On February 27, 2020, Resolution No. 31/20 of the SE (Secretariat of Energy) was published in the Public Gazette, which modified certain aspects of the remuneration scheme set forth by Resolution No. 1/19 of the SRRYME (Secretariat of Renewable Resources and Electricity Market), effective as from February 1, 2020. The new Resolution converts the entire remuneration scheme to the local currency at a FX (exchange rate) of AR$60/US$ and establishes an update factor 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).
Thermal Power Generators
SE Resolution No. 31/20 reduces the power capacity remuneration, whether base or guaranteed, depending on the technology used. However, for CTs (Thermal Power Plants) with a total installed power capacity lower than or equal to 42 MW, the base power capacity values set out by SRRYME Resolution No. 1/19 remain in effect.
| Technology / Scale | Capacity Base Price (AR$/MW-month) |
Variation vs. SRRYME Resolution No. 1/19* |
|---|---|---|
| Large CC (Combined Cycle) Capacity > 150 MW | 100,650 | -45% |
| Small CC Capacity ≤ 150 MW | 112,200 | -45% |
| Large ST (Steam Turbine) Capacity > 100 MW | 143,550 | -45% |
| Small ST Capacity ≤ 100 MW, Internal Combustion Engines Capacity > 42 MW |
171,600 | -45% |
| Large GT (Gas Turbine) Capacity > 50 MW | 117,150 | -45% |
| Small GT Capacity ≤ 50 MW | 151,800 | -45% |
| Small CC Capacity ≤ 15MW | 204,000 | – |
| Small ST Capacity ≤ 15MW | 312,000 | – |
| Small GT Capacity ≤ 15MW | 276,000 | – |
| Internal Combustion Engines Capacity ≤ 42 MW | 312,000 | – |
Note: * It assumes a FX of AR$60/US$.
As regards the remuneration for the offered guaranteed power capacity, the following scheme remains in effect:
| Period | Capacity Base Price (AR$/MW-month) |
Variation vs. SRRYME Resolution No. 1/19* |
|---|---|---|
| Summer (December – February) and Winter (June – August) | 360,000 | -14% |
| Other (March – May and September – November) | 270,000 | -18% |
| Internal Combustion Engines ≤ 42 MW, summer/winter | 420,000 | – |
| Internal Combustion Engines ≤ 42 MW, other | 330,000 | – |
Note: * It assumes a FX of AR$60/US$.
As SRRYME Resolution No. 1/19, SE Resolution No. 31/20 provides for the application of a coefficient arisen from the unit’s average utilization factor during the last twelve months to the power capacity remuneration. Although the formula remained unchanged for internal combustion engines ≤ 42 MW, in all other cases, if the usage factor is lower than 30%, 60% of the power capacity payment is collected.
Regarding the additional remuneration in the HMRT (hours of high thermal dispatch), which consist of the 50 recorded hours with the highest thermal generation dispatch each month, grouped in two blocks of 25 hours each, the following will be applied to the average generated capacity during such hours:
| Period, in AR$/MW-HMRT | First 25 HMRT hours | Second 25 HMRT hours |
|---|---|---|
| Summer (December – February) and Winter (June – August) | 45,000 | 22,500 |
| Other (March – May and September – November) | 7,500 | – |
As regards the remuneration for generated and operated energy, they remained unchanged in US$ at a FX of AR$60/US$, but set at AR$240/MWh with natural gas, AR$420/MWh with fuel oil, AR$600 with biofuels (except for internal combustion engines, AR$720/MWh) and AR$720/MWh with mineral coal. The remuneration for operated energy was set at AR$84/MWh.
Hydro Power Generators
SE Resolution No. 31/20 adjusted the capacity remuneration and added a new HMRT remuneration. The 1.05 factor over the power capacity to compensate the impact of programmed maintenance remained unchanged, as well as the 1.20 factor for units maintaining control structures on river courses and not having an associated power plant.
| Scale | Capacity Base Price (AR$/MW-month) |
Variation vs. SRRYME Resolution No. 1/19* |
|---|---|---|
| Large HI (Hydroelectric Plants) Capacity > 300 MW | 99,000 | -45% |
| Medium HI Capacity > 120 ≤ 300 MW | 132,000 | -45% |
| Small HI Capacity > 50 ≤ 120 MW | 181,500 | -45% |
| Renewable HI Capacity ≤ 50 MW | 297,000 | -45% |
| Large Pumped HI Capacity > 300 MW | 99,000 | +10% |
| Medium Pumped HI Capacity > 120 ≤ 300 MW | 132,000 | -12% |
Note: * It assumes a FX of AR$60/US$.
As regards the HMRT additional remuneration, the following will be applied to the average operated power capacity during such hours:
| Scale | Capacity HMRT Price AR$/MW-HMRT |
|---|---|
| Large HI Capacity > 300 MW | 27,500 |
| Medium HI Capacity > 120 ≤ 300 MW | 32,500 |
| Small HI Capacity >50 ≤ 120 MW | 32,500 |
| Renewable HI Capacity ≤ 50 MW | 32,500 |
| Large Pumped HI Capacity > 300 MW | 27,500 |
| Medium Pumped HI Capacity > 120 ≤ 300 | 32,500 |
Weighted by the following coefficients:
| HMRT | December – February, June – August | Other |
|---|---|---|
| First 25 HMRT hours | 1.2 | 0.2 |
| Second 25 HMRT hours | 0.6 | – |
The prices for generated and operated energy remained unchanged in US$ at a FX of AR$60/US$, though set at AR$210/MWh and AR$84/MWh, respectively. The remuneration for operated energy should correspond with the grid’s optimal dispatch. The provision does not indicate, as it does for thermal generators, which would be the consequence otherwise.
Other Considerations
For energy generated from any unconventional source, SE Resolution No. 31/20 provides for a single remuneration value of AR$1,680/MWh, which equals the previous remuneration converted at a FX of AR$60/US$, or 50% of this value if it is generated prior to commercial commissioning.
Furthermore, SE Resolution No. 31/2020 provides for the application of all receivables accrued in favor of generators for the settlement against the repayment of loans for the execution of overhauls, and sets a discount scheme in the generator’s revenues equivalent to the maximum between AR$60/MWh, or AR$42,000/MW-month for the unit’s actual availability. It is worth highlighting that all overhauls financing owed by Pampa were settled under the Agreement for the Regularization and Settlement of Receivables with the WEM (Wholesale Electricity Market).
Implementation Criteria for SE Resolution No. 31/20
CAMMESA classifications for our legacy units are detailed below:
| Source | Power Plant | Unit | Technology | Size | Scale |
| Thermal | CTLL (Loma de la Lata) | LDLAGT01 | GT | Large | > 50 MW |
| LDLAGT02 | GT | Large | > 50 MW | ||
| LDLAGT03 | GT | Large | > 50 MW | ||
| LDLAGT04(1) | GT | Large | > 50 MW | ||
| CTG (Güemes) | GUEMST11 | ST | Small | ≤ 100 MW | |
| GUEMST12 | ST | Small | ≤ 100 MW | ||
| GUEMST13 | ST | Large | > 100 MW | ||
| CTGEBA (Genelba) | GEBAGT01 | CC | Large | > 150 MW | |
| GEBAGT02 | |||||
| GEBAST01 | |||||
| GEBAGT04(2) | GT | Large | > 50 MW | ||
| CPB (Piedra Buena) | BBLAST29 | ST | Large | > 100 MW | |
| BBLAST30 | ST | Large | > 100 MW | ||
| Hydro | HIDISA (Diamante) | ADTOHI | HI | Medium | > 120 MW ≤ 300 MW |
| LREYHB | Pumped HI | Medium | > 120 MW ≤ 300 MW | ||
| ETIGHI | Renewable HI | – | ≤ 50 MW | ||
| HINISA (Los Nihuiles) | NIH1HI | HI | Small | > 50 MW ≤ 120 MW | |
| NIH2HI | HI | Small | > 50 MW ≤ 120 MW | ||
| NIH3HI(3) | HI | Small | > 50 MW ≤ 120 MW | ||
| HPPL (Pichi Picún Leufú) | PPLEHI | HI | Medium | > 120 MW ≤ 300 MW |
Notes:1 Only 26 MW of the unit apply. 2 It was applied until the commissioning of Genelba Plus’ CC, on July 2, 2020. 3 A 1.20 coefficient applies on remuneration.
GT = gas turbine
ST = steam turbine
CC = combined cycle
HI = hidroelectric
In the case of CTG’s GUEMTG01 and CTGEBA’s GEBATG03 units, pursuant to Section 6 of SE Resolution No. 482/15 and with the agreement of Energía Plus power generators, both the energy delivered to the spot market and the available power capacity not committed under the Energía Plus contracts in force during each period are remunerated based on the items set out for legacy capacity, the cost of the fuel provided by CAMMESA (Compañía Administradora del Mercado Mayorista Eléctrico or the Argentine Wholesale Electricity Market Clearing Company) being excluded from the transaction.