The Quest for Energy Security in Argentina

This 2010 report by the International Institute for Sustainable Development analyzes the causes of energy insecurity in Argentina, focusing on the long-term impacts of 1990s privatization and macroeconomic reforms. It details how a shift toward private investment and a reliance on natural gas for electricity generation created a precarious supply system, exacerbated by the strategies of multinational corporations like Repsol-YPF and the failure of regional gas agreements.

• The energy sector reforms and privatizations of the 1990s shifted the responsibility for supply expansion from the state to the private sector, leading to short-term investment orientations and a lack of obligations to expand supplies.
• Argentina's electricity generation became over-dependent on natural gas due to the adoption of high-efficiency combined cycle technologies and the monetization of gas reserves, which discouraged investment in exploration and other energy sources.
• The Convertibility Plan (1992–2002) created an overvalued currency that initially encouraged high electricity consumption in commercial and household sectors but led to deindustrialization and an unsustainable reliance on foreign loans.
• 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 international position and supply security for Spain.
• The Loma La Lata gas field, the country's most important, experienced a significant production deficit compared to projections promised by Repsol in exchange for concession extensions.
• Argentina's attempts to secure gas from Bolivia were hindered by the 2006 nationalization of Bolivian reserves and the priority given to export commitments to Brazil.
• To mitigate gas shortages, Argentina has increasingly relied on more polluting alternative fuels like fuel oil and diesel oil, reversing previous trends toward a cleaner energy matrix.
• Diversification into renewable energy, nuclear power, and hydroelectricity is limited by high capital costs, the need for state subsidies, and the political difficulty of increasing tariffs.
• The government's GENREN program, launched in 2009, aims to promote 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} }