enes



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.