Privatization of Energía Argentina S.A. – Sale of shares in CITELEC

On April 25, 2025, Decree No. 286/2025 (“Decree 286”) was published in the Official Gazette, authorizing the full privatization of Energía Argentina S.A. (“EA”) and the sale of its equity interest in CITELEC.

Decree 286 foresees that EA will be privatized in stages, through the separation of the activities and assets of its different business units, ensuring that the performance of services and works currently under EA’s scope is not interrupted.

Thus, with the approval of the sale of EA’s shares in CITELEC, the first stage of EA’s privatization has begun.

EA holds 50% of the shares of CITELEC, a company that is the controlling shareholder of TRANSENER, which in turn holds 99.9% of the shares in TRANSBA (the remaining 0.1% is held by CITELEC).

TRANSENER is the extra-high voltage power transmission utility operating nationwide; TRANSBA, in turn, is the utility for trunk power transmission in the Province of Buenos Aires.

The sale of EA’s shares in CITELEC will be carried out through an international and national public bidding process, pursuant to Articles 17(2) and 18(2) of the State Reform Law No. 23,696, as amended.

The Ministry of Economy, with the involvement of the Special Temporary Executive Unit for the Transformation of State-Owned Companies (ATEP), will issue the necessary regulations to implement  Decree 286.

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For further information, please contact Nicolás Eliaschev, Javier Constanzó, Federico Otero, Julián Razumny, Francisco Molina Portela, Camila Evangelista, Milagros Piñeiro, Macarena Becerra, Inés Espina Rawson, Victoria Barrueco, and/or Manuel Crespi.

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Privatization of Hydropower facilities

On April 10, 2025, the Government of Argentina published Decree 263/2025 (“Decree 263”), which advances the sale process of the following companies: (i) Alicurá Hidroeléctrica Argentina S.A., (ii) Chocón Hidroeléctrica Argentina S.A., (iii) Cerros Colorados Hidroeléctrica Argentina S.A., (iv) Piedra Del Águila Hidroeléctrica Argentina S.A., (v) Cerros Colorados Hidroeléctrica Argentina S.A. and (vi) Piedra Del Águila Hidroeléctrica Argentina S.A. (the “Companies”). These Companies are currently owned by Energía Argentina S.A. (“EA”) (98%) and Nucleoeléctrica Argentina S.A. (“NASA”) (2%). Both EA and NASA have been subject to privatization pursuant to Article 7 and Annex I of Foundations Law.

Decree 263 establishes a period of fifteen (15) days since its publication to launch a National and International Public Bidding process for the sale of the controlling shareholding in the Companies (the “Call for Bids”), currently held by EA and NASA.

The Call for Bids will be carried out by both the Agency for the Transformation of State-Owned Companies (Agencia de Transformación de Empresas Públicas) and the Secretary of Energy.

Decree 263 builds upon Decrees 718/2024 and 895/2024, which had initiated the privatization process of the Companies.

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For additional information, please contact Nicolás Eliaschev, Javier Constanzó, Daiana Perrone, Milagros Piñeiro, Macarena Becerra, Victoria Barrueco and/or Manuel Crespi.

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Approval of LNG Export Procedure

On April 4, 2025, the Secretary of Energy published Resolution 145/2025, which approved the Liquefied Natural Gas Export Procedure (the “Procedure” and “LNG,” respectively). This measure was implemented in the framework of article 2 of Annex II of Decree 1057/2024 (see our comments on the decree here), which established that the Secretary of Energy would regulate the applicable procedure for LNG exports.

1. LNG export notification

According to the Procedure, companies interested in exporting LNG must submit an application, providing information regarding projected availability, reserves and production capacity for at least five (5) years as of the submission, maximum export LNG volumes, proof of filing with the Large Investments Incentive Regime (“RIGI”, for its acronym in Spanish) -if applicable-, and technical feasibility of the project. The Liquid Fuels Undersecretary shall analyze the information and issued observations or request additional information within ten (10) business days as of the date of submission. The Secretary of Energy may issue observations on the application -within one hundred and twenty (120) business days-, based on insufficient natural gas availability for the country or inaccuracies in the filing. The applicant shall have thirty (30) business days to rectify its application and once the observations are resolved, the Secretary of Energy will issue the certificate of “LNG Free Export Authorization”.

2. LNG export authorization

This authorization shall indicate the term of the exports, the LNG volumes and the frequency of reports to be required by the authority. The authorized company shall report, no less than ninety (90) days prior the first export, the volumes and prices, the registration as a storage operator with the Natural Gas Storage Registry of the Republic of Argentina (“RAGNar”) and submit proof of authorization with the Customs Registry System.

LNG exports will be authorized on a firm basis -non-interruptible- for a period of thirty (30) years as of the commissioning date of the liquefaction plant (including expansions or later stages). Provided that the required availability is periodically confirmed, the exporter shall have the right to export LNG on a continuous basis, without interruptions, restrictions or reductions, and shall have access to production, transport, processing and storage of natural gas to carry out LNG exports.

3. Exporter's duties

LNG exporters must ensure ongoing gas availability and prove within six (6) months prior to the current availability accreditation expires, that they have sufficient gas to cover the following five (5) years. Exporters must also report any changes regarding the information submitted in the application.

4. Term and assignment of authorization

Lastly, according to the Procedure, the export authorization expires automatically on the date established therein, though it can be revoked for exporter’s non-compliance with its obligations. The export authorization may be transferred to another party with prior approval of the Liquid Fuels Undersecretary, provided the assignee meets all the requirements of the Procedure.

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For additional information, please contact Nicolás Eliaschev, Javier Constanzó, Milagros Piñeiro, Victoria Barrueco, or Manuel Crespi.

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Open Call for BESS and power generation “AlmaGBA”

On February 17, 2025, the Secretary of Energy published Resolution 67/2025 (“Resolution 67”), initiating the national and international open tender “Almacenamiento AlmaGBA” (the “Call for Bids”).

The Call for Bids is designed to incorporate new Battery Energy Storage System (“BESS”) generation power plants within the concession areas of the distribution companies Edenor and Edesur. The goal is to achieve a combined capacity of 500 MW, with an execution period of 12 to 18 months.

Preferred bidders will enter into a power storage and generation agreement (the “Storage-Generation PPA”) with Edenor and Edesur, with CAMMESA acting as a last-resort guarantor.

While the full details of the Storage-Generation Agreement are yet to be released, the main aspects of the Call for Bids are outlined below:

1. Scope of the Call for Bids

The Call for Bids seeks to enhance the reliability and supply conditions, within the Buenos Aires metropolitan area and the Wholesale Electricity Market (“WEM”), focusing on specific connection nodes (“CNs”), which are specified in the Call for Bids.

Bidders selected under the Call for Bids will enter into a Storage-Generation PPA, committing to energy supply and power availability for a minimum of four (4) consecutive hours per full discharge cycle. The term of the Storage-Generation PPA will be 15 years.

2. Minimum and maximum power capacity per project

The power capacity for each bid must range from a minimum of 10 MW to a maximum capacity, determined by the lesser of 150 MW or the capacity assigned to each CNs.

3. Storage-Generation PPA

Under the Storage-Generation PPA, Edenor or Edesur will be the principal obligors, whereas CAMMESA will serve as a last-resort guarantor. Should a payment default occur for two or more periods, CAMMESA may be required to pay the outstanding amonuts in lieu of Edenor or Edesur, as applicable.

CAMMESA’s guarantee will be capped at a maximum of twelve (12) consecutive months, equivalent to the remuneration under the Storage-Generation PPA.

The full terms of the Storage-Generation PPA will be published no later than March 31, 2025.

4. Call for Bids Schedule

  • Consultation period: February 19 - May 4, 2025.
  • Publication of the Storage-Generation PPA: March 31, 2025.
  • Publication of responses to consultations: February 24 - May 11, 2025.
  • Bids Submission deadline: May 19, 2025.
  • Award date: June 27, 2025.
  • Storage-Generation PPA signing date: June 30, 2025.

5. Bidders and offers requirements

Among the various requirements set forth in the Call for Bids, bidders are required to provide a bank guarantee of US$10,000 per MW as a bid bond.

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For additional information, please contact Nicolás Eliaschev, Javier Constanzó, Daiana Perrone, Victoria Barrueco and/or Manuel Crespi.

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Normalization of the Wholesale Electricity Market

On January 29, 2025, CAMMESA published on its website complementary information to Resolution 21/2025 of the Secretary of Energy (“SE”) (the “Resolution 21”) (Available comments on this regulation here).

Among the published documentation, there is a note sent by the SE to CAMMESA (the “SE Note”) outlining the need for gradual normalization to encourage investment and reliability of the Wholesale Electricity Market (“WEM”).

Attached to the SE Note are the Guidelines for the Normalization of the WEM and its Progressive Adaptation (the “Guidelines”) prepared by the SE, which detail the modifications in fuel management, demand in the WEM, determination of prices and operation of both the Corporate PPA Market (“MAT”) and the Spot Market.

Additionally, the SE enclosed a Technical Report on the WEM situation (the “Technical Report”). This Technical Report analyzes regulatory and operational aspects to meet regulatory objectives, focusing on system transparency and efficiency, decentralization of CAMMESA, energy prices, fuel management review, Spot Market and MAT mechanisms adaptation, and infrastructure planning.

Associations represented in CAMMESA have thirty (30) days from January 30, 2025, to provide non-binding opinions on these documents for the WEM normalization process. At the same time, CAMMESA will have forty-five (45) days to prepare: a) a detailed report with a dispatch and transactional management plan; b) an analysis of the impact of the measures on the supply and demand of the WEM, and c) a report on the considerations of the WEM Associations.

Finally, the SE announced the issuance of new regulations for the normalization of the WEM to be effective as of November 1, 2025, regardless of the possible anticipated measures to eliminate restrictions.

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For additional information, please contact Nicolás Eliaschev, Javier Constanzó, Daiana Perrone, Victoria Barrueco and/or Manuel Crespi.

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Deregulation of Electric and Hybrid Electric Vehicles Charging Activity

On January 29, 2025, the Secretary of Energy published Resolution 22/2025, abrogating Resolution 817/2023 (the “Resolution 817”).

Resolution 817 had created the National Registry of Charging Infrastructure for Electric Vehicles (“EV”) and Hybrid Electric Vehicles (“HEV”) and imposed the obligation to charge such vehicles exclusively at service stations.

In line with the state reorganization principles set forth in the Foundations Law the elimination of Resolution 817 deregulates the EV and HEV charging activity, allowing any establishment to provide such services.

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For additional information, please contact Nicolás Eliaschev, Javier Constanzó, Daiana Perrone, Victoria Barrueco, and/or Giuliana Manzolido.

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New measures for the normalization of the Electricity Market

On January 28, 2025, the Secretary of Energy published Resolution 21/2025 (“Resolution 21”), which introduces the following key changes in the wholesale electricity market:

  1. Corporate PPA Market: Partially reinstates the Corporate PPA Market (“MAT”, or Mercado a Término) for thermal, hydroelectric and nuclear power plants with commercial date achieved after January 1st, 2025.
  1. Fuel management for Thermal Generators: As of March 1st, 2025, thermal generators operating in the Spot market (those without a PPA) will be allowed to manage their own fuel. The costs will be valued based on the reference price according to the variable production costs submitted, including transport and distribution costs, taxes and associated fees. CAMMESA will remain as the last-resort supplier, as well as the supplier of fuel for thermal generation PPAs.
  1. Phasing out the “Energy Plus” Regime: As of October 31st, 2025, the “Energy Plus” regime will be abrogated, although existing contracts will remain valid until their specified termination dates.

Resolution 21 is an initial but significant step in the National Government’s ongoing efforts to normalize the wholesale electricity market in a direction that fosters competition and private investment. As a result, additional and supplementary regulations are expected to be adopted in the short to medium term.

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For additional information, please contact Nicolás Eliaschev, Javier Constanzó, Daiana Perrone, Victoria Barrueco, or Manuel Crespi.

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Foundations Law: Hydrocarbons and Natural Gas Regulation

On November 29, 2024, the Government of Argentina released Decree 1057/2024 (“Decree 1057”), that regulates Chapters I, II, and VI of Title VI of Law No. 27,742 ( “Foundations Law”), which modifies Law No. 17,319 on Hydrocarbons (“Hydrocarbons Law”), Law No. 24,076 on Natural Gas (“Natural Gas Law”), and environmental legislation under Law No. 27,007 (the "Environmental Regulation").

To review our comments on the Foundations Law, please access here.

The key takeaways of Decree 1057 are summarized below:

1. Regulation of the Hydrocarbons Law

  1. Decree 1057 establishes certain guidelines regarding the activities of exploration, exploitation, processing, transportation, storage, industrialization, and commercialization of hydrocarbons, including:
    1. Free market principles;
    2. Competitive markets through the participation of the actors across the production chain and related sectors;
    3. Local price alignment with international market conditions, ensuring hydrocarbons supply and parity in imports and exports;
    4. Efficient resource allocation;
    5. Long-term contracts, competitiveness, productivity, and integration into global trade; and
    6. Ensuring present and future hydrocarbons local supply.
  1. Interested parties in developing the previously mentioned activities shall (i) establish a legal address in Argentina and (ii) demonstrate financial and technical capacity. Regarding interjurisdictional and international transportation, the Government shall grant concessions and authorizations for inter-provincial operations, as well as for imports and exports.
  1. Decree 1057 provides for the free exports of hydrocarbons, subject to specific requirements, that include the submission to the Secretary of Energy of documentation that evidences (i) the details of the planned operation, (ii) production capacity, (iii) commercial agreements, (iv) compliance with the destination country requirements, (v) legal representative information, (vi) semi-annual and annual projections of volume and quality of hydrocarbons, port of in operation, and loading estimated date. The Secretary of Energy may object exports in case of:
    1. Shortages affecting local supply;
    2. Inaccuracies in the submitted documentation;
    3. Evidence of anti-competitive practices; and
    4. Unforeseeable variations of prices in the local market.
  1. The Secretary of Energy shall manage an export registry to monitor approved, objected, and completed transactions, and shall issue the Free Export Certificate in favor of the interested party i if no objections are raised.
  1. The Secretary of Energy may consider the export of surplus volumes of gas.
  1. Concessionaries shall submit annually the information regarding the availability of the resources and estimated production.

2. Natural Gas Law Regulation

  1. Decree 1057 provides for the free exports and imports of Liquified Natural Gas (“LNG”). The Secretary of Energy shall regulate its procedure, contemplating its impact on the current and new infrastructure and its investment amounts. Interested parties shall submit documentation that evidence (i) availability of resources; (ii) technical and financial capacity; (iii) LNG maximum volumes to be exported; and (iv) if the project has filed for the Large Investments Incentive Regime (“RIGI”).
  1. The Secretary of Energy will elaborate a Declaration on the Availability of Gas Resources, which must be updated at least every five (5) years, including market conditions, estimated production and exports amounts, and its impact on the local demand.
  1. The Secretary of Energy may object LNG exports in case of (i) shortages affecting local supply; (ii) lack of capacity to export LNG; (iii) inaccuracies in the submitted documentation; and (iv) evidence of anti-competitive practices. If no objections are raised, the Secretary of Energy shall issue a Free Export Authorization.
  1. Transportation and distribution licenses are eligible for a twenty (20) year extension beyond the initial thirty-five (35) year term, subject to compliance with obligations and corrections of deficiencies identified by the National Gas Regulatory Body (“ENARGAS”).

3. Environmental Regulation

In order to promote a consolidated environmental regulation, Decree 1057 instructs the Secretary of Energy to identify a coordinated procedure to amend the legal framework, considering, among others: (i) environmental licensing processes, (ii) abandonment of wells and installations, (iii) management of environmental liabilities, waste, emissions, and effluent management, (iv) safety conditions, (v) greenhouse gas emissions and decarbonization, (vi) guarantees and insurance for environmental contingencies, (vii) participation and access to public information, (viii) corporate environmental and social responsibility, (ix) inspections and sanctions.

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For additional information, please contact Nicolás Eliaschev, Javier Constanzó, Daiana Perrone, Milagros Piñeiro, Victoria Barrueco and/or Giuliana Manzolido.

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Argentina extends the Emergency in the Energy Sector

On November 20, 2024, the Government of Argentina released Decree 1023/2024 (“Decree 1023”), that extends the emergency of the energy sector previously declared by Decree 55/2023, enacted on December 2023 (“Decree 55”) until July 9, 2025 (please see our comments on Decree 55, here).

Decree 1023 is applicable to the segments of generation, transport and distribution of electric energy under federal jurisdiction, as well as to transport and distribution of natural gas.

Moreover, Decree 1023:

  1. Instructs the Secretary of Energy to continue with the implementation of the necessary measures regarding the above-mentioned activities to establish the rate and pricing criteria under conditions of competition and free access and guaranteeing the provision of public utilities.
  1. Establishes that the resulting rates of the revision ordered by Decree 55 shall become effective by July 9, 2025.
  1. Extends the intervention of gas and power regulators –ENRE and ENARGAS– until the new entity established by Foundations Law is constituted.

 

For additional information, please contact Nicolás Eliaschev, Javier Constanzó, Daiana Perrone, Victoria Barrueco and/or Manuel Crespi.

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Updates to electricity spot prices

On February 8, 2024, the Secretary of Energy issued Resolution SE No. 9/2024 ("Resolution 9"), which amends Resolution No. 869/2023 ("Resolution 869").

Resolution 869 had approved the last adjustment of spot market remuneration established in Resolution SE No. 826/2022 and prior regulations.

Resolution 9 is issued within the framework of the Emergency Decree No. 55/2023, which declared the emergency of the National Energy Sector with respect to the segments under federal jurisdiction of generation, transportation and distribution of electricity, and transportation and distribution of natural gas, effective until December 31, 2024 (see our analysis of this regulation, here).

Resolution 9 is of an exceptional and temporary nature, whereby it will be applicable until the Secretary of Energy approves, no later than July 1, 2024, new regulations, with the end-goal of achieving an efficient, autonomous, competitive and sustainable energy market, in turn allowing free contracting among supply and demand, and the integration of the different generation technologies.

 

For additional information, please contact Nicolás Eliaschev, Javier Constanzó, Daiana Perrone, Rocío Valdez and/or Victoria Barrueco.

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