Parque Solar El Quemado, in Las Heras, Mendoza, has become Argentina’s largest solar PV plant with 305 MW of installed capacity and is the first renewable project to enter operation under the RIGI large‑investment incentive regime. Developed by EMESA and built and operated by YPF Luz, the project represents around 11% of Argentina’s total installed solar capacity and can generate enough electricity to supply more than 233,000 households.
Project overview and technical facts
El Quemado occupies roughly 350–620 hectares in the Jocolí area, about 53 km north of Mendoza city, in one of the province’s highest solar‑radiation corridors. The plant uses approximately 511,000–518,000 bifacial Jinko modules, each rated at 700 Wp, mounted on single‑axis trackers to maximise yield and flatten the generation curve throughout the day. Construction began in early 2025 with an 18‑month schedule, and the park was energised and progressively commissioned between December 2025 and the first half of 2026.
The project was brought online in stages: the first 100 MW received commercial authorisation from CAMMESA in December 2025, followed by further blocks up to the full 305 MW, which are scheduled to reach full commercial operation in the first half of 2026. Electricity from El Quemado is injected into the SADI national grid and sold mainly to industrial and commercial offtakers through Argentina’s MATER market, diversifying YPF Luz’s renewable portfolio and reinforcing Mendoza’s position as a renewable hub.
Investment, cost per kW and LCOE context
YPF Luz reports a total investment of approximately USD 210–211 million, while provincial and media sources round this to USD 220 million for the full 305 MW. That implies an installed cost of roughly USD 689–721 per kW, which is significantly below many recent global benchmarks for utility‑scale solar, which often range from about USD 800 to 1,600 per kW in advanced markets.
The project has an estimated capacity factor of 31.4%, which is high by global solar standards and reflects both the quality of the resource in northern Mendoza and the design choices (bifacial modules plus tracking). At that capacity factor, the plant is expected to produce around 839 GWh per year, materially exceeding the consumption of Mendoza city plus neighbouring departments and reducing CO₂ emissions by well over 300,000 tons annually compared with conventional generation.
Against the backdrop of IRENA’s latest cost data, which show a global average LCOE for utility‑scale solar around USD 0.043/kWh in 2024, El Quemado’s combination of low capex and high capacity factor places its implied LCOE in a highly competitive USD 30–40/MWh band, assuming typical financing and O&M assumptions. That positions the project as one of the strongest new‑build options on Argentina’s system, undercutting most new fossil alternatives on a levelized‑cost basis, especially when fuel price volatility is considered.
Role of RIGI and regional impact
El Quemado is the flagship energy asset for the RIGI regime, which aims to attract large‑scale investment by offering tax stability, customs benefits, and more predictable rules for capital‑intensive projects. YPF Luz and provincial authorities are using this project as a proof‑of‑concept that Argentina can deliver GW‑scale renewable investments at globally competitive costs while leveraging local labor and supply chains.
For Mendoza specifically, the commissioning of El Quemado pushes the province’s solar capacity above 700 MW and accelerates its trajectory toward a 1 GW clean‑energy goal set by the current administration. The park is also a catalyst for adjacent industrial and logistics developments, given the availability of long‑term, low‑carbon power in one of Cuyo’s key corridors.
Solar + storage and peaker hybrids – ROI angle
From a pure capital‑cost and payback perspective, El Quemado, as a standalone solar plant, is extremely attractive: low capex per kW, no fuel costs, low O&M, and a high capacity factor together support a simple payback that can land in the mid‑single to high‑single‑digit years, depending on PPA pricing. However, revenue concentration in daytime hours and the lack of firm, dispatchable output introduce price‑risk and curtailment risk in high‑solar systems, which is where hybridisation becomes interesting.
Adding battery energy storage (for example, 2–4 hours at 50–100% of plant AC capacity) would lift total system capex by perhaps 30–70% but would also allow YPF Luz to arbitrage between low‑price midday generation and higher‑price evening peaks, capture capacity payments, and offer ancillary services. That typically lengthens simple payback relative to solar‑only but can improve project IRR and NPV over 20 years, especially as storage costs continue to decline and market designs begin to reward flexible, low‑carbon capacity.
By contrast, pairing El Quemado with gas‑fired peaking units would create a firm hybrid in which cheap solar is used whenever available, and gas fills the gaps, but exposes the portfolio to fuel‑price and carbon‑policy risk. Capex per kW for gas peakers can be comparable to or slightly below that of solar + storage for short durations, yet the resulting LCOE is often higher once fuel and low utilisation costs are included. For an asset like El Quemado, storage is likely to be the more structurally attractive firming option over the 20‑year horizon, particularly if Argentina’s market continues to push time‑of‑use pricing and capacity mechanisms that value decarbonised flexibility.
Table: El Quemado vs global new‑build benchmarks
| Metric / technology | El Quemado (Mendoza) | Typical global 2024–2025 ranges |
|---|---|---|
| Installed capacity | 305 MW | Varies; many utility solar plants 100–500 MW |
| Total investment | ~USD 210–220 million | Depends on size and market |
| Capex per kW | ~USD 689–721/kW | Solar PV ~USD 800–1,600/kW in many markets |
| Capacity factor (solar PV) | ~31.4% estimated | Many markets ~15–25%; best sites ~25–30%+ |
| Estimated annual generation | ~839 GWh/year | Size and resource dependent |
| Households supplied (equivalent) | >233,000 homes | Not directly comparable |
| Global average solar PV LCOE 2024 | Implied ~USD 30–40/MWh for El Quemado | ~USD 43/MWh global average in 2024 |
| Fossil new‑build LCOE | Not applicable (renewable) | Often higher than new solar in recent IRENA data |
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Erick Arroqui Storni is a Sales and Marketing Specialist at Gateway to South America, helping international investors navigate Argentina’s real estate market. He brings local insight into one of the country’s fastest-growing regions, driven by major mining investment and its impact on land values and development.
With a degree in Business Administration and experience in natural resources and technology, Erick has conducted technical due diligence on land and mining assets. A dual Argentine-German citizen, he is fluent in Spanish, English, and German, and works effectively across cultures to connect foreign buyers with emerging opportunities in Argentina’s interior.
