On July 22nd, Emergency Decree No. 822/16 (the
"Decree") was published, introducing
important changes regarding electricity generation from renewable
sources. The declared purposed is to provide legal certainty and
enable financing for both local and foreign investors.
The Decree introduces changes to Law No. 27,191 and regulates
provisions related to the Procedure for the Open Call to supply in
the Wholesale Electricity Market ("MEM",
for its acronym in Spanish language) electricity from renewable
generation sources denominated the "RenovAr Program (Round
1)" ("RenovAr").
The main aspects of the Decree are set out below.
- A budget cap of U$S 1,700,000,000 has been
established to be assigned to promotional benefits under Law No.
27,191 for the current fiscal year. It is foreseen that the surplus
shall be automatically transferred to the upcoming fiscal
year.
