SoWiTec Argentina Projects Brazil Projects Chile Projects Mexico Projects Peru Projects Uruguay back to Latin America Map	Hit hard by the economic crisis of 2001 - 2002, Argentina's economy has recovered to pre-crisis level with gross domestic product growth of 9.2% (2005), 8.5% (2006) and an estimated 7.5% for 2007. This booming economy has the electricity sector racing to catch up with demand growing at 5 % annually and calling for 900 MW of added capacity each year. The Argentine economy is characterised by strong government intervention. So far, domestic electricity prices have been subsidized. Currently, some 55% of Argentina's 30,000 MW generation capacity are fuelled by expensive gas and oil. Gas shortage has caused the country to cancel supply contracts to neighbouring Chile and Uruguay in 2004. The question is: how long can the government maintain costly subsidies and at what point will a “deregulation” of the energy market occur. The government is desperately seeking options to diversify the electricity sector and to tap into more economical, sustainable sources such as wind power. Should this supply gap be filled by wind power at 40% efficiency only, this market reveals a potential of approx. 2,250 MW/ yr.
	With excellent wind resources especially in the Santa Cruz, Chubut and Buenos Aires provinces, analysts estimate a total wind power potential in Argentina at 500,000 MW. Large industrial corporations are even considering wind power to generate electricity for hydrogen production due to the plentiful wind resources. SoWiTec is locating these sites to develop wind parks with high efficiency and high yields. Currently a pipeline of 8,500 MW is under development at the most attractive, windy sites.