According to the report analysis, ‘Argentina Power Market Outlook to 2030, Update 2018 – Market Trends, Regulations, and Competitive Landscape’ states that there are two major companies which are working in this domain more actively for making the market more competitive and attaining the highest share includes The AES Corporation and Pampa Energia SA. The report also provide the company overview, business description and SWOT overview. Moreover, the transmission and distribution sectors are highly regulated and mush less competitive then generation in this sector as the generation results in a competitive and most opened market and owned by the private utilities. The better access of financing in this sector of Argentina and a general advancement in the business surroundings is expected to advantageous for the country’s power sector in the forecasted period.
The electricity segment in Argentina establishes the third highest power industry in the overall Latin America. It mostly depend on the thermal generation and hydropower generation. Whereas, the electricity segment in Argentina is almost completely unbundled with the huge number of generation, transmission and distribution companies. On the basis of competition, the wholesale electricity market in Argentina is highly competitive, with a growing participation of deregulated retail consumers. Moreover, in the monopoly sector, such as transmission and distribution, concessions are benefitted with the process of competitive bidding. Furthermore, since the Argentina has a federal system of government, most of the regional governments have introduced their own policy making and regulatory authorities and are shifting away from commercial programming. Not only has this, some of the provinces are still in the procedure of introducing their own regulatory bodies which has behind the employment of the market rules and regulations. Moreover, the government and key players of this sector is doing effective projects for making the market more competitive and lead the market growth in the coming years.
The industry specific and economic improvements established by Macro government are anticipated to generate the best opportunities for procurement, engineering and construction companies across all the segments of this sector in the country. In addition, the Argentina’s non-hydro renewable market is fueled to account an effective at a positive CAGR. Nevertheless, the Argentina has established a systematic incapacity to capture the new investors for this sector.
Moreover, the federal government has controlled its partition in the electricity market to the regulatory, inaccuracy and policy making activities. Such activities have been allocated to the several agencies, which have a close functioning association and sometime even correspondence in their duties. Furthermore, with the extensive advantages of this sector in Argentina the new entrants are willing to enter the market and make the market more fruitful and profitable for both the consumer and the key players.
It is expected that the market of power in the Argentina will grow more significantly over the decades in the coming years with the more upcoming projects by the key players and government and the significant investment from the new investors.
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Ankur Gupta, Head Marketing & Communications