Argentina has established a long-term state policy for energy development, which encourages the use of non-fossil fuels suitable for environmental protection and economic sustainability. In pursuance of this goal, the Ministry of Energy and Mining launched a set of tender proceedings for the procurement of electrical energy from renewable sources. Following the success of Rounds 1 and 1.5, Round 2 was recently published with the aim of adding 1,200 megawatts of renewable energy to the interface system.
In order to unify various national regulations, the National Congress is analysing the Bill for the Promotion of Distributed Energy Generation from Renewable Sources. The bill's main aims are to unify inconsistent provincial laws in order to reduce local bureaucratic red tape, combine technical and security standards, simplify permit requirements and reduce lengthy review procedures in order to ensure timely installation and avoid added costs.
The national and provincial governments recently signed the Federal Energy Agreement. The agreement aims to develop and foster the implementation of energy policies at the provincial and federal level. The cooperation of the national and provincial governments is key to a long-term energy policy. The regulatory framework introduced for the different jurisdictions will ensure quality of service and help to develop the national energy network.
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.