Argentina's AlmaSADI battery tender is already shaping up to be one of the most hotly contested current tenders in the Latin American energy storage market.
With 700 MW available for allocation , the possibility of expansion up to 770 MW , and expectations of bids that could quadruple the tendered volume, manufacturers such as Sungrow, Trina Storage, Huawei Digital Power, and Kehua Tech anticipate aggressive competition where price will be a determining factor, although not the only one.
“ We have more than 55 opportunities under consideration, so there is considerable interest. I think it's going to be quite competitive ,” stated Gonzalo Feito , director for the Andean region at Sungrow, during a meeting organized by the Argentine Chamber of Renewable Energies (CADER).
“I think there will be a lot of power offered and, therefore, prices will decrease, understanding that the gap is now at USD 12,500 MW-month, that the prices offered in AlmaGBA have been well below that and that there will be more supply,” said Franco Lomello , Solution Manager of Huawei Digital Power LATAM , at the event.
The other suppliers consulted agreed on the same interpretation: AlmaSADI will not only activate strong commercial pressure, but will also test the technological capacity of the bidders against more demanding technical requirements.
The competitive pressure comes at a sensitive time. At the request of the bidders, CAMMESA extended the timeline to improve the quality of the proposals: the opening of technical bids will be on May 27 , the financial bids on June 24 , and the award on July 8 .
And although a second two-week extension was rumored, sources in the sector confided to Energía Estratégica that, so far, it has not been accepted by the government authorities, so the dates already mentioned remain in place.
While the target date for the start of commercial operations was moved from January 1, 2027 to May 1 of that year, it is still considered a tight deadline by the sector.
But price and deadlines won't be the only deciding factors. Unlike previous tenders, AlmaSADI requires more sophisticated technical capabilities, and that could alter the competitive landscape among manufacturers, given that the specifications include requirements such as primary frequency regulation (PFR), short-circuit contribution, inertia, and black start , shifting the focus from simple power delivery to ancillary services.
“ The new AlmaSADI tender raises the bar . This isn't just a power market . However, manufacturers are being asked to ensure that BESS systems are capable of providing short-circuit support, which is perfectly valid. But the main question is for how long ,” the Huawei executive explains.
The definition is crucial: a requirement of seconds or minutes completely changes the technical and economic architecture of the project. Furthermore, the discussion also extends to synthetic inertia. If the system must operate at 150% of its nominal power , the impact would not only affect the power electronics but also the sizing of the storage itself, increasing the CAPEX.
Beyond the requirements of the tender specifications, there is a message that resonates with all manufacturers: storage is no longer analyzed as a complementary solution, but as a central infrastructure for the operation of the Argentine electrical system.
“BESS systems are presented as almost the only way to solve almost any problem on the network between 2 and 12 months,” said Luciano Silva, Product Manager LATAM at Trina Storage.
“ It’s a safety net to avoid having to refurbish transformer stations, with all the time and money that entails ,” added José Mustafhá , Sales Agent Representative of Kehua Tech.
“We are seeing, and it is a fact, that all solar projects will go hand in hand with a storage system,” Feito stated.
Urgent contracts and cost pressures
In addition to commercial competition and technical requirements, there is a financial factor that worries suppliers: the contractual timing, given that VAT refunds for batteries were reduced from 9% to 6% on April 1, 2026, and will be reduced to 0% on January 1, 2027.
Furthermore, the risk is associated with the volatility of supply chain costs. While the market has experienced months of relative stability, manufacturers recall recent events that could be repeated.
“The call is for bidders to seek to close contracts and finalize prices as soon as possible due to the tax rebate. We've just experienced a significant increase in the price of lithium carbonate and other components, which is a risk that is always present,” added the Trina Storage executive.
This creates a direct tension between the bidding process and the commercial validity of the offers. The longer the contract definition is extended, the greater the risk of a disconnect between actual costs and offered prices.
Not everyone, however, believes in an indefinite structural decline. “We are at a floor where we shouldn't expect prices to fall,” Mustafhá stated.
“It’s time to get creative, and I think that while the prices we’re seeing now may go down, there will come a time when they stabilize. It’s time to rack our brains and make the numbers work,” shared the director for the Andean region of Sungrow.