The government has amended the Renewable Energy Act and issued a regulatory decree, which includes new promotional schemes to foster investment in renewable energy projects and reduce Argentina's dependency on fossil fuels. This update examines the decree, the benefits granted by the federal government in that regard and the terms and conditions of the first renewable energy project contest due to be launched by the Ministry of Energy.
The recently elected government hopes to tackle the energy deficit and reduce the impact of subsidies on the public budget. In that regard, the Energy and Mining Ministry aims to suspend the government's utility bill subsidy system, include renewable energy in the energy matrix to reduce dependence on hydrocarbons, develop nuclear energy and increase domestic production of hydrocarbons through foreign investment.
The Argentine electricity sector comprises generation, transport and distribution services, which are carried out by companies and state-owned enterprises. Investment is required to satisfy demand for electricity, which has increased over the last decade. To address a fall in private investment, the government has launched special schemes to increase generation and improve transport and distribution facilities.