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Argentina’s 500MW “AlmaGBA” Energy Storage Tender
Argentina’s 500MW “AlmaGBA” Energy Storage Tender: Key Insights for Global BESS Providers
June 6, 2025 | LondianESS Energy Insights
The Argentinian Ministry of Energy has launched the “AlmaGBA” Battery Energy Storage System (BESS) tender, aiming to deploy 500MW (4-hour duration, totaling 2GWh) to address electricity shortages in the Buenos Aires Metropolitan Area (AMBA). This project presents a significant opportunity for global energy storage providers, and LondianESS breaks down the technical requirements, financial model, and strategic considerations for potential bidders.
1. Project Overview & Key Details
1.1 Tender Objectives
- Total Capacity: 500MW (4-hour duration, 2GWh total storage)
- Scope: Stabilize AMBA’s grid, prevent blackouts during peak demand (summer 2025-2026)
- Technical Requirements:
- Minimum system size: 10MW
- Maximum system size: 150MW
1.2 Critical Timeline
| Phase | Date | Details |
|---|---|---|
| Bid Submission Deadline | May 19, 2025 | Submission of “A-Document” bids |
| B-Document Submission | June 18, 2025 | Additional technical proposals |
| Winner Announcement | June 27, 2025 | Selected bidders disclosed |
| Contract Signing | June 30, 2025 | Project execution begins |
2. Business Model & Revenue Structure
2.1 Dual-Payment Mechanism
The contract combines capacity-based payments + energy discharge revenue:
- Monthly Capacity Payment (USD/MW-month):
- Formula:
[USD/MW·month] × FA × Available Capacity [MW] × (HAV/HAC) - Maximum Reward (VOmax): $15,000/MW-month
- Formula:
- Energy Discharge Revenue: $10/MWh
2.2 Annual Factor (FA) Adjustment
| Year Range | FA Value | Implications |
|---|---|---|
| 2025-2026 | 1.20 | Highest revenue phase |
| 2027 | 1.10 | Gradual reduction |
| 2028-2036 | 1.00 | Stable operation period |
| 2037-2041 | 0.50 | Lower incentive phase |
Key Takeaways:
- 2025-2026 offers peak returns (ideal for fast-deployment strategies).
- Long-term investors benefit from stable cash flow until 2036.
3. Market Opportunities & Challenges
3.1 Why Argentina’s Storage Market Matters
- Policy Support: Argentina is accelerating renewables + storage integration.
- Grid Demand: AMBA faces chronic peak-load shortages, creating an urgent need for BESS.
- Global Players Welcome: Limited local supply chain opens doors for international providers.
3.2 Potential Risks
- Currency Risk: Contracts are USD-denominated, but Argentina’s peso volatility requires hedging strategies.
- Local Content Rules: Some bids may require local partnerships or job creation.
4. LondianESS Recommendations for Bidders
4.1 Optimal Technology Solutions
- Recommended System: 150MW/600MWh Lithium-Ion BESS (LFP chemistry for longevity).
- Grid Integration: Advanced inverter & EMS for seamless grid compliance.
4.2 Strategic Bidding Approach
- Short-Term Focus: Maximize 2025-2026 returns with rapid deployment.
- Long-Term Planning: Consider 20-year asset lifecycle management.