Central Puerto and IFC promote the development of the first power line to boost sustainable mining in Argentina

Buenos Aires, December 5, 2024 – The International Finance Corporation (IFC), a member of the World Bank Group (WBG), and Central Puerto, Argentina’s largest private electricity generator, announce the signing of an agreement to advance feasibility studies for the first power transmission line to supply renewable energy to mining companies in northwestern Argentina.

These studies will assess the technical, economic and environmental viability of the project, which aims to interconnect mining projects in the Argentine Puna region to the Argentine Interconnection System (SADI), guaranteeing a reliable supply of renewable energy through private-private agreements.

“At IFC, we seek to accelerate the global energy transition, and the private sector in Argentina has the potential to be a leader in the industry. The collaborative work with Central Puerto adds to these efforts by prioritizing renewable energy and supporting the sustainable mining industry with the necessary infrastructure to also reach its full potential,” said Alfonso García Mora, IFC Vice President for Europe, Latin America, and the Caribbean.

“Mining in northwestern Argentina is a strategic sector for the economic growth of our country. Faced with an international market that is increasingly demanding critical minerals, essential for the energy transition, this project responds to the need of mining companies to improve their competitiveness through reliable, efficient, and economical energy solutions,” said Fernando Bonnet, CEO of Central Puerto.

With an estimated total investment of USD 600 million, the Central Puerto initiative contemplates the construction of a high voltage line (HVL) of approximately 140 kilometers originating at the Puna Transformer Station (ET). The project foresees a potential capacity of up to 400 MW, offering competitive energy supply mainly from renewable sources.

The new infrastructure will not only benefit the mining industry but will also allow supplying communities close to the areas of influence of the installation of this new transmission line, which are currently isolated. This constant energy supply will contribute to the development of these communities, improving their quality of life and promoting their growth.

In addition to strengthening the competitiveness of the mining industry, this project has the potential to boost economic development both regionally and nationally. Currently, mining accounts for just 0.7% of Argentina's GDP, well below the 8% to 10% it reaches in countries such as Chile and Peru. This effort not only seeks to close that gap, but also to position Argentina as a leader in the transition to a more sustainable economy.

Continuing the legacy of previous collaborations between Central Puerto and the IFC in financing projects under the RenovAR and MATER bidding scheme, this initiative will provide mining companies with access to a constant supply of renewable energy. In addition, it will be supported by a solid interconnection infrastructure with the SADI, which will facilitate future long-term PPA contracts between supply and demand.

The joint effort of Central Puerto and IFC seeks to transform the Argentine northwest into a key hub for renewable energy generation and sustainable mining, contributing to the country's economic growth and its competitive positioning on the global stage.

About Central Puerto S.A.

Central Puerto is a leading company in the production of electric energy in Argentina with 14 generation plants of various technologies, more than 1,600 employees and a 20.13% market share thanks to its operational excellence and profitability. Its mission is to produce electric energy in an efficient, sustainable manner and in harmony with the environment. At the same time, it seeks to contribute to supplying demand, managing businesses in a way that creates value not only for the company, but also for society. Currently, it has an installed generation capacity of 6,703 MW. For more information, visit: www.centralpuerto.com.