Project detail - Energética Argentina S.A

Who is our prospective customer?

Energética Argentina S.A. (“EASA”) is an Argentine power generation company focused on wind energy. The company is fully owned by AES Argentina and benefits from a guarantee for this transaction from its parent company. EASA owns and operates the Vientos Bonaerenses I and II wind farms, with an installed capacity of 99.75 MW. AES Argentina is part of the AES Corporation and represents the Group’s operations in Argentina. It operates a diversified power generation portfolio supplying both regulated and private markets, with total installed capacity of approximately 2,000 MW. This includes around 160 MW of hydroelectric capacity, approximately 1,600 MW of thermal generation, and about 200 MW of wind capacity, including EASA’s assets. Through this diversified platform, AES Argentina plays an important role in system reliability while supporting Argentina’s energy transition.

What is our funding objective?

The Project consists of financing provided to EASA for the construction and operation of two wind farms with a combined installed capacity of 102.4 MW: Vientos Bonaerenses III (VBIII) and Vientos Bonaerenses IV (VBIV), located in the municipalities of Tornquist and Bahía Blanca, respectively, in the Province of Buenos Aires, Argentina. The Project will comprise 16 wind turbines (eight per wind farm), and will include the engineering, procurement, supply, installation, and construction of: (i) the wind farms; (ii) an expansion of the existing 33 kV electrical substation to evacuate the energy generated to the Argentine Interconnection System (Sistema Argentino de Interconexión – SADI) through the Tres Picos 132/33 kV transformer substation; (iii) an internal underground medium-voltage power and communications network; (iv) an operations and maintenance building; and (v) internal access roads and auxiliary roads within the wind farms. The financing for EASA consists of a corporate A/B loan, with the A Loan funded by IDB Invest and a B Loan funded through FMO’s participation as a B-Loan lender.

Why do we want to fund this investment?

The project is important for Argentina’s electricity market, which continues to require new generation capacity to meet demand growth, improve system reliability and reduce dependence on fossil fuels. Wind energy plays a central role in Argentina’s renewable energy strategy, and the expansion of Vientos Bonaerenses directly supports national objectives to increase renewable penetration and reduce greenhouse gas emissions. Electricity generated by the project is expected to be commercialized under market-based renewable frameworks such as MATER, which enable private offtake contracting and support the development of unsubsidized renewable energy in the country. By expanding capacity under these frameworks, the project contributes to a more competitive, transparent and sustainable power market while reinforcing private investment in Argentina’s energy sector. The project has the Green Label approved from FMO, which thereby certifies that the investment aims to support activities that contribute to climate mitigation and/or climate adaptation, contributing to SDG 13.

What is the Environmental and Social categorization rationale?

The project is categorized as E&S category B+ due to the following risks and impacts: i) changes to the air quality and increased levels of noise and vibrations during the construction works; ii) possible occupational accidents (falls and electrocution) during works at heights and electrical works; iii) noise emissions and shadow flicker during the operation of the wind turbines; iv) changes to the soil (erosion); v) waste generation; vi) changes to road traffic caused by the transport of over-sized loads; vii) impacts on biodiversity mainly because of possible collisions of birds and bats with the wind turbine blades during the operation phase; viii) permanent changes to the landscape due to the presence of generation structures and ix) supply chain risks. The IFC Performance Standards applicable for this transaction are 1-4 and 6. These impacts are considered of medium intensity and could be managed with handling (prevention, mitigation and compensation) measures that are standard for this type of projects. Relevant actions on improving the current E&S management system, procedures and policies are agreed on in the E&S Action Plan.