Final report Deloitte Click here
We have presented the results of the project "Energy Transition and Regional Integration", whose objective is to establish a road map, which includes actions to be executed in the short, medium and long term in the country to reduce greenhouse gas emissions, in the framework of the Paris Agreement.
It is about promoting energy efficiency and electrification of end uses, switching to primary energy sources free of emissions, aiming at a green electric matrix and encouraging sustainable production methods.
These three actions, also called "levers of the transition", have been framed within two possible scenarios: one that stabilizes the emissions (called Increased Effort) and the one that achieves the reduction (called Green Disruptive).
In other words, the idea is for 2050 to increase the supply of electricity from renewable sources, since it reduces the share of thermal generation in the national energy matrix, with an estimated electricity consumption of 382 and 424 TWh.
Regarding investments for electric transport capacity, the project includes between 33,500 km and 43,000 km of expansion lines, which would allow to dispatch between 30 and 35 additional GW of power to meet the peak demand.
Regional integration
With regard to regional integration, the benefits foreseen in this report are to increase the renewable share in at least 2.5 GW of intermittent renewable power without the need for backup, due to the better geographical diversification; decrease the need for thermal backup, at least 3 GW of power by 2030; also better transportation planning; less need for power at the country level, which translates into savings for the region as a whole, as well as sharing the costs of ancillary services between systems.
The savings generated in the long term, as projected, exceed the investments that would have to be made, which reaches a cumulative net profit at present value of up to 268 billion dollars.
Finally, the report lists some useful recommendations for the different actors of the energy transition, but fundamentally for those who make political decisions:
• Establish Energy Efficiency as a State policy, for which the sanction of a comprehensive Energy Efficiency Law is promoted.
• In infrastructure and networks: accelerate the implementation of Smart meters, digitize the electric power matrix, design a tariff structure that represents adequate prices to boost demand and seek integration between distributors and energy transporters to optimize the management of the matrix.
• In electricity generation: accelerate the Energy Transition to a matrix of emission-free electricity generation, implement storage to enhance the benefits and use of renewable energy at the system level, promote energy integration with neighboring countries and develop a regulation that encourages the necessary investments in the networks.
• In coal prices: develop the price signal that reflects the social cost of carbon, by increasing the carbon tax on fuels to reflect the cost of emissions and introduce a carbon market with emission limits for the segments that can not replace fuels, or with non-energy related emissions.
Transition
In the elaboration of the report, public and private actors from the national energy sector participated, agreeing on the need to identify the decarbonisation measures that Argentina should adopt to reduce greenhouse gas emissions.
It is worth noting that the energy transition is the process of structural change of the national energy matrix, which incorporates increasing shares of renewable energy or clean energy.