By means of Decree No. 476/2019 (“Decree”) the Regime for the Promotion of Renewable Energies (“Regime”), established by laws No. 26,190 and No. 27,191, was modified with the aim of promoting the use and generation of electricity from renewable sources throughout the national territory.
The Decree modifies the process by means of which the projects will receive the benefits established by the Regime and incorporates the possibility for state companies, or companies owned exclusively by the Argentine Government, to enter into power purchase agreements with CAMMESA. It also confirms that the Enforcement Authority is the Governmental Energy Secretariat, depending of the Ministry of Finance.
The main modifications made by the Decree are:
- Deletion of the order of merit previously established to classify the projects that will access to the Regime and determine which of them would be awarded with the benefits established by the Regime, if the previously established tax quota was to be exceeded.
- Authorization in favour of the Ministry of Finance to instruct the execution of energy supply agreements from renewable sources, with state companies, or companies exclusively owned by the Argentine Government. These companies may only enter into such agreements provided they meet the following conditions: (i) they are the owners of an investment project; (ii) they have obtained financing for the project under conditions that does not imply a higher financial cost than the ones Argentina could obtain; and (iii) the investment project has a significant impact on the local development.
On the other hand, Disposition 83/2019 ("Disposition") establishes the conditions and the procedure for obtaining the tax credit certificate set forth by the Promotion Regime for Distributed Generation of Renewable Energy established by Law No. 27,424. These certificates may only be obtained by those who (i) have purchased distributed generation equipment after April 16, 2019 and (ii) do not have debt before the Federal Tax Authority (AFIP). The amount of the Tax Credit Certificate will be of fifteen Argentine Pesos (AR$ 15) per unit of power expressed in watts (AR$ 15 / W) and up to a maximum of one million (AR$ 1,000,000).