The Quest for Energy Security in Argentina

The report argues that Argentina's energy security has been compromised by the shift of investment decisions from the state to the private sector following 1990s privatizations. This led to a reliance on natural gas for electricity generation and a failure to diversify the energy matrix. The author highlights how multinational companies, specifically Repsol-YPF, prioritized global investments over local supply security. Despite recent government efforts to promote renewables and nuclear power, the report concludes that supply security will remain precarious in the short term due to fiscal constraints, distorted price signals, and dependence on imports from Bolivia and Brazil.

• The privatization of the energy sector in the 1990s shifted the responsibility for supply expansion from the state to private companies, which prioritized short-term returns and the monetization of reserves over long-term national energy security.
• Argentina's electricity generation matrix became over-dependent on natural gas due to the adoption of high-efficiency combined cycle technologies, which were attractive to private investors but left the system vulnerable to gas shortages.
• Repsol-YPF, the largest market actor, implemented a strategy of redirecting hydrocarbon revenues from Argentina toward investments in other global regions, such as North Africa, to improve its own international position and supply security for Spain.
• The 'Convertibility Plan' (1992–2002) and subsequent 'tariff pesification' created distorted price signals that discouraged investment in exploration and energy efficiency while driving up electricity demand in commercial and household sectors.
• The 2004 gas supply crisis forced Argentina to rely on more polluting alternative fuels, such as fuel oil and diesel, reversing previous trends toward a cleaner energy matrix.
• Diversification into renewables, nuclear, and hydroelectric power is hindered by high capital costs, the need for state subsidies, and a fragile public account balance.
• Future energy security depends heavily on bilateral agreements with Brazil for hydroelectric projects and the reactivation of gas supplies from Bolivia, though neither has been fully realized.
• The GENREN program, launched in 2009, aims to provide 1,000 MW of renewable energy through 15-year contracts, with a strong emphasis on wind farms.

APA

Kozulj, R. (2010). The Quest for Energy Security in Argentina. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/quest_energy_security_argentina.pdf

Chicago

Kozulj, Roberto. The Quest for Energy Security in Argentina. International Institute for Sustainable Development, 2010. https://www.iisd.org/system/files/publications/quest_energy_security_argentina.pdf.

Wikipedia

{{cite report |last1=Kozulj |first1=Roberto |title=The Quest for Energy Security in Argentina |publisher=International Institute for Sustainable Development |date=2010 |url=https://www.iisd.org/system/files/publications/quest_energy_security_argentina.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{kozulj2010quest, author = {Kozulj, Roberto}, title = {{The Quest for Energy Security in Argentina}}, institution = {International Institute for Sustainable Development}, year = {2010}, url = {https://www.iisd.org/system/files/publications/quest_energy_security_argentina.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }