Changes in the Electrical Power Transmission Grid Expansions Regulation

On January 31, 2024, the National Electricity Regulatory Entity (in Spanish “Ente Nacional Regulador de la Electricidad”, hereinafter “ENRE”) published Resolution 65/2024 (“Resolution 65”), introducing changes to the regulation applicable to electrical power transmission and distribution grid expansions and connection requests, with the end-goal of simplifying each of the below processes.

To that end, Resolution 65:

  1. Eases the process for approving minor scale electrical power transmission or distribution grid expansion works.
  2. Approves a new methodology to assess requests aimed at constructing or expanding electrical power transmission or distribution grid expansions, other than those set forth in (a) above.
  3. Approves a new methodology to assess connection applications to the existing electrical power grid; and
  4. Creates two registries for expansion and connection requests to the electrical power grid.


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

Omnibus Reform Bill: Modifications to Hydrocarbons and Natural Gas Regulatory Framework

On December 27, 2023, Argentine President Javier Milei sent to the Congress an omnibus bill (the “Omnibus Bill”). Matters pertaining to hydrocarbons and natural gas are addressed below:

I. Amendments to Law 17,319 on Hydrocarbons

  1. Scope and objectives: The Bill includes the hydrocarbon processing activity as part of the law’s scope, empowering the Executive Branch to grant authorizations for its development. Also, the main objective of the national policy is modified to maximize the income obtained from resources’ exploitation and satisfaction of the hydrocarbon needs of the country.
  2. Free trade: The Executive Branch would no longer have the power to fix prices of the domestic market in any of the production stages (by way of eliminating the so-called domestic barrel). In the case of state-owned companies, these may only trade at arms-length prices. In relation to foreign market permit holders, concessionaires, refiners and/or marketers, these may freely export hydrocarbons and/or their derivatives, and the Executive Branch will regulate its conditions, with the end-goal of promoting free international trade.
  3. Exploration activities: The Bill removes the exclusivity of the superficial examination in areas reserved to state-owned companies and revokes the section that did not allow to begin with such works without prior approval. On the other hand, Section 21 modifies the payment of royalties for hydrocarbons extracted during exploration (previously set on 15%), which will now be agreed in the bidding process.
  4. Investment regime: Concessionaires would no longer be required to ensure that their investments ensure the maximum production of hydrocarbons, and that they are compatible with the adequate and economic exploitation of the field and the observance of criteria that guarantee the adequate conservation of reserves.
  5. Exploitation by foreign legal entities: the Bill overturns the Section that did not allow foreign legal entities to bid for permits and concessions.
  6. Royalties: The exploitation concessionaire would pay a monthly payment to the grantor, to be determined in bidding awarding process. Furthermore, the enforcement authority will have the power to reduce the royalty up to five percent (5%) taking into account the productivity, conditions, and location of the wells. Per the bill, royalties will be the sole income of the provinces (owner of the resources).
  7. Unconventional exploitation: The exploitation concessionaire, within the area of concession, may require the subdivision of the area and the conversion from conventional to unconventional. In addition, the Bill eliminates the five (5) year time-bard applicable to the pilot planning stage, and the possibility to request for ten (10) year extensions.
  8. Replacement of the transport concession: References related to hydrocarbon processing are incorporated to Article 4 regarding transportation. Likewise, the regime of transportation concessions is replaced for an authorization regime.

II. Amendments to Law 24,076 on Natural Gas

  1. Exports and imports: While natural gas imports continue to be authorized without prior approval, exports must be regulated by the Executive Branch.
  2. License Renewal: The Bill extends the term for license renewal, from ten (10) to twenty (20) years.
  3. Transportation, distribution, and stocking: The acquisition, construction, operation and maintenance of new gas storage facilities is allowed.


For additional information, please contact Nicolás Eliaschev, Javier Constanzó, Pablo Arrascaeta, Daiana Perrone, Florencia Martínez Trobbiani, Milagros Piñeiro, Rocío Valdez, and/or Victoria Barrueco.

President Javier Milei Omnibus Reform Bill

On December 27, 2023, Argentine President Javier Milei sent to the Congress an omnibus reform proposing far-reaching changes with respect to the matters described below.

  • Creation of an Incentive Regime for Large Investments: The bill creates the so-called "Incentive Regime for Large Investments", through which the holders and/or operators of large investments in new projects or expansions of existing ones of certain sectors (including agribusiness, infrastructure, forestry, mining, oil and gas, energy, and technology) that adhere to such regime will be entitled to tax grants, customs and FX benefits, among others, and long-term stability in such matters.
  • Introduction of changes in Public Works Concession regulation: Relevant amendments to the public works concession regime of Law No. 17,520 are contemplated, providing broad provisions with respect to the incorporation of sole purpose investment vehicles (SPVs), financing parties protection, arbitration resolution mechanisms, covenants of the State, and the possibility of presenting infrastructure projects by initiative of the private sector.
  • Amendments to the Electric Energy Regulatory Framework: The National Executive Power is empowered until December 31, 2025 to reform the electricity regulatory framework (Laws No. 15,336 and 24,065). Such changes shall conform the following guidelines: the right to freely negotiate export/imports electricity agreements; promote competition and the expansion of electricity markets; ensure that electricity transactions are based on economic rules; provide for transparency on price and rate calculation mechanisms; and foster the expansion of the transmission infrastructure.
  • Energy transition and reduction of GHG emissions : Within the framework of compliance with the Greenhouse Gas ("GHG") emissions targets committed by Argentine under the Paris Treaty, the National Executive Power is empowered with the right to assign GHG emission rights to each economic sector, set annual limits compatible with international commitments, monitor and penalize non-compliance with emission targets, and establish an emission rights market for the trading of surpluses of those who comply with their targets. The National State will provide private companies, the public sector and other organizations with the appropriate conditions and instruments to achieve these goals and access climate financing facilities.


For additional information, please contact Nicolás Eliaschev, Javier Constanzó, Daiana Perrone, Milagros Piñeiro, Pablo Arrascaeta, Florencia Martínez Trobbiani, Rocío Valdez and/or Victoria Barrueco.

Tax break for Renewable Power Generation Projects

The Secretary of Energy has enacted Resolution 714/2023 (the “Resolution 714”), dated September 1, 2023, that foresees a tax break for Renewable Power Generation Projects.

Resolution 714 provides that the Impuesto País will not be applicable with respect to the import of assets for renewable power generation projects that either (a) have an import financing facility or (b) do not have an import financing facility in place but submit a request before the customs authority.

Furthermore, the tax break will only be applicable to the projects set forth in Annex I thereto.

Finally, Resolution 741 will be applicable to the extent that the relevant assets are not subject to other tax relief (in which case, the latter shall apply).


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

EOI request for renewable energy and storage infrastructure projects

On May 9th, 2022, Resolution 330/2022 (“Resolution 330”) was published in the Official Gazette. This resolution launched an EOI request for development of certain energy projects which include renewables and, for the first-time at the utility scale level, storage.

1. Context and importance

The goal stated by Resolution 330 is to contribute to improve sustainability and reliability in the electricity sector within the Paris Agreement and local renewable portfolio standards which further implies:

  1. A ratification of the commitment by the Republic of Argentina towards fighting climate change and the promoting renewables.
  2. The first-time that storage is considered as a technology solution at the utility scale level. While preliminary and too early in the process this has game-changing potential.

2. EOI scope

The EOI includes two main types of projects:

  1. Renewables
  2. Battery installation and/or other storage systems in renewable power plants and/or at transmission interconnection points or distribution networks that improve operational management and reduce forced generation.

The EOI does not require an interested party to be an existing player in the Argentine power market to submit a proposal.

3. Formalities

The EOI presentation must be filed digitally by June 30th, 2022. The presentation must be sent to an email to be timely informed by CAMMESA (the Argentinean ISO).

Also, the EOI must include the following information:

  1. Address, telephone, email, and contact person.
  2. Brief description of the interested party. Background in similar projects if any.
  3. Description of the preliminary project, including technology, capacity, location, interconnection point, biomass fuel (if applicable) and any other relevant information.
  4. Indicative cost and compensation.


For further information, please contact either Nicolás Eliaschev, Tomás Villaflor or Luciana Tapia Rattaro.

COVID-19: Extension of the Limitations to the Interruption of Telecommunication Services

On May 1st and 4th, 2020, Decree No. 426/2020 (the “Decree”) and Resolution No. 367/2020 (the “Resolution”), respectively, were published in the Official Gazette. Both rules further supplement Decree No. 311/2020, which bans providers from ceasing to supply services  comprising fixed or mobile telephony, Internet and cable television to certain users (listed therein), in case of delay or lack of payments up to three (3) consecutive or alternate bills with due dates as from March 1st, 2020.

Below is a summary of the regulations’ most relevant aspects.

1. Decree No. 426/2020

The Decree extends until May 31st, 2020, the obligation placed upon the providers of telecommunication services to offer limited services capable of guaranteeing  connectivity to users who fail to pay top-up fees to access consumption, and the resulting impossibility to shut-off the service due to such cause.

2. Resolution No. 367/2020

The Resolution has been issued by the National Communications Agency (“ENACOM”, for its Spanish acronym), with the purpose of supplementing certain provisions included in Decree No. 311/2020 and Resolution No. 173/2020, issued by the Ministry of Productive Development, with regards to telecommunication services’ providers.

The Resolution imposes the following additional obligations over those companies:

  1. The obligation to provide, within a maximum term of three (3) days, the following data: 1) List of all users whose service is registered prior to March 26th, 2020, that may be subject to shut-off caused by lack of payment, or keep ongoing shut-off notices; and whose invoices were due as of March 1st, 2020; and 2) List of all the users with pre-paid services who have required a top-up on February and/or March, 2020. This information has to be entered as a Sworn Affidavit in accordance with Appendix No. 1 of the Resolution, available at the following link.
  2. The prohibition to suspend or shut-off services due to lack of payment from users not included in the lists prepared by the Coordination Unit created via Resolution No. 173/2020.
  3. The obligation to report to the ENACOM within the first (15) days as of the Resolution, all prices established for the limited services comprised by article 1 of Decree No. 311/2020 and the terms and conditions and/or forms of the financial facilities offered to users and their information process. Those financial facilities should at least prescribe the possibility for the service to be paid in three (3) monthly installments, to which no interest will accrue, nor penalty will be applicable.
  4. The obligation to publicly disclose these regulatory provisions not only through providers’ web pages, but also via the social networks used and/or advertisement.

Failure to comply with these will result in penalties being imposed under Law No. 26,522 and 27,078, as applicable.

For further information, please contact Nicolás Eliaschev and/or Javier Constanzó.

In the following link, you can access the Firm’s statement on COVID-19.

For information concerning COVID-19 legal implications, please refer here.

Renewables and Distributed Generation: Between Promises and Reality During COVID-19 Times

As the worldwide oil prices volatility show, the energy industry has not been left unaffected by the global crisis caused by COVID-19 pandemic.

During these hard times, it is worthwhile to wonder about the present and the future of the Argentinian electricity sector and the potential to turn the crisis into an opportunity.

In the attached report, we argue that price volatility of energy commodities and the current and future presence of health and environmental disruptive threats, advice to keep betting for diversification of the electricity mix as the best path to ensure security and continuity for long-term power supply.

Under this context, the report summarizes the main aspects of laws and regulations targeting renewable distributed generation which have shown strong consensus in the country as we further claim that fostering renewable distributed generation such as our current policy does, seems convenient under existing circumstances.

The report also includes preliminary remarks regarding the following issues:

1. Short-term relevant needs of the electricity sector

  1. Preservation of payment cash flow and short and mid-term economic and financial sustainability of all industry players.
  2. Termination of emergency under Law 27,741 during the legal period provided thereof and operation of the electricity sector under the rules of Law 24,065.
  1. Short-term focus for renewables
  1. Possibility of extending commercial operation dates and intermediate milestones in power purchase agreements corresponding to projects under structuring and/or advanced construction affected by the health crisis and measures adopted consequently either in Argentina or abroad.
  2. Assessing on a-case-to-case basis opt-outs and/or voluntary renegotiation of power purchase agreements for projects with no activity prior to March 12, 2020 (date under which the health crisis was declared), using uniform and non-discriminatory approaches.
  1. Long-term decisions
  1. Definition of transmission infrastructure expansion structure and planning for deployment for additional capacity of renewables for complying with the goal of 20% of consumption for 2025.
  2. Technical and financial evaluation of expanding such consumption target beyond 2025.
  3. Continuity of the electricity mix diversification, evaluating the role of efficient thermal, nuclear and hydropower technologies.
  4. Assessment of new technologies to strengthen the system and supplement the development of Distributed Generation, including power storage, smart metering, demand management and electric mobility.
  5. Assessment of opportunities to boost regional integration and cooperation for spot and long-term exchanges of natural gas destined to power generation and, power itself, with nearby countries.

Download Report

In the following link, you can access the Firm’s statement on COVID-19.

For information concerning COVID-19 legal implications, please refer here.

Public Tender for the Construction of the Gas Del Centro Natural Gas Transportation System

By means of Resolution No. 437/19 (the “Resolution”), the Secretary of Government of Energy (the “SGE”) has called for a public bidding procedure for purposes of awarding a new natural gas transport license (the “License”). This new infrastructure project entails the design and construction of a natural gas pipeline that will: (i) connect a facility located in the Neuquén’s Subzone with another facility located in the city of Salliqueló, Province of Buenos Aires; and (ii) interconnect the Salliqueló’s facility with TGN’s gas transportation system in a spot near the city of San Nicolás, Province of Buenos Aires. This new transportation system has been officially named as Transporte Gas del Centro (the “Project”).

The Resolution also approved the definitive version of the bidding terms and conditions (the “Terms and Conditions”) and its annexes. Finally, the Resolution scheduled the submission of bids date on September 12th, 2019.

Below are the Terms and Conditions’ most important aspects:

(a) Required Works

The Project includes:

(1) Phase 1: construction of 570 km of a 36 inch pipeline with an initial capacity of 15 MMm3/day of natural gas (9.300 kcal/m3) and a future minimum capacity of 40 MMm3/day, which will connect a gas facility located near Tratayén, Neuquén, with a facility located near to the city of Saliquelló, Buenos Aires (“Phase 1”); and

(2) Phase 2: construction of 470 km of a 30 inch pipeline with a minimum capacity of 20 MMm3/day of natural gas (9,300 kcal/m3) which will connect the facility located near city of Saliquello, Buenos Aires with a gas pipeline located near the city of San Nicolás de los Arroyos, Buenos Aires (the “Phase 2”).

(b) Schedule (main milestones and occurrence expected time pursuant to the Terms and Conditions)

Milestone Expected Date
Consultation Period Until August 29th
Publishing by the SGE of circular letters (amendment and clarification) Until September 5th
Bids’ Submission September 12th
Offers’ Opening September 12th
Offers Assessment September 26th
Bids’ Qualification October 3rd
Economic Offer’s Opening October 8th
Award Date October 21st
Execution of the License November 20th

Additionally, the following milestones, regarding the execution of the works, are scheduled (terms shall begin on the License’s execution date):

Milestone Phase 1 Phase 2
Presentation of the final project 2 months 42 months
Financial Close 6 months N/A
Partial Operation 18 months N/A
Commercial Operation 24 months 60 months

(c) Economic Offer: CAMMESA’s Transportation Agreement

Bidders must bid a monthly fee regarding the CAMMESA’s Transportation Agreement (as this term is defined below) for the contracted Phase 1’s transport capacity corresponding to 10 MMm3/day. The bidder proposing the lower amount shall be awarded.

Jointly with the execution of the License, the awardee shall execute the Offer Letter attached as Annex IV of the Terms and Conditions (“CAMMESA’s Transportation Agreement”).

(d) Financing provided by ANSES’ Guarantee

Fund Pursuant to the Terms and Conditions, the awardee is entitled to apply for a financing facility from ANSES’ Guarantee Fund. Main terms of the financing conditions are summarized below:

(1) Validity Term of the Financing Commitment¸ the first one to occur between:

  • Fourteen (14) months since the execution of the Commitment Letter by and between the ANSES and the SGE; or
  • Ten (10) months since the awarding date.

(2) Type of Titles: Securities issued under the Argentine Offer Public Regime.

(3) Maximum Amount: US Dollars four hundred million (USD 400,000,000).

(4) Securities’ Maturity: fourteen (14) years.

(5) Interest Rate: Linked to (i) sovereign yields for similar maturity terms; and (ii) Project’s risk.

For further information, please do not hesitate to contact either Nicolás Eliaschev or Javier Constanzó.

Natural Gas Exports: Regulatory Updates

On July 26, 2019, Resolution No. 417/19 (the “Resolution”), issued by the Secretary of Government of Energy of the Ministry of Treasury has been published in the Official Gazette with important implications regarding natural gas exports. This Resolution approves a new procedure that must be complied with by those interested in exporting natural gas.

The Resolution revokes prior Resolution No. 104/18 issued by the former Ministry of Energy on August 22, 2018.

This Resolution also entrusts the Undersecretary of Hydrocarbons and Fuels to: (i) enact the applicable framework that shall rule mechanisms for energy substitution for natural gas exports on a firm basis - notwithstanding Resolution’s applicability until such mechanisms are enacted-, and (ii) the elaboration and further approval of the mechanisms applicable for natural gas exports which shall apply upon shortage of natural gas in the local market.

The Resolution’s most relevant aspects are outlined below:

  1. Type of authorizations: The Resolution foresees four (4) kinds of authorizations:
  • Firm or uninterruptible: natural gas purchase agreements which contemplate delivery and reception of gas by the contracting parties that are mandatory and cannot be carved-out except for force majeure events;
  • Interruptible: natural gas purchase agreements which do not contain mandatory delivery and/or reception provisions which bind the contracting parties;
  • Operational exchanges: agreements executed for purposes of attending operational requirements (back-up fuel) and/or emergency scenarios and others of similar nature, to the extent the enforcement authority requires the exporting party to reimport equal amounts of natural gas (or equivalent electricity quantities) within twelve (12) months as of the first event of exportation;
  • Assistance agreements: for providing support to neighboring countries under critical situations and/or declared states of emergency. The exporter shall not be required to import equivalent volumes of the exported natural gas nor its equivalent in power. These exports are excluded from the procedure provided in the Resolution.
  1. Simplification of the procedure to request the authorization: The export filing request shall be made digitally through an online remote platform.
  1. Unconventional natural gas: The volume of exported natural gas produced by a project benefited from the Government’s Incentive Program will be offset from the project’s total production, prior to the determination of the project’s Included Production volumes. Former Resolution No. 104/18 provided that exported gas could not be employed within the Government’s Incentive Program approved for unconventional gas.

For further information, please do not hesitate to contact either Nicolás Eliaschev or Javier Constanzó.

Relevant News on the Renewable Energy Sector

On July 11th, 2019, Decree No. 476 (the “Decree”) of the National Executive was published in the Official Gazette, with relevant news regarding the renewable energy regime.

The Decree has partially amended Decree No. 531/2016 (regulating) Laws No. 26,190 and No. 27,191. Most relevant aspects of the Decree are summarized below:

  1. Simplification of the process to obtain the Inclusion Certificate

The Secretary of Government of Energy—in its capacity as enforcement authority of the renewable energy regime—is empowered to: (i) analyze and approve the renewable projects that may apply for the Inclusion Certificate; and (ii) grant, to each of the approved projects, amounts requested as tax benefits, without the prior intervention of the Secretary of Treasury. In addition, the Decree eliminates the Ministry of Treasury’s intervention which is now no longer required.

  1. Execution of Power Purchase Agreements (“PPAs”) with public-owned entities

The Decree entitles CAMMESA (Wholesale Electric Market Management Company) to enter into PPAs with public-owned entities (either national, provincial and/or City of Buenos Aires’ owned). Prior the Decree, such entities were allowed to execute PPAs with CAMMESA insofar they participated in public tender procedures. The Decree now allows them to execute PPAs without participating in those procedures, to the extent that the following requirements are met: (i) the generation facility is owned by such public entities; (ii) those projects are able to access better financing conditions in comparison with the ones that the Federal or Provincial State could access to; and (iii) the investment projects have a relevant impact in local development.

Assignment, transfer or subcontracting of the PPAs are forbidden.

The agreed price under the PPA must be in line with those arising from public tendering called by the Secretary of Government of Energy, which implies that these agreements must be entered on a market condition basis.

As of this measure, public-owned entities are now eligible to enter into PPAs: (i) within the term market (approved by Resolution No. 281/17), and/or (ii) directly with CAMMESA, either directly (based on the Decree) or after being selected as such after a competitive procedure is carried out.

  1. Expectations for the Round 4 of the RenovAr Program

Senior officers of the Secretary of Government of Energy have announced that they are working in the design of the future Round 4 of the RenovAr Program, which is expected to be officially launched on November 2019.

Unlike the other rounds of the RenovAr Program, this new round is believed to require the bidders, in addition to their generation projects, the execution of works for the extension of the transmission capacity of some main lines of the Argentine electricity sector.

For further information, please do not hesitate to contact either Nicolás Eliaschev, Javier Constanzó or Juan Pablo Filippini.