Argentina Launches $800 Million Tender for AMBA I Transmission Expansion Project

en.Wedoany.com Reported - The Energy Secretariat (Secretaría de Energía) of Argentina's Ministry of Economy has launched a domestic and international public tender for the expansion of the AMBA I transmission system, covering the construction, operation, and maintenance of the project. The project is expected to involve an investment of approximately $800 million.

According to the plan, the project will involve the construction of approximately 270 kilometers of new transmission lines across three voltage levels: 500 kV, 220 kV, and 132 kV. It also includes the construction of a new Plomer substation at 500/220/132 kV, the installation of a STATCOM reactive power compensation system, and the connection to the grids of local distribution companies. The Energy Secretariat estimates that once these facilities are operational, the demand capacity that the Buenos Aires Metropolitan Area power system can meet will increase by approximately 2,000 MW—a region that concentrates about 40% of Argentina's national electricity demand.

The lag of transmission infrastructure behind electricity demand growth is one of the reasons driving the government to promote this project. Official data shows that over the past decade, residential electricity demand in Argentina has grown by 20%, while the extension of high-voltage transmission lines has grown by only 8%, leading to grid bottlenecks and supply constraints. AMBA I had previously been listed as one of the priority projects under the National Transmission Expansion Plan (Plan Nacional de Ampliación del Transporte Eléctrico). In July 2025, this project, along with the Río Diamante–Charlone–O'Higgins 500 kV line and the Puerto Madryn–Choele Choel–Bahía Blanca line, was selected as one of the first batch of expansion projects, all to be developed under a private investor concession model.

The official documents for AMBA I also list the expansion of the 25 de Mayo substation, as well as upgrades to the Atucha, Ezeiza, General Rodríguez, Mercedes, Luján, Zapalorto, and Pantanosa substations and associated lines. The project's environmental and social consultation process has recently been completed.

The Plomer substation is one of the core components of the expansion project. According to Transener's technical documents, the substation will be equipped with two 855 MVA 500/220 kV transformers, one 450 MVA 500/132 kV transformer, 2×125 MVAr shunt compensation devices, and a ±250 MVAr STATCOM, while also connecting to the 220 kV and 132 kV grids.

Under the tender plan, the investment, construction, operation, and maintenance of the project will all be undertaken by the private sector under an engineering concession model. Official information indicates that the project is advancing a structural arrangement backed by a guarantee from the Inter-American Development Bank (IDB), and winning bidders may also apply to include their investment under the RIGI (Large Investment Incentive Scheme).

The tender schedule shows that the submission and opening of Envelope No. 1 (technical and financial qualification documents) is set within 120 calendar days after the publication of the tender notice, corresponding to the first half of December 2026; the opening of economic bids and the award are expected in early 2027, followed by the signing of the concession contract. Construction will be carried out in two phases, with a maximum duration of 52 months.

AMBA I is the first project launched under the National Transmission Expansion Plan. With a total investment exceeding $6.6 billion, the plan will also add 5,610 kilometers of 500 kV lines to expand the capacity of the Argentine Interconnection System (SADI) and alleviate transmission constraints between generation centers and consumption centers. The priority project list covers multiple corridors, aimed at improving the evacuation conditions for new renewable energy in regions such as Cuyo, among others.