Argentina grants fiscal incentives to two solar module factory projects

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The government of the Argentinean province of Mendoza has announced that the program Programa de Fomento a la Inversión Estratégica, which was promoted by the central government of Argentina through the Decree 539/2017 and aims to stimulate the realization of investments that result in an increase of the competitiveness of local industries, has selected three projects linked to the development of the PV sector in the province.

According to the provincial government, the three projects, together with another project for the installation of solar collectors, will require an aggregate investment of ARS 405.5 million ($23.2 million) and will guarantee the creation of 167 jobs. The tax benefit for the four initiatives is estimated at around ARS 200 million ($11.6 million).

The three solar-related projects are for two panel factories and a solar power plant of 5 MW. One of the two factories will be built by Servicios Tecnológicos Metalmecánicos SA in the north of the province thanks to an investment of ARS 65.5 million ($3.8 million), while a second production plant, planned in the south of Mendoza, will be carried out by PVS Argentina SRL. The company wants to invest ARS 187.7 million ($10.9 million) in the project and create 52 jobs. More details on the two factories and the two companies were not provided.

The third project, located in the department of San Rafael, is for the installation of a 5 MW solar plant for self-consumption by Helios Río Diamante SA. The planned investment is ARS 73.4 million ($4.2 million).

In January, the government of the province of Mendoza announced that six photovoltaic projects located in its territory would obtain funding from Banco Nación in the frame of a program to promote renewable energy investments through the Argentinean Economic Development Fund (Fondear). These are all projects that were selected in the 1.5 bid round of the program RenovAr last November and must rely on 85% of locally manufactured PV components. The projects were proposed by Canadian investors S2E Tech and Potencia Corp.

In 2016, more than 900 megawatts in PV projects were awarded in the rounds 1 and 1.5 of Argentina’s renewable energy program for large-scale projects. A large part of the awarded volume is located in the provinces of the north and west of the country that have a high solar resource, among which is Mendoza.

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