The Energy Secretariat of Argentina’s Ministry of Economy has launched a global tender for 500 MW of battery energy storage system (BESS) projects in the Metropolitan Area of Buenos Aires’ (AMBA) critical nodes.

The project’s estimated value is $500 million, with an execution period of 12 to 18 months. The initiative aims to improve the electricity supply’s reliability and efficiency, particularly during peak demand hours.

Bids must be accompanied by a bank guarantee of $10,000/MW.

The project involves installing BESS in key locations to enable rapid energy injection during shortages. These batteries will provide short-duration capacity, voltage control, and reactive power management to reduce the risk of failures in the existing energy infrastructure.

The energy storage contracts will be signed with leading electricity distributors in Buenos Aires, Edenor, and Edesur, while the Wholesale Electricity Market Administration Company (CAMMESA) will be the guarantor.

The government has encouraged provincial jurisdictions to analyze this model and implement similar solutions in their territories, focusing on critical CAMMESA-identified nodes.

The project is a part of Argentina’s energy contingency plan instituted in October 2024 to stabilize and improve its power infrastructure. The plan includes short, medium, and long-term measures to recover electricity systems facing critical issues.

AMBA comprises approximately 40% of the country’s electricity consumption, making it a priority for energy infrastructure improvements. The implementation of storage solutions aims to prevent power outages, improve system efficiency, and ensure a stable electricity supply during high-demand periods.

This initiative marks Argentina’s first large-scale adoption of energy storage technology. The government seeks to integrate BESS to optimize the existing grid’s performance and reduce reliance on emergency power sources.

Argentina is part of the “Lithium Triangle” along with Chile and Bolivia, with more than half of the world’s lithium resources. In January 2024, Khanij Bidesh India signed an agreement with Argentina-based mining company Catamarca Minera Y Energetica Sociedad Del Estado to explore and develop five lithium brine blocks. Lithium-ion is widely used in the manufacture of batteries for electric vehicles.