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 for energy in Argentina should be covered with renewable sources of energy(1). To meet such objective, WEM (Wholesale Electricity Market)’s GU (Large Users) and CAMMESA (Compañía Administradora del Mercado Mayorista Eléctrico or the Argentine Wholesale Electricity Market Clearing Company) should cover 8% of their demand with such sources by December 31, 2017, the percentage rising every two years until this objective is met. The agreements entered with GU and GUDI (Large Distribution Company Users) may not have an average price exceeding US$113/MWh.
Additionally, several incentives are established to encourage renewable energy projects, including tax benefits (advance VAT return, accelerated depreciation on the income tax return, import duty exemptions, etc.) and the creation of the FODER (Fondo para el Desarrollo de Energía Renovables or Fund for the Development of Renewable Energies), which is destined, among other objectives, to the granting of loans, capital contributions, etc. for the financing of these projects.
Note: (1) As from December 2016, CHs (Hydroelectric Power Plants) with a power capacity lower than 50 MW are classified as renewable sources of energy.