Following the deregulation of the Argentine power sector in 1992 there has been a significant increase in private participation, which has culminated in what some see as a slight over-development of power stations in the country, greatly increasing competition. The result of this continual drop in prices has meant that sponsors and developers have become increasingly concerned regarding profitability and are now finding more innovative ways to market their product.
Power generators sell electricity to suppliers through a bid at a pool system.
Privatisation has continued to flourish in overhead transmission lines, where Transener is the largest player. There are over 15,000km now in private hands. A number of international investors are playing major roles in the development of the Argentine energy sector. US companies CMS, Dominion, Duke and AES all hold substantial interests, as do Chilgener and Endesa of Chile. AES, one of the more prolific developers in Latin America, has continued to play a dominant role in Argentina, beginning development as early as 1993, when the company bought the 650MW San Nicol s power plant in the first privatisation.