New era for energy SOEs

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Energy markets worldwide are undergoing constant regulatory revision driven by changes in technology: the growing presence of renewables and IT advances in network management. The old world of vertically integrated utilities with geographically fixed markets is rapidly vanishing. Deregulation in developing countries is also morphing into something new, and the old private-public dichotomy is being replaced by a marketplace where scaled-down state-owned enterprises (SOEs) compete side-by-side with private entrepreneurs. The presence of SOEs is important to the shape energy markets can take in developing countries and the long-term success of new investment and technologies. Insider's advantage The first thing that comes to ...

Argentina launches first round in renewables

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Yesterday, Argentina's president, Mauricio Macri, announced the much awaited renewable energy auction. Under the name of RenovAr, the program seeks to add 1 GW of energy from renewable sources in the coming years. On Thursday, the government published pre-bid documents for the first auction to take place in June. These documents do not spell out all of the terms for the auction, but clarify some important points, and open up the process to comments for potential participants. The final version of the auction terms will be published July 1 and bids will be due the 8 of August. The first auction of the ...

Renewable energy and the cost of lending in Latin America

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Investment in renewable energy (RE) is on a healthy growth trajectory despite the slump in the price of oil, with developing countries taking an every greater share of it. According to the Trends in Private Sector Climate Finance report published at the end of 2015 by the Climate Change Support Team of the United Nations, global investment in RE projects increased by 55% from 2009-2014, and over 70% of it went to non-OECD countries.  Another promising trend identified in the report is the decline in the perception of risk related to RE technologies, which is reducing the cost of financing and creating conditions for long-term and ...

Argentina: first call for new power

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After much talk about attracting investment, Argentina's government has set a date for its first electricity auction. The call for bids is aimed at covering electricity use during peak demand, in particular during summer months, and seeks to attract between 400 and 1,000 MW of combined-cycle thermal power. While the full technical specs will be not be available until May 9th, the Ministry of Energy has advanced the following details. Bids will be in dollars and will be targeted to specific periods, such as the summer 2016/17, winter 2017, etc. Winners will be signing contracts for 5 to 10 years with Cammesa, the wholesale agent, ...

Argentina: government seeks renewables

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Immediately following the vote in the Argentine Congress to approve the settlement of Argentina's foreign debt with the "holdouts", the Ministry of Energy published the much awaited regulations to the new law to promote renewable energy in the country. The president of Argentina, Mauricio Macri, along with his energy minister, Juan José Aranguren, will be traveling to the U.S. to promote investments in the country at the "Future of Energy Summit"in New York organized by Bloomberg New Energy Finance next week. This is a summary of the main points of Law 27191 and Decree 541/2016 (you can access the complete texts in ...

Transparency for Vaca Muerta

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A date has finally been set for YPF to make public the details of a deal it signed with Chevron to explore and develop the Vaca Muerta shale formation. A lower court judge, who had initially ruled in favor of YPF keeping the contract confidential on the grounds that it contained trade secrets, gave the state-owned oil company until February 22 to comply with a ruling by the Supreme Court of Argentina last November to turn over the information. Since it was signed in 2013, the deal between Chevron and YPF has been the subject of speculation and suspicion of secret clauses ...