The AlmaSADI tender to incorporate battery storage into the Argentine electricity system sent a clear signal to the market: there is appetite, competition and local technical capacity to develop storage projects in tight deadlines.
This was stated by Martín Brandi , CEO of PCR, during an interview on the Energía Estratégica streaming program with Gastón Fenés and Matías Medinilla ( see interview on YouTube ), within the framework of the call promoted by CAMMESA to contract just over 700 MW of power with batteries.
The tender received bids for more than ten times the capacity sought , a response that, for the executive, confirms the interest of the private sector in this new segment of the Argentine electricity market.
“From the Government’s point of view, it can clearly be seen as a successful tender: it went out looking for just over 700 MW and received offers for more than ten times that capacity,” Brandi said.
PCR participated in the tender through Luz de Tres Picos, the company through which it channels its renewable energy projects. The company submitted bids for 645 MW, placing it among the top bidders in the call for tenders.
However, Brandi clarified that the volume offered by the companies should not necessarily be interpreted as an expectation of total award.
“I don’t think everyone bid with the realistic expectation of winning everything presented. Each company probably defined a high level of appetite for some projects, a medium level for others, and that’s how they built their strategy,” he explained.
The possibility of submitting proposals at different points in the system led companies to structure broad portfolios, with differentiated strategies according to location, available capacity, necessary works and expected competitiveness.
“Nothing guarantees that the future price will be lower”
One of the central points of Brandi's analysis was linked to the debate about how much should be awarded now and how much should be reserved for future calls for tenders.
There is a recurring discussion in the market: if renewable and storage technologies continue to evolve, is it advisable to wait for prices to fall before contracting more capacity?
According to the CEO of PCR, that hypothesis should be taken with caution.
"First, it's uncertain whether prices will go down in the future," he said.
Brandi noted that Argentina's experience with the RenovAr program demonstrates that prices don't always follow a downward trend. Although renewable technology has advanced, project costs have also changed, especially due to international factors, inflation, financing, logistics, and inputs.
“If you review what happened with RenovAr, the minimum price of renewable energy in Argentina occurred in RenovAr 2. After that, prices rose because costs also rose,” he noted.
In that regard, he cited as an example a PCR project awarded in RenovAr 2, whose contract, including the corresponding bonus, is around 48 dollars per MWh.
“Today nobody does a project with $48 per MWh; it’s impossible because the costs are higher,” he stated.
The definition points directly to the heart of the regulatory and economic discussion: if the system needs firm power and the available product is competitive, waiting under the expectation of a future drop can involve risks.
“The idea that prices will always fall doesn't necessarily hold true. This year, for example, inflation in the United States continues to have an impact. Furthermore, these contracts are in nominal dollars; they aren't adjusted for inflation. There's no guarantee that the future price will be lower,” Brandi emphasized.
The executive acknowledged that it might be reasonable not to contract all the capacity at once and to distribute the awards in different stages. But he also maintained that the delay has a cost when the need for the system is immediate.
The home advantage
Another focus of the interview was the competitive advantage that companies with a prior presence in Argentina have over potential international players seeking to enter the market through the bidding process.
For Brandi, ALMA SADI is a tender where execution time plays a decisive role. Projects must be available quickly, and the tender recognizes a higher value for the power delivered in 2027.
“This is a tender where it is very difficult for an international player without a prior presence in Argentina to compete. The projects must be completed within very short timeframes,” he explained.
He elaborated: “If an international company has to set up shop in Argentina after being awarded a contract, it’s already too late. While it’s building its team, local structure, and execution capabilities, a local player is already constructing.”
According to the CEO of PCR, the design of the call favors those who already have technical teams, knowledge of the electrical system, relationships with distributors, construction experience and the ability to mobilize resources immediately.
“The bidding process rewards early availability. In 2027, a higher price will be paid for power, so we all know that we need to secure as many months as possible during that year. To achieve this, being already established in the country provides a significant advantage over those who still need to set up operations,” he stated.
The reading explains why a large part of the offered capacity was concentrated in local players or those with recent experience in the Argentine electricity market.
The work behind the offers
Brandi also sought to dispel the notion that the companies submitted speculative bids or bids lacking sufficient technical development.
In the case of PCR, he assured that the previous process was intense and required a detailed analysis of each connection point.
“In our case, it was a very important task. We studied 23 sites, visited each one, analyzed the transformer station where we would eventually connect, evaluated the capacity that could be installed at each point, and checked if any complementary work was necessary to make the battery viable,” he explained.
Finally, PCR submitted 22 bids, after dismissing one of the sites analyzed.
The CEO emphasized that the work was not exclusive to his company. He indicated that, upon visiting the sites, they were able to verify that other companies had also conducted in-depth studies.
“We weren’t the only ones who did that work. When you visit the sites, you find out which other companies were there. We know that many companies did their homework,” he stated.
He emphasized: “It wasn’t about throwing out offers at random. We take each and every offer we submit very seriously.”
For Brandi, the volume of proposals should not be confused with improvisation. On the contrary, she believed that many companies invested resources, time, and technical analysis to develop competitive bids.
“Everyone who thoroughly studied the bidding process and visited the sites did so to submit a competitive offer. Nobody spends time, money, and resources like that for no reason. I know that many companies worked very seriously,” he said.
Could there be a second battery tender?
With more than 8 GW offered for a call for tenders of just over 700 MW, the market is already looking at what will happen to the projects that are not awarded.
Brandi did not rule out the possibility of a new window opening for storage, even in an election year.
“I believe there could be a second bidding process next year, even though it’s an election year. I don’t see it as impossible,” he said.
The executive acknowledged that an election year can always add difficulties, but considered that this type of project can once again attract private interest if the need for the system persists.
“There can always be some difficulties, but this type of project can be put out to tender and be successful even in an election year,” he said.
However, he clarified that the reuse of projects will depend on each connection point. If a site is not awarded to any bidder, it may regain value in a future call for proposals. But if the available capacity is occupied by another project, the opportunity at that node is lost.
Beyond the specific sites, Brandi believes the technical expertise gained by the companies will be valuable for future opportunities. A company that has already studied batteries, connectivity, complementary infrastructure, economic models, and execution timelines doesn't start from scratch in a second bidding process.
Mining, RIGI and new demand: another window for batteries
For Brandi, the opportunity for energy storage extends beyond the ALMA SADI tender and future CAMMESA calls for bids. The growth in new electricity demand, especially associated with mining projects and large investments progressing under the Large Investment Incentive Regime, could open up new avenues for batteries.
“Mining companies with approved RIGI fall under what I call new demand. It’s a demand that we will all want to supply,” he stated.
The point is strategic: the large consumptions that are incorporated into the system will not only need energy, but also firm power and backup to guarantee their operation.
In that scheme, renewables can provide competitive energy, while batteries can offer power, flexibility, and speed of execution.
“This new demand, wherever it comes from, will require power and energy. Batteries can be a solution for power, complemented by renewables for energy supply,” he said.
The definition positions storage as a key element not only to meet the needs of the electrical system, but also to enable the supply of large industrial, mining and productive consumption.
In particular, mining appears to be one of the sectors with the greatest potential to demand combined renewable energy, power, and storage solutions. If projects under the RIGI program scale up, the challenge will not only be to obtain clean and competitive energy, but also to guarantee supply capacity within the timeframes required by the investment.
There, storage can become a decisive tool to accelerate responses, reduce bottlenecks, and complement renewable expansion.
PCR and a possible look at transmission
Another novel point of the interview was PCR's potential perspective on the electricity transmission business.
The company has been gaining experience in infrastructure from works associated with the Olavarría Wind Farm, which has approved RIGI and includes interventions in 500 kV, replacement of capacitors in Olavarría and installation of capacitors in Ezeiza.
“We are gaining experience in electrical infrastructure. The RIGI project that we have approved for the Olavarría Wind Farm includes a 500 kV project, with capacitor replacement in Olavarría and capacitor installation in Ezeiza,” Brandi explained.
PCR decided to carry out the work through its own subsidiary, rather than subcontracting it entirely. It also developed the project's transformer substation.
“That allows us to develop capabilities to be competitive when opportunities arise in transmission,” he said.
When asked if PCR could participate in future electric transport projects, Brandi chose to be cautious, but confirmed that the company will be monitoring the sector.
“We are going to study it. These are very large projects and they need to be analyzed seriously,” he said.
He added: “I think it won’t be too long before they get underway, because the system has needed them for years. If there is a genuine commitment to the country’s growth, these projects will eventually be completed.”
The definition is relevant because the expansion of transmission appears as an indispensable condition to sustain the growth of renewable generation, enable new demand and reduce operational constraints of the system.
In that context, PCR is not yet presenting itself as a player determined to enter the transportation business, but rather as a company that is building technical and operational capabilities that could allow it to analyze that market when new opportunities open up.
Chile, the United States and the diversification of PCR
Brandi also reviewed PCR's international strategy. In Chile, the company has had a presence for years, although not in renewables, but through a cement trading and distribution company linked to its factory in southern Patagonia.
Regarding the Chilean renewable energy market, the CEO explained that PCR analyzed it, but decided not to move forward because it found a market that was already very mature.
“The Chilean market developed before the Argentine one. By the time we had acquired know-how and felt competitive, Chile was, in our opinion, excessively mature,” he noted.
He added: “We were seeing prices that, from our understanding of the market, could be considered almost speculative. We couldn't find a healthy place to invest. That's why we decided to look at the United States.”
In the United States, PCR is building 30 MW of solar power in Texas, under a distributed generation scheme. The decision to enter that market was made around 2022, driven by diversification strategies and a desire to reduce country risk.
“We wanted to have a presence in countries with lower country risk. We were looking for diversification and exposure to more stable markets. Obviously, it's a very competitive market, but if you find your niche, the market has no limits,” he explained.
The timing, however, wasn't perfect. Between the development and execution of the projects, the United States modified its promotional regime for renewables. Even so, Brandi emphasized that PCR's projects remained subject to the conditions precedent.
“The United States has legal certainty: if a rule changes, the change applies going forward and does not affect those who have already invested capital,” he argued.
In addition to solar projects in Texas, PCR also has unconventional oil production in the United States.
“In the end, in the United States we end up producing more oil than renewables. We have unconventional oil production and, in addition, we are building those 30 MW of solar power in Texas,” he said.
Argentina, energy and oil: the two focuses of PCR
Despite international diversification, Brandi emphasized that Argentina remains a market with opportunities for PCR, especially if the country manages to sustain a cycle of economic growth.
“In electricity and renewables, I believe Argentina still has room to grow. If the country begins a cycle of economic growth, the electrical infrastructure and generation capacity will have to keep pace. In that context, Argentina will continue to offer opportunities,” he stated.
The executive defined two major strategic areas for the company: energy and oil.
“I would say we have two main areas of focus. One is energy, which started with renewables and has now expanded to more comprehensive solutions linked to the electrical system. The other is oil, where PCR has a very long history: the company has been in the oil business since 1921,” he said.
He concluded: “We are not going to stop being an oil company. At the same time, the renewable energy business has its own separate team, and we want both teams to have projects and opportunities for growth.”
Brandi's journey: from Catriel to the PCR leadership
Brandi joined PCR in 2009. Her first destination was Colonia Catriel, where she worked in an oil area of the company in the province of La Pampa, within the Neuquén basin.
He then spent four years in Comodoro Rivadavia, where he was in charge of PCR's cement business. According to him, that period was key because it allowed him to lead a business unit and take responsibility for its financial results.
Towards the end of 2015 or the beginning of 2016, he returned to Buenos Aires with the mandate to create the renewable energy division. Until then, PCR had no activity in electricity: it was an oil and cement company.
Fueled by the RenovAr program, he traveled across Argentina with Daniel Fernández and Juan Aragone in search of projects. Ultimately, PCR acquired the Bicentenario Wind Farm from a developer. The executive counterpart in that transaction was Ariel Costanzo, who later joined the company.
Brandi led the renewable division until 2021. Then, Costanzo took over the management of that business unit.
For the CEO of PCR, one of the biggest motivations of his work is building projects from scratch.
“The most fun part is building new things. I think it’s something quite inherent in human nature: we all like to build something that didn’t exist before. Not just thinking up a strategy, but making it a reality,” he said.
He illustrated this point: “In renewables, this is very clear. You go to a field where there is nothing, and a year and a half later, there is a wind farm up and running. That possibility of seeing the concrete result of the work is very rewarding.”