On November 15, 2018, Resolution No. 100/2018 (hereinafter, the “Resolution”) issued by the Secretary of Government of Energy (the “SGE”) has been published in the Official Gazette.
By means of this Resolution, the SGE has launched RenovAr 3 program – MiniRen, addressed to small-medium renewable projects that, if selected as awardees, will enter into a long-term power purchase agreement (“PPA”) with the Wholesale Electric Market Management Company (“CAMMESA” for its Spanish acronym). The tender’s terms and conditions are also attached as Annex thereto.
An outline of the tender terms is summarized below:
| Schedule | • Consultation period: 14/11/2018 – 18/02/2019 • Bid submission: 27/03/2019 • First-stage qualification: 7/05/2019 • Selection of winners: 17/05/2019 • Execution of PPA: 20/05/2019 – 8/11/2019 |
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| Required Capacity by Technology | • Wind/Solar PV: 350 MW • Biomass: 25 MW • Biogas: 10 MW • Landfill Biogas: 5 MW • Small Hydro (PAH): 10 MW |
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| Requirements by Technology | |||||||
| Wind | S.P. | Biomass | Biogas | L.G. | PAH | ||
| Minimum Capacity (MW) | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 | |
| Maximum Capacity (MW) | 10 | 10 | 10 | 10 | 10 | 10 | |
| Maximum COD (days) | 730 | 730 | 1095 | 1095 | 1095 | 1095 | |
| Maximum Price (USD/MWh) | 60 | 60 | 110 | 160 | 130 | 105 | |
| Qualified Bidders | • Natural persons or legal entities (onshore or offshore) • Consortiums (“UTE” for its Spanish acronym) • Trusts |
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| PPA – Payment Priority and Dispatch Priority | • 20-year term PPA as from COD. Generators are entitled to terminate the PPA for convenience upon the tenth (10) year anniversary with no associated penalties. • The PPAs shall have the same payment priority that those PPAs under RenovAr 1, 1.5 and 2. • No dispatch priority will be granted for RenovAr 3 projects. |
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| Payment Guarantees – FODER | • FODER shall provide a short-term guarantee backing up CAMMESA’s obligation to make payments under the PPA. Tenor of this guarantee shall be of ninety (90) days. Adhesion to the FODER by means of the execution of a FODER Adhesion Agreement is required. • A USD 35,000,000 bank guarantee provided by the National Bank of Argentina and BICE also foreseen. • No world bank guarantee contemplated. |
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| Integrity Policy | • Bidders shall provide an Integrity Policy Program in accordance with Law No. 27,401 of Corporate Criminal Liability. | ||||||
| Other relevant matters | • Both trusts and consortiums are authorized to act as bidders. • For wind and solar photovoltaic technologies, hybrid projects are allowed. • A Technical Connection and Commercial Agreement Letter shall be executed with the Distribution Agent and, if applies, the Provider of the Technical Transmission Function (“PAFTT”). • Except for the Province of Buenos Aires, a maximum capacity of 20 MW per province is foreseen. |
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At TRS&M we are available to provide clarifications or further information of any matter addressed above.