In 2015 the Argentine Congress passed Law No. 27,191 which introduced substantial amendments to the Federal Promotional Regime for the Use of Renewable Energy for Power Generation, previously approved by Law No. 26,190.
One of Law No. 27,191 main highlights was to amend the short- and long-term renewable consumption objectives, establishing an 8 per cent target by 31 December 2017 and a 20 per cent target by 31 December 2025, with intermediate targets. The objective for 31 December 2023, is 18 per cent.
Additionally, pursuant to Law No. 27,191 large users (ie, consumers with a demand equal to or larger than 300kW) must source a minimum level of their electricity consumption from renewable sources. To meet this requirement large users have the following alternatives:
Law No. 27,191 also created different tax incentives and exemptions. However, the economic impact of these benefits has been reduced substantially and at present is no longer a determinant factor for new renewable energies projects.
Finally, it was established that (i) power from intermittent renewable resources enjoy the dispatch priority given to run-of-the-river hydropower plants (ie, the highest priority under the Regulatory Framework); and (ii) neither renewable energy self-generation plants nor plants that generate energy from renewable sources to be sold under PPAs need have dedicated back-up capacity.
Corporate PPAs are not a new phenomenon in Argentina; on the contrary, the power regulatory framework in place since 1992 provides rules to encourage large users to enter into PPAs directly with power generators. However, PPA regulations in the past have only contemplated the existence of conventional sources (mostly thermal power stations).
For this reason, at first
Corporate PPAs do not have to be approved or authorised by any government agency
Access to existing transmission capacity must be requested by the project''s developer to the corresponding transmission utility including different information; primarily, technical studies of the transmission system providing evidence of the feasibility of the request.
Following this application, both CAMMESA and the relevant utility must analyse the technical feasibility of the request. Their assessment will then be informed to ENRE, and a public hearing might be required before the access to transmission capacity permit is granted.
Notwithstanding the general proceeding to secure the transmission capacity permit and the rule pursuant to which renewable energies enjoy the highest dispatch priority, because of existing restrictions to transmission capacity, Resolution 281 established a mechanism to award ''first dispatch priority'' (ie, a kind of preference sub-ranking among renewable projects).
In essence, this mechanism establishes that ''first dispatch priority'' shall be requested to CAMMESA and, if granted, to retain this priority, the project''s developer would have to pay a quarterly fee of US$500 per MW of installed capacity until the project reaches its commercial operation date (COD).
Hydropower is very important for Argentina. Hydroelectric installed capacity is more than 10,800MW and generally represents 30 per cent of the total annual consumption of electricity.
Hydroelectric power plants include two binational projects that are subject to a different legal framework
Among the local projects, there are several power plants that were privatised by the government during the 90''s within the programme that privatised the majority of the existing state-owned energy assets following the enactment of the Law No. 24,065.
The Secretary of Energy recently determined that the concessionaires of the three hydroelectric power plants with agreements terminating in 2023 will continue to operate the power plants for up to one additional year during a transition period.
It is unclear if the government will reassume the operation of the hydroelectric power plants after the termination of the relevant concession agreements or if it is going to promote a public bidding to award such operation to new concessionaires.
To take advantage of the momentum behind hydrogen the Secretary of Energy prepared a Bill for the Promotion of Hydrogen with Low Emissions of Carbon and other Greenhouse Gases (the Hydrogen Bill), which is currently under analysis by the Chamber of Deputies
Based on information from 2022, the average price charged by CAMMESA to large users was US$88.7 per MW-h. Although prices are not publicly available, MATER prices were approximately US$ 65 per MW-h during 2022.
This price difference, coupled with challenges faced by renewable energy generators to secure financing, have led to the execution of many prepaid PPAs. This type of agreements is very similar to traditional PPAs, with one significant difference: instead of purchasing electricity over time, large users purchase electricity upfront and help with the project''s financing.
Marval regularly advises both independent power producers and large users in connection with the negotiation of prepaid corporate renewable PPAs and one of the most complex issues with this type of agreement is the guarantee scheme because of the challenges for long-term agreements created by recurrent macroeconomic crisis.
Although the demand for corporate renewable PPAs continues to be high, the development of certain renewable projects at present is being stopped because of restrictions to transmission and transformation capacity.
About Energy storage for load shifting argentina
As the photovoltaic (PV) industry continues to evolve, advancements in Energy storage for load shifting argentina have become critical to optimizing the utilization of renewable energy sources. From innovative battery technologies to intelligent energy management systems, these solutions are transforming the way we store and distribute solar-generated electricity.
When you're looking for the latest and most efficient Energy storage for load shifting argentina for your PV project, our website offers a comprehensive selection of cutting-edge products designed to meet your specific requirements. Whether you're a renewable energy developer, utility company, or commercial enterprise looking to reduce your carbon footprint, we have the solutions to help you harness the full potential of solar energy.
By interacting with our online customer service, you'll gain a deep understanding of the various Energy storage for load shifting argentina featured in our extensive catalog, such as high-efficiency storage batteries and intelligent energy management systems, and how they work together to provide a stable and reliable power supply for your PV projects.
Related Contents
