Argentina’s Latest Energy Resolution may just Lead to a Brighter Future
Addressing the Energy Crisis. Part III
The following reference values (in USD / MW) are the foreseen tax benefits for each technology:
- wind 1,400,000;
- small hydroelectric uses 2,800,000;
- solar photovoltaic 850,000;
- biomass 2,500 .000;
- biogas 4,500,000;
- landfill biogas 1,300,000
In this new round of the “RenovAR” Program, the participation of Transitory Unions of companies and trusts as bidders and potential beneficiaries of the tax benefits granted to them is admitted. This new round also differs in respects to the existence and temporary permanence of a strategic financial partner, or minimum financial requirements (net worth) of the bidder, rather than the declaration of minimum committed energy.
The Res. 100 bidding implies a new advancement in the development of the electric power production industry from renewable sources and seeks to utilize the capacities available in medium voltage networks and the promotion of the regional development of Argentina. Energy Secretary of the Ministry of Finance, Javier Iguacel, assures "In the last three months we doubled the production of renewable energy, we went from less than 1% to 4.3%. We are on the right path that leads us to produce abundant and clean energy, reaching competitive costs for the development of SMEs, industries, and transport”.
The contemporary "RenovAR" Program is a great opportunity to transform Argentina's energy matrix. Beyond the highlights of the Legislative Decree, of working towards the promotion of the efficient use of electric power; reducing the losses in the interconnected systems; decreasing the energy generation costs; and promotion environmental protection and preservation, the Decree is a domestic investment in Argentina- showing high interest in the countries commercial and industrial sectors.
“RenovAR” does not only work to better circulate user-generated energy but is depending on the domestic manufacturers to create the equipment used to generate said energy. In the next coming years, the country will work vigorously to further develop their By: Rebecca Archer. Dec. 2018 framework for renewable energy to foster public infrastructure and educational institutions. But for the time, the currently established legislation is a great start to encouraging the participation of local industries and can potentially be the answer to Argentina’s long-term energy crisis concerns.