GlobalData says the renewable energy uptake will follow a steady trajectory over the next few years, owing to various structural and financial hurdles faced by Argentina.

According to the report, while Argentina has the ability to generate a lot of energy from renewables such as wind and solar power, it is unlikely that its development will be rapid. The main hindrances highlighted include economic uncertainty and a lack of financing facilities.

Fossil fuels constitute a significant proportion of energy sources utilized in Argentina’s electricity production. This dependence is one of the barriers to adopting renewable energy sources in the country.

There are several supportive policies in terms of auctions and regulations for renewable energy in Argentina. However, implementation problems have been reported. Long-term financing and currency risk management have been issues for developers, limiting investors' involvement in projects.

Constraints still exist in the transmission network. Transmission capacity limits in regions with abundant renewable energy sources have hampered new project developments, especially in distant areas where there are many wind and solar plants.

Renewable energy targets are being pursued in Argentina under its energy policy framework. Various government actions include power purchase agreements and incentives that encourage higher renewable energy contributions to electricity production.

According to GlobalData, any improvement in macroeconomic fundamentals and policy stability is key to success in the future. Financing and regulatory factors are likely to impact the rate of development.

Renewable energy capacity is projected to increase in the coming years due to the presence of favorable natural resources like wind in Patagonia and solar energy in the north. Renewables could contribute more to the country’s energy mix if existing obstacles can be overcome.

In the shorter term, renewable energy capacity growth will continue to be stable. Deployment will be determined by the way the financing and infrastructure challenges are handled.

The findings reflect a pattern seen in other emerging markets, where renewable energy expansion is influenced by financial and institutional conditions alongside resource availability.