Argentina is embarking on a significant policy shift by transitioning four major hydroelectric dams to private ownership, led by President Javier Milei. These dams, including Alicurá, El Chocón, Cerros Colorados, and Piedra del Águila, contribute around 30% to the nation’s hydroelectric output with over 4,000 MW in capacity.
The government aims to secure sales through international bids within the next six months, citing historical context and economic challenges as the driving force behind this move. Facing energy shortages and economic difficulties, Argentina looks to reevaluate its energy management approach.
The potential impacts of privatization are met with both optimism and concerns. While it could attract essential investments and boost operational efficiencies, critics fear that electricity costs may rise and national control over strategic resources may diminish, affecting industrial competitiveness and energy sovereignty.
Learning from global experiences, Argentina navigates through the complexities of privatizing critical infrastructure, drawing lessons from Brazil, Chile, India, and Canadian provinces. The success of this initiative hinges on a transparent bidding process, robust regulatory framework, infrastructure investments, and measures to protect consumers and businesses from price shocks.
As Argentina treads on this transformative path, insights from international practices will play a crucial role in shaping the country’s energy policy, resource management strategies, and economic sovereignty in the evolving global landscape.