EarthTalk: To what extent has Chinese funding facilitated Argentina’s transition to renewable energy?

Juliana González Jauregui: The involvement of Chinese state-owned enterprises, private enterprises and the country as a whole has been decisive in Argentina's energy transition, both directly and indirectly. First, Chinese companies have won a large number of projects by bidding in the RenovAr program (a government program launched in 2016 to encourage private investment in renewable energy auctions). Second, by executing these projects, especially those led by PowerChina and Goldwind, these Chinese companies are expected to expand further in Argentina. It is clear that China is committed to promoting cooperation with Argentina in the energy transition.

What role did the Argentine industry play in the deployment of the first wave of solar and wind projects?

Argentina is far behind in the solar industry, but has made great progress in the wind energy sector. However, in terms of cost, there is a significant gap between China and Argentina. As the Chinese industry exploded, Argentina found it difficult to compete with it in terms of price and technology. I think the issue worth paying attention to is technology transfer and how Argentina can include support for local industry in certain projects. Argentina's energy plan lacks a long-term vision, and it is in this context that Chinese companies have entered the market. But Argentina’s inability to consider technology transfer during negotiations has nothing to do with China, it’s our own problem.

How do China and Argentina cooperate at the provincial level on energy transition?

Jujuy is the most iconic and earliest example of provincial cooperation between the two countries, and it has also led to cooperation in other provinces. The Jujuy government realized early on that it had to participate in China’s visit. It was also one of the first provinces to establish friendly relations with Chinese provincial units (with Guizhou Province in 2018). Financing also followed, with the most representative project being the Cauchari solar park and the recent addition of a solar train project. Similar processes have also begun in Salta, Catamarca and Tierra del Fuego.

European and American companies have also invested in areas related to Argentina’s energy transition, especially in lithium extraction. How do they cooperate with provincial governments?

The EU and the US have not yet realized the importance of promoting sub-national cooperation in Argentina, while China has achieved it quickly and well. In Argentina, natural resources belong to the provinces, so sub-national cooperation is essential.

Argentina joined the Belt and Road Initiative in 2022. Does this have any impact on renewable energy investment?

After the signing, I did not see any substantive changes. The Belt and Road Initiative is more of a symbolic label - China wants to reshape the international order through its own understanding of multilateralism. In fact, most of China's investment in Argentina was carried out before the signing of the agreement. But our political dynamics are different from other Latin American countries. For example, Chile has always maintained a consistent position in its relations with China, and we have not done this.