Argentina has committed to becoming a carbon neutral country by 2050, which would be impossible if we did not move towards a decarbonized economy and sustainable energy model. This will require a coordinated effort among governments, producers, society, and the companies that use these resources, as well as a new way of thinking about their use. For this reason, the systematic application of the principles of Circular Economy in the new energy production model is a necessary and essential tool for achieving the country’s successful energy transition.
Within this framework, the National Government launched the National Renewable Cluster, a public-private collaborative body that looks to favor the production of goods, technologies, and services associated with the generation of electricity using renewable sources. This has the goal of leaving behind the sale of raw materials to industrialize them and produce the necessary goods in the country, with the development of a local value chain to accelerate the energy transition, the generation of an industry of knowledge, and the creation of jobs. The cluster will coordinate the national production supply and complementary areas existing in the country to manufacture the main goods such as air generators, air generator blades, solar panels, batteries and supplies for mini-hydro facilities, and inverse logistics for the recovery of components at the end of their life cycle.
For the development of local production chains, with the goal of reducing production and recirculation loops, the national green industry plan will be applied, which expects circular economy to address these challenges. Moreover, another point is to leverage Argentina’s potential for sourcing these necessary metals (primarily copper and lithium) but also to develop the local industry, within the framework of the cluster, to add value to metals and export technology, and not just raw materials.
The Ministry of Production has mentioned the need to develop innovations and industries that help supply the necessary materials for the energy transition in a way that is more sustainable for the environment and communities. Using, recycling, and reusing metals and materials may help guarantee the supply and potentially reduce waste, pollution, and CO2 emissions, minimizing the need for extraction and reducing the pressure over these critical materials.
The plan implies 750 MW of renewable generation over the next 2 years and 300 MW per year starting in 2024. Renewable energy generation implies the substitution of energy sources imported at around US$130 million annually and will allow for a reduction of 220 tons per year in CO2 emissions.
The estimated investment for the development and construction of Renewable Generation Parks will be approximately US$ 1 billion, with a national component of around 50%. This is expected to create 2,250 direct jobs and more than 4,000 indirect jobs and will impact 250 SMEs within its value chain.
The goal is to resume the design and development of solar, wind, and hydropower generation equipment at the national level.
The energy transition will require significant material resources at the global level and will generate large amounts of new types of waste, therefore this is a unique opportunity to get ahead of the game and develop a legal framework and industrial promotion to facilitate the application of the Circular Economy principles in this area and leverage the mining, industrial, and knowledge potential in the country to become positive players in this transition.