Argentina has taken a major step toward modernizing its energy infrastructure with the launch of a 500 MW battery energy storage system (BESS) tender under the AlmaGBA program. Aimed at enhancing grid reliability in the metropolitan area of Buenos Aires (AMBA), this $500 million initiative marks one of the country’s most significant moves toward integrating large-scale energy storage into its electricity market.
The tender, overseen by CAMMESA — Argentina’s Wholesale Electricity Market Administration Company — invites bids from developers capable of deploying new battery systems that can deliver at least four hours of continuous discharge. With an 18-month project implementation timeline, the program seeks to rapidly scale up energy storage capacity to meet the region’s growing demand and reduce dependence on fossil-fueled peaking plants.
Under the proposed terms, selected projects will enter into contracts lasting up to 15 years, commencing either on the date of commercial commissioning or January 1, 2027 — whichever comes first. To ensure financial viability, CAMMESA has outlined a two-tiered compensation structure: developers will receive a fixed payment of $10 per megawatt-hour (MWh) of energy delivered, while capacity will be compensated at a maximum rate of $15,000 per megawatt (MW) per month.
One notable feature of the tender is CAMMESA’s commitment to backstop payments for up to a year in the event of default by the primary off-takers, Edenor and Edesur, the two major electricity distributors in the AMBA region. This mechanism significantly reduces counterparty risk for investors and could encourage greater international participation.
To qualify, battery systems must be entirely new and meet stringent technical requirements, including a minimum discharge duration of four consecutive hours per cycle. Project sizes must range between 10 MW and 150 MW, though this upper limit may be reduced depending on the capacity of the local grid connection point.
The competitive bidding process will close on June 10, with evaluations scheduled for early July. Successful bidders can expect to receive contract awards within a week of the evaluation phase, with formal agreements slated for signing from July 28 onward.
A Strategic Move Amid a Global Storage Surge
Argentina’s AlmaGBA tender aligns with a broader global trend of governments turning to battery storage as a flexible, fast-response solution to support renewable energy integration. As solar and wind power continue to grow in Latin America, storage is becoming a crucial tool for managing intermittency and ensuring grid stability. Buenos Aires, with its dense urban load and aging infrastructure, is an ideal candidate for such an upgrade.
Moreover, this tender arrives at a time when battery prices are becoming increasingly competitive, and international developers are actively seeking new markets with clear regulatory frameworks and stable revenue models. Argentina’s fixed-price scheme and CAMMESA’s payment guarantees could offer a compelling incentive for private sector engagement.
By committing to large-scale BESS deployment, Argentina is not only addressing immediate reliability challenges but also laying the groundwork for a cleaner, more resilient electricity system in the years to come.
🔗 For full details and official tender documents, visit the CAMMESA AlmaGBA project page: https://cammesaweb.cammesa.com/almagba-2/
BATTLINK Battery Energy Storage Systems Expert