IFC and Central Puerto Partner on $600M Renewable Energy Transmission Line for Argentina’s Mining Sector

The studies will evaluate the technical, economic, and environmental feasibility of connecting mining sites in the Argentine Puna region to the Argentine Interconnection System (SADI).

The International Finance Corporation (IFC), part of the World Bank Group, and Central Puerto, Argentina's largest private electricity generator, have signed an agreement to advance feasibility studies for a groundbreaking renewable energy transmission project. The initiative aims to supply renewable power to mining operations in the Puna region of northwestern Argentina, while also delivering energy to nearby communities.

The studies will evaluate the technical, economic, and environmental feasibility of connecting mining sites in the Argentine Puna region to the Argentine Interconnection System (SADI). This interconnection will ensure a reliable supply of renewable energy through private-sector agreements, reinforcing Argentina’s commitment to sustainable development.

“At IFC, we seek to accelerate the global energy transition, and Argentina’s private sector has the potential to lead the way,” said Alfonso García Mora, IFC Vice President for Europe, Latin America, and the Caribbean. “This collaboration with Central Puerto prioritizes renewable energy and supports sustainable mining with critical infrastructure.”

Central Puerto’s CEO, Fernando Bonnet, highlighted the project’s strategic importance:

“Mining in northwestern Argentina is crucial for our country’s economic growth. With international markets demanding critical minerals for the energy transition, this project offers mining companies reliable, efficient, and economical energy solutions.”

Project Highlights

• Investment and Scale: Estimated at $600 million, the project includes constructing a 140-kilometer high-voltage transmission line originating at the Puna Transformer Station. It will have a capacity of up to 400 MW, powered primarily by renewable sources.
• Community Impact: Beyond supporting mining operations, the project will bring consistent electricity to isolated communities near the infrastructure, improving quality of life and enabling local economic development.
• Strategic Potential: Mining contributes just 0.7% to Argentina’s GDP, significantly less than the 8% to 10% seen in regional peers like Chile and Peru. By addressing energy challenges, the project aims to boost Argentina’s mining sector, closing the gap and positioning the country as a leader in sustainable mineral extraction.

Supporting Argentina’s Energy and Economic Goals

The transmission line aligns with Argentina’s broader objectives of energy diversification, renewable energy adoption, and sustainable growth. The collaboration builds on previous successful partnerships between IFC and Central Puerto under the RenovAR and MATER programs, which financed renewable energy projects.

Future Impact

The project not only strengthens mining competitiveness but also sets the stage for long-term power purchase agreements (PPAs) that secure reliable energy supplies for industrial and community use. It also paves the way for transforming northwestern Argentina into a hub for renewable energy and sustainable mining, contributing to national and regional economic development.

A Vision for Sustainability

This joint effort between IFC and Central Puerto underscores their shared vision of advancing Argentina’s renewable energy capabilities while addressing the global demand for critical minerals essential for the energy transition. The project promises to improve infrastructure, drive sustainable economic growth, and enhance Argentina’s position in the global renewable energy and mining sectors.