For generation not covered by contracts, through Resolutions No. 19E/2017 of the SEE (Secretariat of Electric Energy) and 1/2019 of the SRRYME (Secretariat of Renewable Resources and Electricity Market), from February 1, 2017 to January 31, 2020, a US$-denominated remuneration scheme was stablished, which provided for a remuneration for power capacity and non-fuel energy, as well as the elimination of remunerations in the form of receivables. It is worth mentioning that as from March 1, 2019, reductions were applied to remuneration, and a reduction coefficient was incorporated to the power capacity remuneration, according to the unit’s utilization factor of the unit.

Later, Resolution No. 31/2020 of the SE (Secretariat of Energy), converted the entire remuneration scheme to the local currency at a FX (Foreign Exchange) of AR$60/US$ with lower power capacity remuneration, effective as from February 1, 2020. An additional remuneration was incorporated in the hours of high thermal dispatch and an update factor was established as from the second month of its application, which follows a formula consisting of 60% CPI (Consumer Price Index) and 40% IPIM (Wholesale Domestic Price Index). However, the SE, through the Note NO-2020-24910606-APN-SE#MDP, instructed CAMMESA (Compañía Administradora del Mercado Mayorista Eléctrico or the Argentine Wholesale Electricity Market Clearing Company) to postpone until further decision the application of said update factor.

Regarding the fuel supply for power plants, the purchase and dispatch of fuels remained centralized in CAMMESA until October 2018, excluding generators with Energía Plus contracts. In November 2018, Resolution No. 70/2018 of the SGE (former Government Secretariat of Energy) amended SE Resolution No. 95/2013, authorizing power generators, co-generators and self-generators within the WEM (Wholesale Electricity Market) to acquire fuels of any kind required for own power generation, originally for units with remuneration scheme under SEE Res. No. 19E/2017, and later being extended to units with differential remuneration. The cost of generation with own fuels would be valued according to the mechanism for the recognition of CVP (Variable Production Cost) standardized by CAMMESA. It should be noted that for agents which ‘did not or couldn’t’ make use of such capacity, CAMMESA continued being in charge of the commercial management and the dispatch of fuels. However, through Resolution No. 12/19 of the MDP (Ministry of Productive Development), as from December 30, 2019, SGE Resolution No. 70/18 was abrogated and the centralization of fuel procurement and supply in CAMMESA was restored, a measure that does not cover generators with Energía Plus contracts.

On the other hand, as a result of the state emergency in the national electricity sector, on March 22, 2016 the SEE through Resolution No. 21/16 launched a call for tenders for new thermal power generation capacity with the commitment to making it available through the WEM for the 2016/2017 summer, 2017 winter and 2017/2018 summer periods. Moreover, in line with the measures seeking to increase the electric power generation offer, on May 10, 2017 the SEE issued Resolution No. 287/17 launching a call for tenders for co-generation projects and the closing to combined cycles over existing equipment.

Regarding renewable energies, in October 2015, Law No. 27,191 (regulated by Executive Order No. 531/16) was passed, which amends Law No. 26,190 on the promotion of renewable sources of energy. Among other measures, it provided that by December 31, 2025, 20% of the total demand of energy in Argentina should be covered with renewable sources of energy.