50.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	50.0
Equity

* These investment figures are indicative

Project Outcome: Environmental effects: The Project will support Argentina’s efforts to reduce GHG emissions by enabling greater use of renewable energy in an energy matrix still dominated by fossil fuels, and energy-related CO2 emissions. Aligned with the government’s commitment to cap emissions and reach Net Zero by 2050, the Project contributes through a 150 MW BESS that will enhance grid flexibility and enable the reliable integration of intermittent renewable generation, together with the acquisition of the shares of the hydropower plant expected to improve operational efficiency. The sponsor, Argentina’s largest private generator with 6.7 GW across thermal, hydro, wind, solar, provides strong operational capacity and extensive experience in a challenging macroeconomic context. Market Creation Outcome: Sustainability: The Project will strengthen the sustainability of Argentina’s power sector by demonstrating the country’s first utility-scale BESS—a critical enabler of renewable integration at a time when transmission bottlenecks, wind curtailment, and climate-driven hydrological variability constrain clean-energy expansion. With natural gas representing almost half of domestic generation and persistent grid congestion, the Project complements reforms under RenovAr and MATER and supports the government’s target of 30% renewables by 2030. By supporting the 150 MW Puerto Nuevo BESS—the largest project awarded in the 2025 “AlmaGBA” auction—the Project is expected to catalyze further private investment in storage and enhance grid reliability, reinforcing the replicability of the model as over 600 MW of additional BESS capacity advances toward commissioning.

Financial Additionality: IFC will provide a longer tenor financing than what is currently available in Argentina’s infrastructure market. This structure better matches project cash flows, strengthens the Company’s debt profile, and expands access to long-term funding in a challenging macroeconomic environment. IFC also brings strong mobilization additionality. Between 2020 and 2023, FX restrictions required corporates to refinance 60% of foreign-currency debt repayments, a rule not applied to DFI-sourced debt. Although this requirement has lapsed, capital controls persist and commercial banks continue to require a DFI umbrella for cross-border lending. The Project is expected to mobilize US$250 million alongside IFC’s US$50 million—achieving a 1:5 ratio in a market where long-tenor hard-currency funding remains scarce. IFC’s balance sheet and B-loan platform help re-open access to Argentina for international lenders, reducing perceived country risk and supporting investor confidence at a critical moment in the reform process. Engagement with a strong sponsor such as CEPU reinforces the role of credible private actors in rebuilding market trust. Non-financial Additionality: IFC will also provide standard-setting support by strengthening the Company’s capacity to manage environmental and social risks in line with IFC Performance Standards through the implementation of a detailed ESAP.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Female Direct Employment (#) - Operations and Maintenance	Female Employment (#) [Actual]		Not Available	Not Available	Not Available

The Project entails the acquisition and continued operation of the existing hydroelectric power plant, along with the construction and commissioning of a battery energy storage system by end-2026. This is a Category B project according to IFC's Policy on Environment and Social Sustainability (2012). Based on information reviewed by IFC, the proposed project will have limited adverse E&S impacts that are few, site specific, largely reversible and readily addressed through existing mitigation measures and good international industry practices (GIIP). Key E&S risks and issues include: effective implementation of the corporate ESHS standards procedures for HPP operation and maintenance and BESS construction & opration; emergency planning are response management ; OHS & labor conditions, including for contractors; BESS-related supply chain and L&FS risks ; Gender-Based Violence and Harassment (GBVH); and CEPU’s stakeholder engagement activities related to the management of E&S aspects and its grievance mechanism. The structural safety of the HPP was reviewed by independent specialist in 2025 , and the overall conclusion was that there are no obvious and immediate concerns on the safety status of the dam.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.