阿根廷氫能洞察-12 Insights on Hydrogen – Argentina Edition

12InsightsonHydrogen–

ArgentinaEdition

IMPULSE

12Insightson

Hydrogen–

ArgentinaEdition

PUBLICATIONDETAILS

IMPULSE

12InsightsonHydrogen–ArgentinaEdition

WRITTENBY

AgoraEnergiewende

www.agora-energiewende.de

info@agora-energiewende.de

AgoraIndustry

info@agora-industrie.de

Anna-Louisa-Karsch-Stra?e2

10178Berlin|Germany

P+49(0)307001435-000

FundaciónTorcuatoDiTella

Esmeralda1376|1007CiudadAutónomadeBuenosAires,Argentina

T+541151697000

http://ftdt.cc

mc@

PROJECTMANAGEMENT

FabianBarrera

fabian.barrera@agora-energiewende.de

AUTHORS

FabianBarrera(AgoraEnergiewende);

LucianoCaratori,MicaelaCarlino,HernánCarlino(allFundaciónTorcuatodiTella)

Typesetting:KarlElserDruckGmbH

Proofreading:WordSolid

Titlepicture:BrunoDeReggeIUnsplash

ThisworkislicensedunderCCBY-NC-SA4.0.

ACKNOWLEDGEMENTS/MISCELLANEOUS

Wewishtothankthefollowingcolleaguesfortheircontributionsinvariousways:MatthiasDeutsch,LeandroJanke,ZaffarHussain,CamillaOliveira,Emir?olak(allAgoraEnergiewende).

WealsowishtothankthePtXHubpartnersfortheircontributionsandreviews:VeronicaChorkulak,StephanRemler,ClaudiaIlting,ManuelAndresh,SoniaRueda,NellyEisenbach(allGIZ);NationaldirectionofscenariosandevaluationofenergyprojectsbytheUndersecretaryofenergyplanningattheSecretariatofEnergyofArgentina,LuisaLopez(DECHEMA),RaulBertero(CEARE)

TheInternationalPower-to-XHubisimplementedbytheDeutscheGesellschaftfürInternationaleZusammenarbeit(GIZ)GmbHonbehalfoftheGermanFederalMinistryforEconomicAffairsandClimateAction(BMWK).FinancedbytheInter-nationalClimateInitiative(InternationaleKlima-schutzinitiative,IKI),thePtXHubisacontributiontotheGermanNationalHydrogenStrategyof2020andrepresentsoneofthefourpillarsoftheBMUV’sPtXactionprogrammeinitiatedin2019.

294/02-I-2023/EN

Version1.1,June2023

Thispublicationisavailablefor

downloadunderthisscancode.

Pleaseciteas:

AgoraEnergiewende,AgoraIndustry,

FundaciónTorcuatoDiTella(2023):

12InsightsonHydrogen–ArgentinaEdition

3

Preface

Dearreader,

Theroleofrenewablehydrogenisgettingmoreandmoreattentionintheglobalpursuitofclimateneutrality.Thetradingpotentialofhydrogenanditsderivatives,combinedwiththeimportantsocialandeconomicbenefitsofahydrogeneconomy,isbringingnewplayersintothehydrogengame.Inaddition,theglobalfossilfuelcrisishasunderlinedtheneedfornewenergysuppliersandamorediverseindustrialmarket,shiftingthespotlightonrenewable-richcountries.

Argentinahasvastenergyresourcesthatpositionitasoneofthepotentialfutureexportersofrenew-ablehydrogenandPower-to-X(PtX)products.However,whenembarkingontheroadtobecomingoneoftheworld’shydrogenhubs,certainaspects

needtobecarefullyanalysed.Energyinfrastructuredevelopment,theuseofnaturalgas,certification,andinvestmentneedsareamongthehottopicscurrentlybeingdiscussedatthenationallevel.

Thisbriefstudyaimstocontributetothediscussionontheprioritiesandnextstepsthatarepartofthedecision-makingprocesstomaximisethelocalbene-fitsofscalinguprenewablehydrogenproductioninArgentina.Wealsohighlightthesignificantcontri-butiontotheglobaldecarbonisationthatthecountry’spotentialexportofgreenproductscanmake.

Iwishyouapleasantandinformativeread.

Yourssincerely,

FrankPeter

Director,AgoraIndustry

Keyfindingsataglance:

1

Renewablehydrogenwillbecrucialforreachingclimateneutrality;however,itshouldbereservedforapplicationswheredirectelectrificationisnotpossible.Argentina’snationalhydrogenstrategy,currentlybeingdrafted,shouldprioritisetheuseofhydrogeninkeysectorssuchasindustry,ship-ping,andaviation,andinprovidingflexibilitytoarenewable-basedpowersystem.Forotherusecases,directelectrificationisusuallymoreeconomicandefficient.

2

Argentinaiswell-positionedtobecomeamajorglobalproducerofhydrogenduetoitsvastenergypotential.Argentina’srenewableenergyresourcescanproducecheapelectricitythatcanbecon-vertedintorenewablehydrogen.Naturalgaswithcarboncaptureandstoragecouldbeusedasabridgetechnologybutshouldbeswitchedtorenewablehydrogenassoonaspossible.

3

DevelopingarenewablehydrogeneconomycanhelpdecarboniseArgentina’sindustryandcreateimportantsocio-economicbenefitstothecountry.Hydrogencanenabletheproductionofgreenproductswithahighexportdemandpotential,suchasammonia,fertilisers,andsyntheticfuels.Scalinguptheproductionoftheseproductswouldstimulatesustainableindustrialgrowthandcontributetoeconomicdiversificationandjobcreation.

4

InternationalcooperationcouldstrengthentheArgentinianrenewablehydrogeneconomyandthusboostglobaldecarbonisation.RenewablehydrogenproductioninArgentinacangreatlybenefitglobaldecarbonisationanditwouldthereforebeintheinterestoftheinternationalcommunitytosupporttheexpansionofthecountry’sinfrastructureandindustrialdevelopment.RegionalcooperationwouldalsostrengthenLatinAmerica'spositionashydrogenproducerininternationalforaonstandardsandtrade.

4

Contents

HydrogenasadecarbonisationdriverforArgentina5

12InsightsonHydrogenforArgentina9

1.Diversifyingtheenergymatrixwithrenewableenergywillunlock

Argentina’shydrogenpotential9

2.Theroleofhydrogenforclimateneutralityiscrucialbutsecondarytodirect

electrification1

4

3.Energyinfrastructureshouldbeprioritised,andhydrogenproductionshould

beincludedinlong-termdevelopmentplans1

7

4.ArgentinahasthepotentialtobecomeakeyglobalexporterofPtXproducts;

itmustensurethatproductionisaccompaniedbythedecarbonisationof

domestichydrogendemand

20

5.Thepotentialfuturemarketforhydrogenvehiclesisshrinkingdaily2

2

6.Argentina’sbioenergyindustrycansignificantlycontributetoitsPtXmarket2

5

7.Argentinashouldcontemplateitsroleinglobaltradetoensurethe

competitivenessofitsexportstoEuropeanandAsian-Pacificmarkets

2

7

8.Thehydrogenindustryneedstobecompetitiveandestablishstandardsthat

areinlinewithglobaltradeandindustryrequirements

30

9.Fossil-basedhydrogenwithcarboncaptureandstorage(CCS)canserveas

abridgetechnologybutwillbeoutcompetedbyrenewablehydrogen

32

10.Argentinacanidentifypotentiallocationsforinitialhydrogenhubsbymapping

complementaryresourcesandlocaleconomiesintheprovinces3

6

11.Argentinashouldcreateaclearpolicyframeworkforhydrogenproduction,

developadequateconditionstoattractinvestors,andregardhydrogenasan

energyandclimateissuewhenconsideringaccesstofinancinginstruments3

8

12.PromotingR&Dandincentivisinginternationalcooperationcanaccelerate

hydrogenproduction

41

5

[MMtep]

Oil32%

Natural

gas

52%

IMPULSE|12InsightsonHydrogen–ArgentinaEdition

HydrogenasadecarbonisationdriverforArgentina

AnoverviewofArgentina’s

energycontext

Argentinaischaracterisedbyadiversearrayofenergyresources.Ithasoneoftheworld’slargestunconventionalgasandoilreserves,mostofwhicharelocatedintheNeuquénBasin’sVacaMuertafield.Naturalgasisthecountry’smainenergysource(seeFigure1).However,Argentinaisanattractivemarketforcleanenergyduetoitsvastavailabilityofrenew-ableenergyresources.

Argentina’senergymatrixislargelydominatedbyhydrocarbons,accountingfor85percentofthecountry’stotalprimaryenergysupply,followedby

nuclearandrenewables(includinghydro,solar,windandbioenergy)(seeFigure1).Thisheavyrelianceonfossilfuelsisalsoreflectedinthecountry’spowersupply,wherenaturalgasaccountsformorethan60percentofpowergeneration.Nuclearenergyisalsoanimportantenergysource,positioningthecountrytofurtherexploreitsuse.Renewableenergy,especiallyhydropower,playsalargeroleinthecountry’selectricityproduction.(seeFigure1).Otherrelevantrenewableenergysourcesinthecountryincludewind,solarPV,andbioenergy.Itisimportanttonotethat,despitetheabundanceofenergyresourcesinthecountry,duringthewintermonthsthelocalnaturalgassupplydoesnotcoverdomesticconsumption,and

PrimaryenergysupplyandpowergenerationinArgentina,2021Figure1

Variable

RenewableEnergy

2%

Coal1%

Others1%

Biofuels3%

Biomass3%

Hydro3%

Nuclear

4%

74.3

Smallhydro7%

Other6%

Solar13%

Wind

74%

Other

Nuclear

7.2%

renewables

12.3%

142.6

[TWh]

Natural

gas

82%

Hydro

17%

Thermal

63.5%

Coal

3%

Diesel

10%

FuelOil

4%

AgoraEnergiewende,AgoraIndustryandFundaciónTorcuatodiTella(2023)basedonCAMMESA(2022)

AgoraIndustry|12InsightsonHydrogen–ArgentinaEdition

6

thereforeLNG,diesel,andfueloilimportsare

requiredtomeetfullelectricitydemand.

Argentinahaspromotedrenewableenergyuseinpowergenerationformorethanadecade.In2015,thecountrysetcleartargetsforrenewableenergyinpowergeneration.Itwasthefirststepinaseriesofprogrammesthatprovideincentivesandbenefitsforrenewablesgeneration,includingdistributedgenera-tionforprivateusers.Thissetofpoliciesandregula-tionsincreasedtheinstalledcapacityofrenewableenergyby4349MWbetween2015andthefirsthalfof2022.Intermsofelectricitygeneration,theshareofrenewableenergyincreasedfromlessthan2to14percent.

Today,Argentina'senergytransmissioninfrastruc-ture,incombinationwithmacroeconomicfactors,1placesmajorconstraintsonthedevelopmentoftherenewableenergymarket.Theresulthasbeenamodestexpansionofrenewableandnon-renewablepowergeneration.

Theimportanceofhydrogen

Argentina’senergyresourcesmakethecountryveryattractiveforbothfossil-basedandrenewablehydrogenproduction.Fossil-basedhydrogenwithcarboncaptureandstorage(CCS)isapossibletransitiontechnology,butpolicymakersshouldcarefullyconsidertherisksofmethaneleakageandthepotentialforstrandedassetsgiventheglobalappetiteforrenewablehydrogenandPower-to-X(PtX)products.Asthehydrogenmarketbecomesmoreestablishedoverthecomingyears,conditionsmayimprove,settingupArgentinatobecomea

1Overthepastdecades,Argentinahasbeenaffectedbysignificanteconomicfluctuationsandmacroeconomicimbalancesthathavelimitedeconomicgrowth.Thishastakenatolloninfrastructureandotherstrategicsector,creatingsignificantchallengesforinfrastructureinvestmentandplanning,andhaveaffectedinvestorconfidence.

competitiveproducerofhydrogenandotherPtXproducts.2

Argentina’srenewableenergyconditionsareoptimalforrenewablehydrogengeneration.Forinstance,estimationsoffull-loadhours3(akeyfactorforrenewablehydrogenproduction)puttheweightedaverageofthecapacityfactorforwindpowerat

47percentin2021(4149full-loadhours).Inthesameyear,solarPVhadacapacityfactorof29percent

(2541full-loadhours)(CAMMESA,2022).However,thecapacityfactorforwindandsolarPVpowerplantsisunevenlydistributedacrossthecountry’svastterritory.PatagoniaandBuenosAiresleadinwindpower(eachwitharound50percentor4300hours/year),whileCuyoshowsthebestresultsforsolarPV(31percent,or2650full-loadhours/year).

Inaddition,theavailabilityoflandinArgentinaisalsoanimportantadvantagefortheproductionofhydrogen.ThisisevenmoresignificantinthePatagoniaregion,whichhasimportantenergyresourcesandalowpopulationdensity.Newenergyandhydrogenprojectswouldhavelessimpactonthelocalpopulationandencounterlessopposition.However,allprojectsshouldguaranteeacomprehen-siveEconomic,Environmental,Social,andGovern-ance(EESG)frameworktomitigatenegativelocalimpacts.TheavailabilityoflandincreasesArgenti-

2UndertheumbrellaofthePtXHub,AgoraEnergiewendeincollaborationwith?koInstituthasdevelopedtheBusinessOpportunityAnalyser(BOA),aninteractivetoolthatpromotestheexportofarangeofPtXmoleculessuchasgreenammonia,e-methanol,syntheticfuels,etc.ThetoolenablesuserstocalculatethedeliveredcostofPtXmoleculesfromanexportcountrytoanimportcountry,highlightingthecompetitiveedgeofonecountryagainstanother.ArgentinaisoneofthedeepdivecountriesinBOA.Thatis,thetoolprovidesmoredetailinformationandlocaldatatoobtainprefeasibilityinformationinthetradeofPtXproductsfromthecountry.

3Estimationsaremadebasedondatafrom99powergen-erationplantswithatotalinstalledcapacityof4367MWforthe2019–2021period.

IMPULSE|12InsightsonHydrogen–ArgentinaEdition

7

Demand2050[MtH?]

Finalenergyshare

na’shydrogenpotential,especiallywhencomparedwithEuropeancountries.

Globalhydrogendemand

HydrogenuseinLatinAmericacorrespondsonlytoaround5percentofglobalhydrogendemand(IEA,2021),whichreached94Mtin2021(IEA,2022).ArgentinaisoneofthetopsixhydrogenconsumersinLatinAmerica,usingaround350ktin2019.HydrogeninArgentinaismostlyusedforindustrialhydrogenapplicationssuchasoilrefiningandtheproductionofammonia,methanolanddirectreducediron(DRI)(IEA,2021).Givenitswidespreadhydrogenuseandrenewablehydrogenpotential,Argentinacouldbeakeyplayerinsupportingglobaldecarbonisation.

Globalhydrogendemandisexpectedtokeepgrowinginviewofitsrolealongtheentireenergychain.AsshowninFigure2,variousglobalenergyscenariosestimatethehydrogendemandtoreach

morethan600Mtin2050.Mostoftheglobalenergyscenariosagreethathydrogendemandwillbedrivenbythedecarbonisationofhard-to-abateapplicationsinindustryandtransport(mostlyaviationandshipping).Hydrogenuseinthepowersectorwillmostlygotowardsstorageapplicationsthatfurtherintegratevariablerenewableenergyintothesystem.Buthydrogendemandinthepowersectoristhemostdifficulttoforecastsincethetechnologylandscapeisevenmorecomplicatedthantheavailableoptionsfortheheatandtransportsectors.However,hydrogenmaybemorescalablethananyothertechnologygivenitsmanyapplica-tionsoutsidethepowersector.

Somecountrieswithgreaterhydrogendemandarelikelytobeunabletomeettheirowndomesticdemandforlow-carbonhydrogen.Inthesecases,renewable-richcountrieslikeArgentinacanplayakeyroleinsupplyingrenewablehydrogentobigdemandcentres.Forinstance,inlinewithGerma-ny’sambitionstoachieveclimateneutralityby2045,itisestimatedthatthecountry’shydrogen

Estimatesofglobalhydrogendemandin2050byselectedscenariosFigure2

1200

1000

800

600

400

200

0

HydrogenIRENA1.5ETC

Council

IndustryTransportPower

Industry

Transport

Power

Building

heat

0100200300400500600

Variability[MtH?]

BuildingheatFinalenergy

AgoraEnergiewendeandAgoraIndustry(2021).Note:Finalenergydoesnotincludefeedstocksandothernon-energyuse;ETC=EnergyTransitionCommission;BNEF=BloombergNEF;IRENA=InternationalRenewableEnergyAgency;IEA=InternationalEnergyAgency.Finalenergy?gurestakenfromrespectivesources.

30%

25%

20%

15%

10%

5%

0%

BNEF

Green

Climate

IEA

Net

zero

AgoraIndustry|12InsightsonHydrogen–ArgentinaEdition

8

demandwillreach1.9MtH?by2030and7.9MtH?by20454(Prognos,?ko-Institut,WuppertalInstitut,2021).However,Germanywouldneedtoimportmorethantwo-thirdsofitshydrogendemand,mak-ingitoneofthemostimportantPtXimportmarketsintheEU.

Argentina’sroleinthecurrentglobalenergycrisis

Globalfossil-fuelpriceshaverisenrapidlysince2021.ThesituationhasbecomeevenmorecriticalsinceRussia'sfull-scaleinvasionofUkraine,whichhashadamajorimpactonnaturalgaspricesandhashelpedtriggeraglobaleconomicrecessionthathasbeenmarkedbyhighinflationanddecliningfoodandenergysecurity.TheimpactinEuropehasbeensevere:thepriceofnaturalgashasreachedrecord

4Originalvaluescorrespondto63TWhby2030and

265TWhby2045.Calculationbasedonlowheatingvalue(LHV)forhydrogenof33.3kWh/kg

pricesupto70USDpermmbtu,creatinguncertaintyintheregion’senergysupplyandaffectingtheglobalnaturalgasandLNGsupplychain.Highnaturalgaspricesarealsohurtingtheindustrialsector.Euro-peancompaniesarewonderingwhethertohaltoperations,andcertaincommoditiesmanufacturedfromnaturalgassuchasammoniaandsteelreachedrecordpricesin2022.Forinstance,globalfertiliser

priceshavetripledsincemid-2020.Thiswillhaveasustainedimpactonglobalagriculturalproduction(IEA,2022b).

Argentina’sabundantenergyresourcesprovidethecountrywithauniqueopportunitytobecomeakeyplayerinaddressingtheglobalenergycrisis.Argen-tinacancontributetothediversificationoftheglobalsupplychainforfertilisersandotherPtXproductswhilealsoalleviatingpressureonnaturalgasroutesaffectedbytheinvasionofUkraine.Inthisway,Argentina’srenewableandfossil-energyresourcescanmakeasignificantcontributiontoaddressingtheglobalenergycrisis,whilepositioningthecountryasaglobalhubforPtXproducts.

9

[USD/MWh]

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022e

IMPULSE|12InsightsonHydrogen–ArgentinaEdition

12InsightsonHydrogenforArgentina

DiversifyingtheenergymatrixwithrenewableenergywillunlockArgentina’shydrogenpotential

1

Argentinahaslargeuntappedenergyresourcescapableoffulfillingthecoun-try’senergyneeds

Renewableenergycanmitigatethecountry’sdependenceonfossilfuelsandopenupopportunitiestodevelopamoresustainableindustrialsectorandmoreproductioncapacityforrenewablehydrogenandPtXproducts.EnergyandpowergenerationinArgentinaisheavilydominatedbyfossilfuels,withnaturalgasplayingacriticalrole.However,thecurrentinfrastructuredoesnotallowthecountrytofullyutiliseitsresources.Forinstance,thecountrymustimportLNG,diesel,andfueloilduringthewintermonthswhenenergydemandishigh.Figure3

showsArgentina’senergytradebalance.Itcanbeseenthatenergyimportsarestillasignificantcostforthecountry.Argentinacanstrengthenitsenergysecuritybydiversifyingitsenergymatrixsothatagreatervarietyofsourcesisavailabletomeetenergydemand.

EstimatesputthetotalgrossresourcepotentialofArgentina’ssolarPV,wind,hydro,andgeothermalenergyat29000TWh/year,ledbysolarPV(57per-cent)andwindpower(42percent)(IDB,2017).Like-wise,IRENA’sestimatesofArgentina’srenewableenergypotentialcomparedtotheglobalaverageplaceitatthehighendforsolarandwind(IRENA,2022b).Thecountry’suntappedpotentialforrenewablescan

Argentina'senergytradebalance

Figure3

10000

5000

0

-5000

-10000

-15000

Exports(CIF)Imports(CIF)

Balance(Exports-Imports)

AgoraEnergiewende,AgoraIndustryandFundaciónTorcuatodiTella(2023)basedonINDEC(2023)

AgoraIndustry|12InsightsonHydrogen–ArgentinaEdition

10

[USD/MWh]

significantlyhelpmeetrisingenergydemandamidincreasinglevelsofelectrificationandrenewablehydrogenproduction.

FurtherREdevelopmentcanbring

importantbenefitstothecountry

RenewableenergydevelopmentinArgentinacanenhanceenergysecurityanddecreasetheneedforelectricitysubsidies.Forone,renewableenergycanhelptomitigatetheimpactoffuelpricesontotalsystemcosts–themaincontributortoelectricitypricesinArgentina,asshowninFigure4.Areductionintheelectricitypricewouldreducethegapcoveredbysubisidies,mitigatingthispublicexpense.Addi-tonally,itwouldprovidetheindustrialsectorwith

lowerelectricityprices,facilitatingelectrificationanddecarbonisation.

In2021,electricitysubsidiestobridgethegapbet-weenhouseholdtariffsandsystemcostsamountedto1.8percentofArgentina’sGDP,withelectricitytariffsforhouseholdscoveringonly37percentoftotalsystemcosts(CAMMESA,2021).Subsidylevelsareexpectedtobelargerin2022giventheglobalcrisisinfossil-fuelprices.Thegapbetweentariffsandtotalsystemcostsislikelytoincreaseduetothedepend-encyofelectricitypricesonfuelcostsandtovolatileforeignexchangerates(mainlybetweentheUSdollarandtheArgentinianpeso).Powerpurchaseagree-ments(PPA)withsomegeneratorsinArgentinaareinUSdollars.Likewise,thecostsofdomesticnaturalgasandimportedfuels(LNGandliquidfossilfuels)are

SummaryofsystemcostsforpowergenerationinArgentinaFigure4

HydrobaseNuclearThermalspotThermalPPAsRenewablePPAsTransmission

FuelsImports

AgoraEnergiewende,AgoraIndustryandFundaciónTorcuatodiTella(2023)basedonCaratori(2022)

100

90

80

70

60

50

40

30

20

10

0

89.4

+23%

4.3

72.50.3

+22%

0.446.4

32.2

2.11.7

6.6

8.8

9.7

13.912.0

8.68.39.1

3.8

4.1

3.6

3.6

2.6

3.6

2022

2020

2021

59.6

18.9

15.2

1.8

IMPULSE|12InsightsonHydrogen–ArgentinaEdition

11

Infobox1:Mitigatingcarbonemissions–Argentina’sclimatecommitments

ArgentinaratifiedtheParisAgreementinSeptember2016,obligatingittoprepareandcommunicateNationallyDeterminedContributions(NDCs).TherevisedNDCsubmittedbyArgentinain2021raisedthecountry’sambition.Thenewtargetistokeepnetemissionsbelow349MtCO?eby2030.Thisis26percentlowercomparedtotheNDCsubmittedin2017(483MtCO?eby2030).Additionally,Argentinahascommit-teditselftomakeeffortstoachievenet-zeroemissionsby2050.

Theenergysectoristhelargestcontributorofcarbonemissions,makingupmorethanhalf(51percent)ofArgentina’stotalGHGemissions(energygeneration,consumptionandfugitiveemissions).Mostoftheenergy-sectoremissionsariseprimarilyfromthecombustionoffossilfuels.Thesecondlargestcontribu-tortoArgentina’semissionsisagriculture,forestryandotherlanduse(AFOLU;39percent),followedbyindustrialprocessesandproductuse(IPPU;6percent).Theremaining4percentcomesfromlandfillemissions.

Source:MAyDS,2022

alsotransactedinUSDdollars.Thecrisisinglobalfossil-fuelpricesandtheeffectofclimatechangeonArgentina’shydrogenerationhavefurtherexacer-batedtheproblem,especiallyduringwintermonths.InJuly2022,totalsystemcostsincreasedby75per-cent.Forindustry,thesituationiscriticalaswell.Thesectordoesnotreceivesubsidiestodefrayelectricitycosts,soindustrialusersmustfullycoverincreasesintotalsystemcosts.Greaterpenetrationbyrenewablescouldreducetotalsystemcostsbyreducingfuelconsumption.ItcouldalsoreducetheaveragecostofgenerationasrenewablePPAsaresignedbelowaveragesystemcosts.

Decarbonisingtheenergysectorwillrequiretheuseofotherlow-carbontechnologies

Argentinacouldadoptaseriesofstrategiestoreduceitsdependenceonfossilfuelsandtolowerenergy-sectoremissionsinlinewithitsclimateagreementsanditsambitionofachievingnetzeroby2050.Thiswouldalsocontribut