Argentina bets on a new model: private investment to transform energy infrastructure

In recent months, the Argentine government has introduced a series of projects involving an ambitious package of electricity and gas infrastructure works that aim to mark a turning point in the country’s financing and execution model. For the first time in decades, these projects will be primarily financed and executed by the private sector under concession schemes. This decision not only responds to the energy emergency declared in December 2023 but also signals the beginning of a new phase focused on productive investment, reduced state dependence, and the acceleration of strategic projects. The administration of Javier Milei is firmly advancing this strategy and actively seeking private investment across multiple sectors.

In the electricity sector, the government announced plans to add 5,610 kilometers of new high-voltage transmission lines—representing a 38% increase over the current grid—to alleviate bottlenecks, prevent service outages, and strengthen the Argentine Interconnection System (SADI). The projects were identified following a thorough technical assessment by the Electricity Transmission Commission, composed of the National Secretariat of Energy, the Energy Federal Council (CFE), among other key institutions regulating electricity in Argentina. Seventeen high-priority strategic projects have been identified, including AMBA I and II, the Vivoratá–Plomer line, and others spanning the length of the country, from north to south.

Separately, on May 22, the government launched the first tender for a privately initiated gas infrastructure project: the expansion of the Perito Moreno Pipeline (formerly known as the Néstor Kirchner Pipeline). Under a 15-year contract, the state-owned company Enarsa aims to add 14 million cubic meters per day through the installation of new compressor plants, with the potential to increase capacity by an additional 6 million in the future. This project—crucial to consolidating Vaca Muerta as the country’s energy hub—will help ensure domestic supply, reduce imports, and boost regional exports. It also represents a structural shift in the investment model for gas transport, which has traditionally relied on public funding.

This convergence of private initiatives across various segments of the energy system reflects a profound transformation. The government’s goal is to prioritize private investment over public funding as a driver of economic development—breaking with the approach of previous administrations. If this model is sustained over time, energy infrastructure projects will become long-term investment opportunities rather than mere items in the national budget.