated. The investment exceeds USD 540 million and the awarded projects should be operational within 12 to 18 months.
The objective is to have batteries ready to inject energy into the system during times of scarcity, reducing the risk of blackouts while expanding generation capacity.
667 MW of awarded capacity
The bidding process achieved results above expectations: 667 MW of storage capacity were awarded, surpassing the initial target of 500 MW. According to the Energy Secretariat, the result was due to the high interest from the private sector and the competitiveness of the bids, which allowed for the addition of 150 extra MW.
In total, 15 companies participated, submitting 27 projects for more than 1,300 MW. The awarded contracts will be signed with Edenor, Edesur, and the Wholesale Electricity Market Administrator Company (CAMMESA), which will act as payment guarantor.
The first large-scale storage initiative in Argentina
"Alma-GBA represents the country's first large-scale storage experience, based on state-of-the-art battery systems (BESS)," official sources stated. These technologies will improve the reliability of the electrical system, reduce outages during demand peaks, lower marginal costs, and provide greater flexibility in energy dispatch.
Additionally, five projects that were not awarded due to price were invited to sign contracts under more competitive conditions, adding 222 extra MW.
A contingency plan in response to the lack of infrastructure
The measure is part of the 2024-2026 Contingency Plan, which seeks to strengthen electrical infrastructure and return to distributors an active role in direct contracting to improve service.
Energy Minister María Tettamanti acknowledged that the current installed capacity is insufficient to reliably cover consumption peaks. For this reason, she highlighted the need for remedial measures such as managing the scarce available supply, incentives for generators to maintain their older equipment, and new distribution rules.
Tariff adjustments and next steps
Meanwhile, the Government set a tariff increase for September of 2.97% for Edenor and 2.90% for Edesur, in order to adjust rates to the system's real costs.
With these measures, the Executive aims to mitigate the risks of power outages in AMBA, ensure a more reliable supply, and create a bridge toward a more robust energy infrastructure in the coming years.
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