Argentina, like most Latin American countries, has historically wrestled with energy supply issues, especially during the peak summer and winter months. This winter was no exception, as a gas shortage prompted the federal government to cut service to over 300 large industrial customers in order to ensure a steady supply to residential customers battling the cold.

Out of this most recent energy shortage came some positive developments including U.S.-based Apache supplying Pampa Energia with 800,000 cubic meters of natural gas per day and the announcement of a $47 million pipeline that will carry 27 million cubic meters a day from Bolivia to Salta.

But perhaps the most encouraging news regarding Argentina’s energy future came courtesy of Bloomberg New Energy Finance’s Latin America Clean Energy Market Outlook H1 2010. The report says Latin America is “ready for take-off” when it comes to renewable energy. ”

The report notes that political stability and recent economic growth have combined to create an unprecedented demand for energy across Latin America,” writes Bloomberg’s Ethan Zindler adding, “Since 2005 when investment was $2.9bn, investment surged to $18.1bn in 2008. The region saw a pull-back in 2009 to $16bn due to the recession but is now poised to get back on track.”

The report says Argentina will be a leader in wind, already has systems in place for biofuels and holds great potential for biomass development. Given all these factors, “Argentina could be the Saudi Arabia of renewable energy,” says the president of the Argentina Renewable Energy Chamber, Carlos Saint James. Argentina is now the fifth largest producer of biodiesel, behind Germany, the US, France and Brazil, according to Power-Gen Worldwide. (Full article)