Headline: Argentina Approves Landmark Solar Project Under New Investment Incentive Regime
Subheadline: The "El Quemado" project, located in Mendoza, is the first major investment approved under the newly established Régimen de Incentivo para Grandes Inversiones (RIGI).
Article:
The Argentine government has announced the approval of the first major investment under the recently instituted Régimen de Incentivo para Grandes Inversiones (RIGI), a new regulatory framework designed to boost large-scale investments in the country. The pioneering project is the "El Quemado" solar park, an ambitious initiative slated for construction in the Las Heras department of Mendoza province.
The decision, first hinted at by Economy Minister Luis Caputo before the holidays, was formalized this week with the publication of Resolution 1/2025 in the Official Gazette. The project, a joint venture between YPF Luz and local energy company EMESA, will be located approximately 13 kilometers from the town of Jocolí.
According to official sources, the "El Quemado" park will be situated in an area with high solar radiation, with an estimated capacity factor of 31.4%. In its initial phase, the project aims to install around 330,000 state-of-the-art bifacial solar panels spanning 350 hectares, with a total capacity of 200 MW. This suffices to power over 180,000 households annually and is expected to prevent the emission of more than 298,000 tons of carbon dioxide each year.
"The Government approved the first application for adhesion to RIGI: the ‘El Quemado’ Solar Park Project. It will be developed in Mendoza with an investment of over $211 million. God bless the Republic of Argentina."
commentator Manuel Adorni (@madorni) tweeted on January 8, 2025.
The initial investment for this project is estimated at $230 million, with generation of renewable energy slated to commence during the first half of 2026. In the park’s second phase, the partners aim to add an additional 105 MW, raising the total installed capacity to 305 MW.
The official resolution published in the Official Gazette approves the adhesion of ‘Luz del Campo SA’ to the RIGI, citing the ‘El Quemado’ and ‘Anexos’ project with a total installed capacity of 305 MW. It establishes December 16, 2024, as the adhesion date and mandates that the Vehicle of Unique Project (VPU) must invest at least 40% of the minimum investment amount within the first two years following the resolution’s notification. The Ministry of Economy has set January 30, 2027, as the deadline for the VPU to fulfill the minimum investment commitment.
Under the RIGI, approved investments gain tax breaks, exemptions on import duties, and access to dollars, enhancing their competitiveness in Argentina’s market. The government anticipates drawing over $54.3 billion in investments across various sectors within the next decade through these incentives.
Other notable projects awaiting approval under the RIGI include a $1 billion project by Minas Argentinas S.A. to expand gold production and construct a 50 MW solar park and a gas pipeline in San Juan. Additionally, Posco, a South Korean mining company, has proposed a $1 billion lithium production plant in Salta. Differing from these, Galan Lithium seeks to invest $200 million in producing lithium chloride in Catamarca. Before the end of 2025, a $255 million wind farm project in Olavarría, Buenos Aires, is anticipated to be approved, with PCR and Acindar as the principal driving forces.
With a focus on sustainability and renewable energy, Argentina’s RIGI is poised to catalyze significant investments and contribute to the country’s energy transformation, ultimately benefiting both the economy and the environment.
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Keywords: Argentina, Investment, RIGI, Renewable Energy, Solar Park, El Quemado.
