IFC Invests US$300M In Central Puerto To Boost Argentina’s Grid With Hydropower & 150 MW Battery Storage

The International Finance Corporation (IFC), a member of the World Bank Group, has announced a strategic investment in Central Puerto S.A., a leading electricity generation company in Argentina. The investment aims to develop projects that will enhance the reliability and flexibility of the national power system, facilitate greater integration of renewable energy, and improve the country’s overall energy competitiveness.

The financing package, valued at US$300 million, will support the acquisition of shares in the 1,440-megawatt Piedra del Águila hydropower plant. This plant, considered critical for the stability of Argentina’s national grid, was awarded in December 2025 as part of the privatization of the Limay River hydropower plants.

In addition, the investment includes the installation of the 150 MW Nuevo Puerto battery energy storage system (BESS), known as the AlmaGBA project. This represents the largest utility-scale energy storage contract awarded in Argentina to date. The project is expected to optimize power system operations by smoothing demand fluctuations—storing energy during off-peak periods and dispatching it during peak demand—thereby reducing system risks, particularly during summer and winter peak hours in the Greater Buenos Aires Area (GBA).

Alfonso García Mora, IFC Vice President for Europe, Latin America, and the Caribbean, emphasized the broader impact of the project, stating, “By promoting greater private sector participation, this project helps attract capital, strengthen the market, and create jobs, supporting sustainable economic growth. These investments are key to supporting the reform and privatization processes that Argentina is advancing in the energy sector.”

Fernando Bonnet, CEO of Central Puerto, highlighted the significance of the investment for the company and the country, saying, “This financing represents a strong endorsement of Central Puerto’s long-term strategy and our commitment to the development of Argentina’s power system. It will allow us to consolidate critical assets and incorporate innovative solutions, strengthening grid reliability and supporting the integration of renewable energy in line with the reforms being implemented by the country.”

The investment directly supports Argentina’s ongoing electricity market reforms. It is expected to stabilize the grid, reduce system costs, and improve the country’s competitiveness and productivity by attracting private investment and mobilizing large-scale international capital.