The Argentine Electricity Sector

Electricity was first made available in Argentina in 1887 with the first public street lighting in Buenos Aires. The Argentine Government’s involvement in the electricity sector began in 1946 with the creation of the Dirección General de Centrales Eléctricas del Estado (General Directorate of Electric Power Plants of the State) to construct and operate electricity generation plants. In 1947, the Argentine Government created Agua y Energía Eléctrica S.A. (Water and Electricity, or ‘AyEE’) to develop a system of hydroelectric generation, transmission and distribution for Argentina.

In 1961, the Argentine Government granted a concession to the Compañía Italo Argentina de Electricidad (Italian Argentinean Electricity Company, or ‘CIADE’) for electrical distribution in a part of the City of Buenos Aires. In 1962, the Argentine Government granted a concession formerly held by the Compañía Argentina de Electricidad (Argentine Electricity Company, or ‘CADE’) to Servicios Eléctricos del Gran Buenos Aires (Electricity Services of Greater Buenos Aires, or ‘SEGBA’) for the generation and distribution of electricity to parts of Buenos Aires. In 1967, the Argentine Government granted a concession to Hidroeléctrica Norpatagónica S.A. (‘Hidronor’) to build and operate a series of hydroelectric generation facilities. In 1978, CIADE transferred all of its assets to the Argentine Government, following which CIADE’s business became state owned and operated.

By 1990, virtually all of the electricity supply in Argentina was controlled by the public sector (97% of total generation). The Argentine Government had assumed responsibility for the regulation of the industry at the national level and controlled all of the national electricity companies, AyEE, SEGBA and Hidronor. The Argentine Government also represented Argentine interests in generation facilities developed or operated jointly with Uruguay, Paraguay and Brazil. In addition, several provinces operated their own electricity companies. Inefficient management and inadequate capital spending, which prevailed under national and provincial government control, were in large measure responsible for the deterioration of physical equipment, decline in quality of service and proliferation of financial losses that occurred during this period.

In 1991, as part of the economic plan adopted by then President Carlos Menem, the Argentine Government undertook an extensive privatization program of all major state owned industries, including within the electricity generation, transmission and distribution sectors. In 1992, the Argentine Congress adopted Law No. 24,065, the Electricity Regulation Framework (a supplement to Law No. 15,336, Federal Electricity Law, and its Administrative Order No. 1,398/92), which was the keystone for the reform and privatization of the sector. The goal of the law was to modernize the electricity sector by promoting efficiency, competition, improved service and private investment.
It restructured and reorganized the sector, and provided for the privatization of virtually all business activities that had been carried out by Argentine state-owned enterprises. The law established the basis for the ENRE (Ente Nacional Regulador de la Electricidad or the ‘National Electricity Regulatory Entity’) and other institutional authorities in the sector, the administration of the Wholesale Electricity Market(‘WEM’), pricing at the spot, tariff-setting in regulated areas and for evaluating assets to be privatized. This law also had a profound, albeit indirect, impact at the provincial level, as virtually all of the provinces followed the regulatory and institutional guidelines of this law. Finally, this law, which continues to provide the framework for regulation of the electricity sector since the privatization of this sector, divided generation, transmission and distribution of electricity into separate businesses, each subject to segment-specific regulation.

Under Law No. 24,065, distribution and transmission activities are considered public services and defined as natural monopolies. These activities are completely regulated by the Government and require a concession. Although the concessions granted to distributors do not impose specific investment parameters, distributors are obligated to connect new customers and meet any increased demand. The expansion of existing transmission facilities by the respective concessionaires is not restricted. In contrast, generation, although regulated by the Government, is not deemed a monopoly activity and is subject to free competition by new market entrants. Operation of hydroelectric power plants requires a concession from the Government. New generation projects do not require concessions but must be registered with the Former Secretariat of Energy (‘SE’).

Many of the provincial governments, following the privatization path in the sector, have established their own politically and financially independent regulatory bodies at the provincial level. Local distribution in the provinces (except the City of Buenos Aires and certain areas of the Province of Buenos Aires that were served by SEGBA and today are served by Edenor and Edesur) is regulated by each province. Previously, the utilities themselves had played a major role in making sector policies and setting tariffs for the provinces.

At the end of 2001 and beginning of 2002, Argentina experienced an unprecedented crisis that virtually paralyzed the country’s economy through most of 2002 and led to radical changes in Government policies. The crisis and the Government’s policies during this period severely affected the electricity sector. Pursuant to the Emergency Law, the Argentine Government, among other measures:

• Converted electricity prices and transmission and distribution tariffs from their original U.S. Dollar values to Pesos at a rate of Ps. 1.00 per US$1.00;
• Froze all regulated transmission and distribution tariffs, revoked all price adjustment provisions and inflation indexation mechanisms in public utility concessions (including electricity transmission and distribution concessions), and empowered the Executive Branch to conduct a renegotiation of these concessions, including the tariffs for electricity transmission and distribution services; and
• Required that spot prices on the WEM be calculated based on the price of natural gas (which is also regulated by the Argentine Government), regardless of the fuel actually used in generation activities, even if gas is unavailable.

These measures created a huge structural deficit in the operation of the WEM and, combined with the devaluation of the Peso and high rates of inflation, had a severe effect on the electricity sector in Argentina, as electricity companies experienced a decline in revenues in real terms and a deterioration of their operating performance. Most electricity companies had also incurred large amounts of foreign currency indebtedness under the Convertibility regime. Following the elimination of the Convertibility regime and the resulting devaluation of the Peso, the debt service burden of these companies increased sharply, leading many of these companies to suspend payments on their foreign currency debt in 2002. This situation caused many Argentine electricity generators, transmission companies and distributors to defer further investments in their networks. As a result, Argentine electricity market participants, particularly generators, are currently operating at near full capacity, which could lead to insufficient supply to meet a growing national energy demand. In addition, the economic crisis and the resulting emergency measures had a material adverse effect on other energy sectors, including oil and gas companies, which has led to a significant reduction in natural gas supplies to generation companies that use this commodity in their generation activities.

In December 2004 the Argentine Government adopted new rules to meet demand growth, including the construction by the Argentine Government of two new 800 MW combined cycle generators. These generators commenced operations at full capacity in the first half of 2010. The costs of construction were primarily financed with net revenues of generators derived from energy sales in the spot market, deposited into a fund called the Fondo de Inversiones Necesarias que Permitan Incrementar la Oferta de Energía Eléctrica en el Mercado Eléctrico Mayorista (’FONINVEMEM’).

The construction of these new generators reflects a recent trend by the Argentine Government to take a more active role in promoting energy investments in Argentina. An example of this is the creation of Energía Argentina S.A. (‘ENARSA’) (Law No. 25,943), currently Integración Energética Argentina S.A. (‘IEASA’) with the purpose of developing almost every activity in the energy sector, from the exploration and exploitation of hydrocarbons, the transport and distribution of natural gas, to the generation, transmission and distribution of energy. In addition to these projects, in April 2006 the Argentine Congress enacted a law that authorized the Executive Branch to create a special fund to finance infrastructure improvements in the Argentine energy sector through the expansion of generation, distribution and transmission infrastructure relating to natural gas, propane and electricity. The special fund would obtain funds through cargos específicos (specific charges) passed on to customers as an itemization on their energy bills.

Finally, in September 2006 the Argentine Government, in an effort to respond to the sustained increase in energy demand following Argentina’s economic recovery after the crisis, adopted new measures that seek to ensure that energy available in the market is used primarily to service residential users and industrial and commercial users whose energy demand is at or below 300 kW and who do not have access to other viable energy alternatives. In addition, these measures seek to create incentives for generation plants to meet increasing energy needs by allowing them to sell new energy generation into the Energía Plus (Resolution No. 1281/06 of the SE (former Secretariat of Energy) system at unregulated market prices.

Continuing with the trend to encourage the installation of new generation, the SE by means of its Resolution No. 220/2007 and modifications thereto, allowed CAMMESA to execute WEM Supply Agreements with a generator agent of the WEM. The values to be paid by CAMMESA (Compañía Administradora del Mercado Eléctrico Mayorista or the ‘Argentine Wholesale Electricity Market Clearing Company’) in consideration for the capacity and the energy supplied by the generator must be approved by the SE. The generator shall guarantee certain availability of the generation units (established as a percentage), and if it fails to do so, penalties apply.

In 2008, the SE allowed CAMMESA to execute WEM Supply Agreements with generators the intention of which is to execute plans to repair and/or repower their generating equipment, and for the cost which would exceed 50% of the revenues that they expect to receive on the sales to the spot market.

Since 2013, the SE introduced material changes to the structure and operation of the WEM through Resolution No. 95/2013, as amended, establishing a different remuneration scheme in Pesos (payable in cash and receivables) for the whole generation sector, except certain power plants and electricity sold under contracts with differential remuneration, regulated by SE.

Transactions among different participants in the electricity industry take place through the Wholesale Electricity Market, or WEM, which was organized concurrently with the privatization process as a competitive market in which generators, distributors and certain large users of electricity could buy and sell electricity at prices determined by supply and demand, and were allowed to enter into long-term electricity supply contracts. The WEM consists of:

• a term market where quantities, prices and contractual conditions are agreed upon directly between sellers and buyers (after the enactment of former Secretariat of Energy (‘SE’) Resolution No. 95/2013, this was limited to the Energy Plus market, and later being added the Term Market from Renewable Energy Sources, also known as MAT ER, according to Resolution No. 281/2017 of former Ministry of Energy and Mining);
• a spot market where prices are established on an hourly basis as a function of economic production cost; and
• a stabilized pricing system of spot prices, which we refer to as the seasonal price, set on a semi-annual basis and designed to mitigate the volatility of spot prices for purchases of electricity by distributors.

The following chart shows the relationships among the various actors in the WEM:

CAMMESA

The creation of the WEM (‘Wholesale Electricity Market’) made it necessary to create an entity in charge of the management of the WEM and the dispatch of electricity into the SADI (Sistema Argentino de Interconexión or ‘Argentine Electricity Grid’). The duties were entrusted to CAMMESA (Compañía Administradora del Mercado Eléctrico Mayorista or ‘Argentine Wholesale Electricity Market Clearing Company’), a private company created for this purpose.

CAMMESA is in charge of:

the dispatch of electricity into the SADI, maximizing the SADI’s safety and the quality of electricity supplied and minimizing wholesale prices in the spot market;
planning energy capacity needs and optimizing energy use in accordance with the rules set forth from time to time by the Former Secretariat of Energy (‘SE’);
monitoring the operation of the term market and administering the technical dispatch of electricity under agreements entered into in that market;
acting as agent of the various WEM agents and carrying out the duties entrusted to it in connection with the electricity industry, including billing and collecting payments for transactions between WEM agents (upon enactment of SE Resolution No. 95/2013, this was limited to the contracts then in force and, thereafter, to those contracts executed under Energy Plus Program, and later being added those contracts executed under Term Market from Renewable Energy Sources (‘MAT ER’) according to Resolution No. 281/2017 of former Ministry of Energy and Mining);
purchasing and/or selling electric power from abroad or to other countries by performing the relevant import/export transactions;
purchasing and administrating of fuels for the applicable WEM generators; and
providing consulting and other related services.

Five groups of entities each hold 20% of the capital stock of CAMMESA. The five groups are the Argentine Government, the associations that represent the generation companies, transmission companies, distribution companies and large users.

CAMMESA is managed by a board formed by representatives of its shareholders. The board of CAMMESA is composed of ten regular and ten alternate directors. Each of the associations that represent generation companies, transmission companies, distribution companies and large users are entitled to appoint two regular and two alternate directors of CAMMESA. The other directors of CAMMESA are the Under Subsecretariat of Electric Energy, who is the board chairman in virtue of the delegation of the Federal Government, and an independent member, who acts as vice chairman. The decisions adopted by the board of directors require the affirmative vote of the board chairman. CAMMESA’s operating costs are financed through mandatory contributions by the WEM agents.

Generators

Generators are companies with electricity generating plants that sell output either partially or wholly through the SADI. Generators are subjected to the scheduling and dispatch rules set out in the regulations and managed by CAMMESA. Privately owned generators may also enter into direct contracts with distributors or large users. However this possibility was suspended by SE Resolution No. 95/2013, limited to the contracts executed under Energy Plus Program, and later being added those contracts executed under MAT ER according to Resolution No. 281/2017 of former Ministry of Energy and Mining.

Argentina’s generation capacity fell by 423 MW, reaching a total of 43,351 MW as of December 2024, mainly due to Yacyretá Power Plant’s lower firm availability (-1,195 MW) and the decommissioning of obsolete units (-583 MW). However, 925.2 MW from renewable units and 365.5 MW from thermal units were incorporated, including the 60 MW repowering of the Docksud CCGT.

Power generation grew by 1% in 2024, reaching 141,592 GWh, driven by renewable sources (+2,791 GWh), thermal sources (+2,370 GWh) and nuclear power availability (+1,486 GWh), partially offset by a 15% reduction in hydropower generation, net of pumping (-5,635 GWh). The grid maintained its dependence on thermal generation, using both natural gas and liquid fuels (GO and FO) and mineral coal, contributing 53% of the total energy volume (75,388 GWh), followed by hydropower generation net of pumping (32,880 GWh, 23%), renewable energies (22,875 GWh, 16%) and nuclear power (10,449 GWh, 7%). Although the SADI has been a net power importer for the third consecutive year, in 2024, imports decreased by 25% to 4,654 GWh, exports increased tenfold to 970 GWh, and losses were reduced by 14% to 5,049 GWh.

The following chart shows the evolution of power generation by source (thermal, hydroelectric, nuclear, and renewable) in GWh:

Transmission companies

Transmission companies hold a concession to transmit electric energy from the bulk supply point to electricity distributors. The transmission activity in Argentina is subdivided into two systems: the High Voltage Transmission System (‘STEEAT’), which operates at 500 kV and transports electricity between regions, and the regional distribution system (‘STEEDT’) which operates at 132/220 kV and connects generators, distributors and large users within the same region. Transener is the only company in charge of the STEEAT, and six regional companies are located within the STEEDT (Litsa, Transnoa, Transnea, Transpa, Transba and Distrocuyo). In addition to these companies, there are also independent transmission companies that operate under a technical license provided by the STEEAT or STEEDT companies.

Transmission and distribution services are carried out through concessions. These concessions are re-distributed periodically based on a re-bidding process. Transmission companies are responsible for the operation and maintenance of their networks, but not for the expansion of the system. The transmission concessions operate under the technical, safety and reliability standards established by the ENRE (Ente Nacional Regulador de la Electricidad or ‘National Electricity Regulatory Entity’). Penalties are applied whenever a transmission concessionaire fails to meet these criteria, particularly those regarding outages and grid downtime. Generators can only build lines to connect to the grid, or directly to customers. Users pay for new transmission capacity undertaken by them or on their behalf. A public hearing process for these projects is conducted by the ENRE, which issues a ‘Certificate of Public Convenience and Necessity’. Transmission or distribution networks connected to an integrated system must provide open access to third parties under a regulated toll system unless there is a capacity constraint.

Distribution companies

Distributors are companies holding a concession to distribute electricity to consumers. Distributors are required to supply any and all demand of electricity in their exclusive areas of concession, at prices (tariffs) and conditions set in regulation. Penalties for non-supply are included in the concessions agreements. The three distribution companies divested from SEGBA (Edenor, Edesur and Edelap) represent more than 40% of the electricity market in Argentina. Only a few distribution companies (i.e., Empresa Provincial de Energía de Córdoba, Empresa de Energía de Santa Fé, and Energía de Misiones) remain in the hands of the provincial governments and cooperatives. Edelap has been transferred to the jurisdiction of the Province of Buenos Aires.

Each distributor supplies electricity and operates the electricity distribution network in a specific geographical area under a concession. Each concession determines, among others, the concession area, the quality of service required, the tariffs to be paid by consumers, and the extent of the obligation to meet the demand.

The ENRE monitors the compliance of the distributors at the federal level, and provides a mechanism for public hearings in which complaints against distributors can be heard and resolved. In addition, the provincial regulatory bodies control the compliance of the local distributors with their respective concessions and local regulatory frameworks.

The provincial authorities and the ENRE control the fulfillment of the concession agreements of these public services in the provinces. Many provincial governments that have launched reforms in the electricity sector have followed the terms and conditions of the concessions used for the distribution of public services at the national level.

Large users

The wholesale electricity market classifies large users of energy into three categories: (1) Grandes Usuarios Mayores (Major Large Users or ‘GUMAs’), (2) Grandes Usuarios Menores (Minor Large Users or ‘GUMEs’) and (3) Grandes Usuarios Particulares (Particular Large Users or ‘GUPAs’).

Each of these categories of users has different requirements with respect to purchases of their energy demand. For example, GUMAs are required to purchase 50% of their demand through supply contracts and the remainder in the spot market, while GUMEs and GUPAs are required to purchase all of their demand through supply contracts.

Large users participate in CAMMESA by appointing two acting and two alternate directors through the Asociación de Grandes Usuarios de Energía Eléctrica de la República Argentina (‘Argentine Association of Electric Power Large Users’ or AGUEERA).

Since December 30, 2019, the commercial management and supply of power plants’ fuel have been centralized in CAMMESA, except for generators with PPA under Energía Plus and SEE Res. No. 287/17 (MDP Res. No. 12/19). Since January 2021, with the implementation of Plan Gas (SE Res. No. 354/20) and the transfer of gas and its transportation by exempted generators to CAMMESA, thermal dispatch has prioritized units supplied with gas imported from Bolivia under a ToP condition, followed by those provided by Plan Gas according to their efficiency and, finally, units assigning gas to CAMMESA.

However, on January 28, 2025, the SE abrogated SE Res. No. 354/20, effective February 1, 2025, and established that, as of March 1, 2025, it would authorize generators to manage their fuel for spot energy units (SE Res. No. SE 21/25).

Fuel consumption for power plants increased by 1% year-on-year in 2024, totaling 45.4 million m3/day of gas equivalent. Natural gas accounted for 92% of total consumption, with a 9% increase, to 41.6 million m3/day, 93% of which was local and 7% imported. The use of alternative fuels (FO, GO and mineral coal) decreased by 65%, 27% and 51%, respectively.

The remuneration comprises a fixed payment for the monthly available power capacity, with or without offering DIGO, and a variable payment for the energy generated, operated and generated during each month’s hours of maximum thermal demand.

The prices for power capacity, in AR$/MW-month, for generators not offering DIGO are as follows:

The prices for power capacity, in AR$/MW-month, for generators offering DIGO are as follows:

Prices for generated energy according to fuel, in AR$/MWh, are as follows:

The price for operated energy, regardless of the type of fuel, was set at AR$513/MWh (Jan-24), rose to AR$892/MWh (Feb-24), and after the above-detailed increases, reached AR$1,433 (Jan-25), AR$1,490 (Feb-25) and AR$1,512 (Mar-25).

The price for generated energy at peak hours each month equals the prices for generated energy for the fuel type dispatched between 6 and 11 pm, applying a 2.0 factor in the summer (Dec-Feb) and winter (Jun-Aug) periods and a 1.0 factor the rest of the year.

PPA Res. SE No. 59/23

To promote the maintenance and efficient use of CCGT under legacy energy, on February 7, 2023, the SE published Res. No. 59/23 calling on generators to execute a Power Capacity Availability and Efficiency Improvement Agreement with CAMMESA for a maximum term of 5 years. Adhering units undertake to maintain an 85% net power capacity availability. The PPA offers a US$2,000/MW-month power capacity price, adjusted based on availability, as well as a partial payment of the power capacity price in AR$ under the legacy energy scheme.

The generated energy price was set at US$3.5/MWh for natural gas, US$6.1/MWh for FO or GO, and US$8.7/MWh for biofuel. The price for energy operated and generated at peak hours is set in AR$ according to the legacy energy price scheme.

On March 15, 2023, the SE established the implementation criteria, including: (i) CCGTs partially committed under other PPA could opt in, excluding self-generators with associated industrial or commercial demand; (ii) the term could not extend beyond May 31, 2028; and (iii) power generators could request termination by proving that the supplementary remuneration resulting from the legacy energy does not reflect cost variations.

Under this scheme, Pampa signed the two CCGTs at CTLL and CTGEBA (1,243 MW) and the two GTs at CTEB, making up the CCGT (569 MW). This differential remuneration came into effect in March 1, 2023, and will continue until February 29, 2028.

2024-2026 Contingency Plan

On October 1, 2024, the SE established a plan through Res. No. 294/24 to address the energy grid’s critical condition in the months of greatest demand. The plan incorporates an opt-in scheme recognizing an additional, complementary and exceptional remuneration to promote thermal generation plants’ availability in critical months and hours, effective from December 2024 to March 2026:

• Additional fixed remuneration of US$2,000/MW-month for power, adjusted according to the criticality of the node where the unit is located and availability during peak demand hours, and 50% of this remuneration for power exceeding the committed power.
• Additional variable remuneration in US$/MWh for energy generated during peak-demand periods, according to fuel, technology and criticality:

Note: A distinction is made between nodes with high (1.25), medium (1.00) and low (0.75) criticality, and summer and winter.

The SEE may extend this additional remuneration for 12 further months, subject to the presentation of a maintenance program for each generating unit.

In addition, CAMMESA must implement a strategic dispatch procedure to reduce supply restriction risks during increased consumption periods. The procedure may include dispatch reserve from units nearing the end of their useful life to leverage them during the SADI’s peak demand.

On November 20, 2024, Pampa signed CPB, CTG, CTP, CTLL, CTGEBA and Ecoenergía into the scheme, effective from December 1, 2024, to March 31, 2026.

Unconventional source power generators

The remuneration for energy generated from any unconventional source was set at AR$10,304/MWh (Jan-24) and AR$17,919/MWh (Feb-24); after the above-detailed increases, it reached AR$28,799 (Jan-25), AR$29,951 (Feb-25) and AR$30,400 (Mar-25). The remuneration is reduced by 50% for energy generated before commissioning.

Hydropower generators

The remuneration includes fixed pay for the monthly available power capacity and variable pay for generated and operated energy, as well as generated at peak hours. In addition, a 1.05 factor is maintained on the power capacity to compensate for programmed maintenance’s impacts, and a 1.20 factor for units in charge of maintenance of control structures on river courses and not having an associated power plant.
The following chart shows power capacity prices in AR$/MW-month:

The price for generated and operated energy was set in AR$/MWh:

The price for generated energy at peak hours each month equals the prices for energy generated between 6 and 11 pm, applying a 2.0 factor in the summer (Dec-Feb) and winter (Jun-Aug) periods and a 1.0 factor the rest of the year.

In September 2006, to encourage the development of new generation supply, the SE implemented the Energía Plus program, which allows generators to sell energy to GU300 above their 2005 electricity consumption under freely negotiated US$ prices, provided they have fuel supply and transportation. If they cannot meet the demand, the generator must buy the energy on the spot market.

GU300 not contracting in the MAT must pay the Surplus Demand Incremental Average Charge (Cargo Medio Incremental de la Demanda Excedente, CMIEE) set as the maximum between AR$1,200/MWh and the temporary dispatch surcharge since June 2018 (SE Note No. 28663845/18).

Some Energía Plus contracts are adjusted according to CAMMESA price variations. From January 2021, with the implementation of Plan Gas, Pampa assigns gas supply and transportation to CAMMESA. Currently, CTG, EcoEnergía and CTGEBA provide Energía Plus to different WEM customers with a 283 MW total gross capacity.

However, on January 28, 2025, the SE introduced changes in dispatch regulation and WEM operation, which impacted Energía Plus, limiting new contracts’ renewal and execution. Although the provision does not specify a termination date, they may be extended until October 31, 2025. Upon the contracts’ expiration, Energía Plus would cease to exist and the power plants under this scheme would have to sell their capacity and energy according to market schemes yet to be defined by the SE during the WEM’s regularization process.

To increase generation supply, the SE passed Res. No. 220/07 empowering CAMMESA to enter into ‘WEM Supply Commitment Agreements’ with WEM generators for the energy produced with new generation equipment. These are long-term PPAs denominated in US$, and the price payable by CAMMESA remunerates the investment made by the plant at a rate of return accepted by the SE. CTLL’s TG04 (79 MW) and CTEB’s expansion (279 MW) are remunerated under this scheme until July 2026 and February 2033, respectively.

The power generators awarded under the SEE’s March 2016 tenders entered into a PPA for a fixed price (US$/MW-month) and a variable price excluding fuel (US$/MWh), with CAMMESA as offtake on behalf of distributors and WEM GU. The units remunerated under this regulation are CTLL’s GT05 (105 MW) and CTPP (100 MW) until August 2027 and CTIW (100 MW) until December 2027.

In May 2017, the SEE launched a call for tenders for co-generation and existing equipment’s CCGT closing projects. Awarded projects executed a 15-year PPA for an available power capacity price plus the non-fuel CVP for the delivered energy and the fuel cost (if tendered), minus the penalties and fuel surpluses.

CTGEBA has a 400 MW gross capacity PPA until July 2035. Besides, as from January 2021, CTGEBA assigns gas supply and transportation operations to CAMMESA, and a centralized dispatch order was established considering the fuel designated for generation.

Under Law No. 27,191, in 2016 RenovAr Program’s rounds 1 and 1.5 were launched (MEyM Res. No. 71/16 and 252/16), awarding 1,142 MW under round 1, and 1,281.5 MW under round 1.5. In 2017, round 2 was called, and 2,043 MW were awarded (MEyM Res. No. 275/17). Finally, in 2018, 246 MW were awarded under round 3 (MiniRen).

PEA (100 MW) is remunerated under RenovAr round 1 until March 2040.

All greenhouse gas reductions resulting from projects under RenovAr or any other renewable power project as per Law No. 27,191 should be accounted for by the Federal Government towards its contribution target under the United Nations Framework Convention on Climate Change and the Paris Agreement.

Created in August 2017, this regime allows WEM GU and GUDI to purchase or self-generate clean energy to meet their electricity demand through renewable sources. Projects destined for the MAT ER may not participate in other remuneration schemes, such as RenovAr (Res. MEyM No. 281/17).

Generation surpluses contracted in the MAT ER are remunerated at the minimum price effective for each technology under RenovAr, up to 10% of the power generation. The remainder is sold on the spot market. Moreover, parties are free to define contractual conditions (terms, allocation priorities, prices, and others), except for the maximum price set by Law No. 27,191. However, committed volumes are limited to agreements with generators or suppliers authorized in the MAT ER.

In May 2023, the SE introduced improvements to the regime, prioritizing dispatch from projects combining incremental demand with new renewable generation and over incremental transmission capacity for projects financed at their own cost (SE Res. No. 360/23). These projects can access ‘Referential A Dispatch Priority’ in corridors with limited capacity, guaranteeing a 92% injection probability of the typical annual energy. PEPE VI has qualified for this priority.

PEPE 2, 3, 4 and 6 sell energy under MAT ER (327 MW). The energy is sold under US$-denominated PPA with private customers for an average term of approximately 5 years. Besides, Pampa has sold third parties’ renewable energy since 2019, with a total 15 GWh volume in 2024, contributing to increasing the MAT ER segment’s margin.