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Opportunities in the Temporary Power Market in Argentina

The election of President Mauricio Macri in Argentina not only signals the potential for improved quality of life for its citizens. The rise of a liberal-leaning politician to the highest executive office in Argentina also suggests a more stable macroeconomic environment. One sector exploring the possibilities is temporary power supply, as the neighboring country faces a significant energy deficit.
Index

The victory of President Mauricio Macri in Argentina not only signifies the prospect of improved quality of life for the citizens of that country.

The rise of a liberal-leaning politician to the highest office of the Argentine executive also represents a more stable macroeconomic scenario.

This stability brings the neighboring country back into the spotlight as a potential investment destination.

With the minimum guarantees that property rights and contractual clauses will be respected, foreign investors have more security to allocate resources, and, as a result, the country is expected to grow again.

Following this trend, there are Brazilian companies interested in investing resources in Argentina.

One of the sectors that has been considering the possibility is temporary energy supply, as the neighboring country has a significant energy deficit.

Thus, it is expected that with the improvement of the economic scenario of the neighboring country, the consequence will be an increase in consumption and, therefore, more demands for energy supply.

While increased consumption is positive, it can also lead to overloads on local supply networks.

Argentina’s infrastructure in this sector, which became outdated due to the prolonged recession and also due to the previous government’s interference, drove investors away.

For the country’s growth to be sustainable, a systemic view of the national electricity policy will be necessary.

New investments will come, but since the period between investment and the start of operations can be long, there is a need for an immediate solution, which may come in the form of temporary energy.

This supply is provided through diesel-powered generators and can meet, in addition to emergency demands, locations that cannot be served by the normal grid.

Some Brazilian suppliers are at the forefront of this market by developing technologies that allow for reduced logistical costs – with lighter generators – and creating more efficient equipment that consumes less fuel.

The reversal of the Argentine macroeconomic scenario could be the gateway for national manufacturers, who, once there, can begin to diversify their client portfolio and spread Brazilian technological achievements.

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