Argentina’s latest battery energy storage system (BESS) tender is shaping up to attract unprecedented interest, with both public authorities and private developers expecting a volume of bids far exceeding the capacity on offer. The process, known as AlmaSADI, aims to procure 700 MW of storage, with the possibility of expanding to 770 MW.
Industry estimates suggest that the number of proposals could reach up to four times the target capacity. This level of competition is likely to push bid prices down compared to the previous AlmaGBA tender, even as global capital expenditure (CAPEX) costs continue to rise.
“My expectation is that we will see at least four times the volume of bids relative to the 700 MW target in the AlmaSADI battery tender,” said Marcelo Álvarez, president of the Argentine Chamber of Renewable Energy (CADER). “That will probably drive prices lower than in the AlmaGBA process, although equipment costs are increasing at source.”
The Argentine government has also highlighted strong early market engagement, with a growing number of enquiries and anticipated participation surpassing the previous auction, which awarded 713 MW of BESS projects in the Buenos Aires Metropolitan Area.
“There is significant interest in the AlmaSADI tender. It is expected to be more relevant than AlmaGBA,” noted Maximiliano Bruno, National Director of Power Generation.
Following requests from bidders, the tender schedule has been extended to improve the quality and competitiveness of proposals. Key milestones now include:
- Submission of bids and opening of Envelope A (technical and administrative offers): 27 May
- Opening and evaluation of Envelope B (financial offers): 24 June
- Award decision: 8 July
Despite the two-week extension already granted, authorities do not expect further delays, unless exceptional circumstances arise.
The target date for commercial operation remains January 2027, although private sector stakeholders have raised concerns over the limited timeframe between contract award and project commissioning.
The tender’s technical design seeks to balance grid integration and operational efficiency. Projects must range between 10 MW and 150 MW, with a mandatory four-hour discharge duration, aligning with global standards for utility-scale energy storage.
According to CAMMESA (Argentina’s wholesale electricity market administrator), the project size criteria are driven more by operational and administrative considerations than purely technical ones.
“Developers tend to prefer smaller projects, as they integrate more easily into 33 kV or 13 kV distribution networks. However, a large number of small projects complicates dispatch and system management. Ideally, there should be a balanced mix of large and small-scale assets,” explained General Manager Juan Luchilo.
In parallel, updates to the grid connection nodes — including the addition of locations in the Northeast of Argentina (NEA) and revised capacity limits of 120 MW to 150 MW in Buenos Aires — aim to increase competition and diversify project deployment.
“These changes have expanded the total regional capacity available for project siting by nearly 50%, enhancing interregional competition,” Luchilo added.
With high expected participation, broader technical flexibility, and downward pressure on prices, the AlmaSADI tender is emerging as a pivotal moment for the development of energy storage in Argentina.
The outcome will largely depend on how developers balance rising investment costs with increasingly aggressive bidding strategies in a competitive renewable energy and storage market.
