Central Puerto, IFC Drive develop first sustainable power line in Argentina

Central Puerto, Argentina's leading electricity generator, and the International Finance Corporation (IFC), a member of the World Bank Group, announced the signing of an agreement to advance feasibility studies for the first electricity transmission lineto supply renewable energy to mining companies in northwestern Argentina.

These studies will evaluate the technical, economic and environmental feasibility of the project, which aims to interconnect mining projects in the Argentine Puna sector to the Argentine Interconnection System (SADI), guaranteeing a reliable supply of renewable energy through private agreements.

"Mining in northwestern Argentina is a strategic sector for the economic growth of our country. In the face of an increasingly demanding international market for critical minerals, essential for the energy transition, this project responds to the need of mining companies to improve their competitiveness through reliable, efficient and economical energy solutions," said Fernando Bonnet, CEO of Central Puerto.

"At IFC we seek to accelerate the global energy transition and the private sector in Argentina has the potential to be a leader in the industry. The collaborative work with Central Puerto adds to these efforts by prioritizing renewable energies and supporting the sustainable mining industry with the necessary infrastructure to also reach its full potential," said Alfonso García Mora, IFC's VP for Europe, Latin America and the Caribbean.

With an estimated total investment of US$600 million,the Central Puerto initiative contemplates the construction of a high-voltage line (LAT) of approximately 140 kmoriginating in the Puna Transformer Station (ET). The project foresees a potential capacity of up to 400 MWoffering mainly competitive energy supply of renewable origin.

The new infrastructure will not only benefit the mining industry but will also supply communities near the areas of influence of the installation of this new transmission line, which are currently isolated. This constant energy supply will contribute to the development of these communities, improving their quality of life and promoting their growth.

In addition to strengthening the competitiveness of the mining industry, this project has the potential to boost both regional and national economic development. Currently, mining represents only 0.7% of Argentina's GDP, well below the 8% to 10% it reaches in countries such as Chile and Peru. This effort not only seeks to close that gap, but also to position Argentina as a leader in the transition to a more sustainable economy.

The joint effort of Central Puerto and IFC seeks to transform northwestern Argentina into a key hub for renewable energy generation and sustainable mining, contributing to the country's economic growth and competitive positioning on the global stage.

Learn more about Central Puerto at the company’s website.