The Secretary of Energy has issued Resolution 360/2023 (“Resolution 360”) that introduces significant changes in the regulations of the Corporate Renewable PPA Market (“MATER”, for its Spanish acronym, Mercado a Término de Energías Renovables).

Certain large power consumers (i.e., mining, refineries, and other industries) may also have an interest in Resolution 360 whereby such regulation enables the request for dispatch priority in connection with future transmission expansions that may be undertaken by players in the power demand area.

As of the regulations introduced, dispatch priority may now be requested by renewable generators, large users (or a combination thereof).

Resolution 360 seeks (among other goals) to: (a) promote completion of renewable projects under construction, (b) address curtailment matters (by allowing a revamped mechanism of dispatch priority award), and (c) enable financing/funding from the private sector.

We understand that Resolution 360 is a positive step that will help continuing developing the MATER, in turn allowing off-takers to source their consumption needs from the grid through corporate PPA. Some of the matters addressed by Resolution 360 were discussed in the seminar held by our firm with Aires Renewables – a summary of this seminary may be accessed here.

Main changes included in Resolution 360 are:

1.Association between renewable projects associated and large users with an incremental power demand

Under Resolution 360, new renewable projects are allowed to submit before the ISO (CAMMESA) a request for dispatch priority with respect to joint incremental power demand projects equal to or greater than 10 MW.

Such request must be submitted by the renewable generator jointly with the off taker for which the request is being filed.

2. Transmission expansions associated to MATER projects

Renewable generation projects acting under the MATER may undertake transmission expansion works. Such projects will have dispatch priority.

3. Partial curtailment mechanism

For existing transmission facilities with no full availability to assign dispatch priority (i.e., dispatch priority granted for less than the installed capacity of the renewable project), the ISO (CAMMESA) may assign partial dispatch priority.

In any case, under this alternative, generators will be able to deliver energy into the grid with a 92% probability (i.e., 8% curtailment chances).

4. Other modifications

(a) Legacy renewable projects are allowed to enter the MATER

Resolution 360 enables legacy renewable generators under GENREN to act within the MATER, subject to meeting certain criteria and paying an entry-fee.

(b) Amendments to Resolution 281 and complementary provisions

Resolution 360 introduced:

  • For those projects with dispatch priority that have not complied with the committed date for COD with committed commercial operation date are banned from requesting dispatch priority for the following four (4) quarters following the committed date for COD.
  • However, COD may be extended for 720 days if a late COD penalty is paid.
  • Partial COD is allowed in which case dispatch priority will be pro rata. Late COD penalties will be calculated for the capacity that is not operational.

(c) Funding of a Transmission Fund

Finally, Resolution 360 determined that all receivables (e.g., fees, extension requests, relocation requests and access to the MATER requests) will be destined to a fund for transmission expansion works.

 

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