IFC Backs $275M Wind Power Project to Expand Argentina’s Clean Energy

The International Finance Corporation (IFC), a member of the World Bank Group, has announced financing support for a $275 million renewable energy project in Argentina that will expand wind power generation and strengthen the country's electricity transmission infrastructure.

The investment will support the development and construction of the Olavarría Wind Farm in Buenos Aires Province, led by Petroquímica Comodoro Rivadavia S.A. (PCR). The project is being co-developed with Acindar Industria Argentina de Aceros S.A., part of the ArcelorMittal group and Argentina's largest steel producer.

Acindar will source renewable electricity from the project as part of efforts to decarbonize its industrial operations.

Major Wind Farm Development

The project includes the installation of 29 wind turbines supplied by Vestas, with a total installed capacity of 185.6 megawatts.

In addition to power generation, the initiative will strengthen electricity transmission networks through:

• Construction of a 25-kilometre transmission line connecting the wind farm to the Olavarría substation

• Expansion and upgrading of capacitor banks at the Olavarría and Ezeiza substations

• Increased capacity along the Bahía Blanca–Abasto high-voltage corridor, linking wind-rich regions with Argentina's largest electricity demand centers

The project has been approved under Argentina's RIGI (Large Investment Incentive Regime), a government initiative designed to attract major investments in strategic sectors.

First Private Transmission Model for Renewables

The Olavarría Wind Farm will be Argentina's first renewable energy project to integrate privately financed transmission infrastructure into the national electricity grid, known as the Argentine Interconnection System (SADI).

By pioneering private-sector investment in transmission infrastructure, the project aims to serve as a model for future renewable developments across the country.

The initiative is expected to unlock additional renewable energy capacity, improve grid resilience and increase the efficiency of Argentina's power system.

Clean Energy for 230,000 Homes

Once operational, the wind farm is expected to generate enough electricity to power approximately 230,000 households annually.

The project will also deliver significant climate benefits by reducing around 320,000 metric tons of carbon dioxide equivalent emissions each year, contributing to Argentina's transition toward a cleaner energy mix.

Boosting Industrial Competitiveness

By supplying reliable and cost-competitive renewable electricity to industrial consumers, the project is expected to strengthen Argentina's manufacturing sector.

The initiative is also expected to create quality jobs, promote workforce skills in renewable energy and transmission engineering, and open new opportunities for small and medium-sized enterprises in regional supply chains.

"Investments that expand competitive renewable energy, modernize infrastructure, and create jobs are essential for Argentina's sustainable development," said Makhtar Diop, IFC Managing Director.

"Our partnership with PCR mobilizes private capital to deliver reliable and affordable power while expanding transmission capacity—helping drive growth, strengthen competitiveness, and unlock Argentina's full economic potential," he added.

Strengthening Sustainable Development

PCR Chief Executive Officer Martin Brandi said the project represents a major step toward strengthening Argentina's energy infrastructure while promoting long-term economic growth.

"This financial agreement with IFC enables us to move forward with a project that integrates strategic infrastructure, renewable energy and the creation of opportunities for communities and value chains," Brandi said.

Technical Support and Environmental Standards

In addition to financing, IFC will provide technical advisory support to ensure the project complies with international environmental and social standards under IFC's Performance Standards.

The support will help strengthen sustainability practices, improve risk management and attract further private investment into Argentina's renewable energy and infrastructure sectors.

The project marks a significant step in expanding Argentina's renewable energy capacity while strengthening the infrastructure needed to support long-term economic development.