In the context of the first SOUL GBA energy-storage tender, I found this Freeths article particularly interesting. It clearly summarises the main risks faced by any BESS (Battery Energy Storage System) project—especially in the Argentine context.
The scope of the SOUL GBA tender
The SOUL GBA tender represents a new scenario for the sector. It received 27 projects totalling more than 1,347 MW—well above the initial 500 MW requirement. This will be the first time these systems are contracted at scale in critical nodes across AMBA, with the aim of strengthening reliability during peak demand and reducing outages.
But moving forward in this field requires recognising and managing a series of key risks.
Key risk analysis for BESS projects
Technical risks
Battery cyclic degradation directly reduces usable capacity, driving up operating costs. Failures can also occur in control systems, with immediate impacts on efficiency and safety.
Financial risks
Projects may face cost overruns, construction delays or technical underperformance. In addition, energy-price volatility can challenge projected revenues.
Operational risks
Supply-chain interruptions are a material concern. In a global market, dependency on specific suppliers is a central factor. Inadequate maintenance can lead to unexpected failures and downtime.
Regulatory and political risks
Changes in energy regulation can undermine predictability and profitability. Political instability adds another layer of uncertainty for project delivery and long-term operations.
Environmental risks
There are challenges related to battery waste management and recycling—an issue already firmly on the environmental and social impact agenda.
This risk map is only a starting point for those currently evaluating BESS investments or developments in Argentina. The scale and potential impact of the SOUL GBA tender mark a milestone for the sector, while also fuelling the debate on how best to manage these challenges amid the structural transformation of the power system.
For those wishing to explore the topic in more depth, I will share the full article.
