Argentina: Renewable Energy Projects In Argentina - Legal Issues And Challenges

Last Updated: 15 June 2017
Article by Tomás M. Araya, María Inés Corrá, Ximena Daract Laspiur, Laura Zinnerman, Martina Monti and Magdalena Carbó
Most Popular Article in Argentina, June 2017


The Argentine Energy Sector

In recent years, the Argentine energy sector has faced several challenges. Due to the lack of incentives to foreign and local investors and the de-dollarization of tariffs, among other measures, a once self-providing market had to turn to foreign imports in order to satisfy the growing local energy needs. A set of measures undertaken by previous Administrations since the year 2002 led to a deepening of the energy crisis, which continued for more than a decade and only now appears to be coming to an end as a result of the new policies designed by the current Administration in order to promote the generation of new energy sources and proper development of existing ones.

The beginning of the energy crisis was not unforeseen, as it was a result of years of public emergency in the country. Indeed, after a widespread economic, social and political crisis burst in late 2001, several emergency laws were enacted in order to reorganize the financial system and reactivate the country's economy. Law 25,561 enacted in January 2002 and Decree 308/ were the first of these emergency regulations aimed at facing the crisis, followed by extensions implemented in the years 2006, 2008, 2009, 2011, 2013 and 2015. The policies adopted by the government in place since 2002 eliminated incentives for foreign and local investment, particularly in the Energy sector. In fact, the end of the convertibility regulations and the so-called "pesification" of the economy deeply affected the tariff regime for measured services in force in Argentina and, consequently, creditors under such regime.

In January 2007, law 26,190 was passed, which set a renewable portfolio standard to regulate emissions and a target energy generation from renewable sources. However, the policies adopted by the law were not successful due to the context in which the law was passed and its ambitious nature. It failed mainly due to investors' lack of confidence in the Administration in place at that time and in the project itself. Although it did not meet its objectives, it entitled the government to launch the Genren program in 2009, the first renewable generation program aimed at promoting electricity generation from renewable sources. Nonetheless, the program's success was also halted a few years later, mainly due to the lack of international funding sources and scarcity of national sources2. The only projects which were successfully built were those that were able to obtain credit in the national market or did not require external financing in order to carry out its operations.3

From the year 2010 on, the lack of local generation of energy led to a strong public fiscal imbalance, as Argentina had to import gasoil from Venezuela4, electricity from Brazil5 and liquefied natural gas ("LNG") from Bolivia6. LNG was widely used during this time and it was transferred to Argentina by rented regasification ships, with all these imports causing a major impact on the country's balance of payments. These imports were all organized and completed by Energía Argentina S.A. ("ENARSA"), a company wholly owned by the government. Energy contributed to approximately 5% of the nation's GDP, 6% of its export revenue and 17% of its imports7. The high subsidies for the energy sector in place were also a source of large government spending that proved unsustainable.

After the 2015 elections, with a new Administration in office led by President Mauricio Macri several reforms were adopted in order to relaunch the energy sector and particularly to promote the use of renewable energy sources. For instance, in order to tackle law 26,190's deficiencies, law 27,191 was passed in October 2015. The Macri Administration went on to develop a regulation for law 27,191, after which Argentina began to accept tenders for new renewable energy projects with a new government program called RenovAr8. At the same time, the new Administration declared the emergency in the electricity sector in order to allow the government to adopt appropriate measures directed to gradually normalize the prices of the wholesale electricity market and the distributors and transporters' tariffs9. The Secretary of Electric Energy ("SEE") also called for proposals of integral projects for the development of the electricity infrastructure which, if accepted, would be subject to a public bidding process for their construction and operation10.

To read this Report in full, please click here.


2. International Centre for Trade and Sustainable Development. "La promoción de energías renovables en Argentina: el caso Genren." N.p., 14 July 2014. Web. 30 May. 2017. (

3. The program's target was to incorporate 1.000 MW into the wholesale market, and although 895 MW were awarded as a result of the first tender in December 2009, only less than 10% of the awarded projects were duly completed.

4. "Convenio Integral de Cooperación entre la República Argentina y la República Bolivariana de Venezuela" signed in Caracas on April 6, 2004.

5. See the Secretary of Energy Resolution 434/2004, which called for CAMMESA to purchase electrical energy from Brazil

6. "Bolivia." The Observatory of Economic Complexity. MIT Media Lab, n.d. Web. 24 Feb. 2017. (

7. Argentina's Energy Transition: The Macri Government's Vision. Rep. N.p.: Institute of the Americas, 2016, p. 1.

8. The RenovAr Program, which will be explained in detail in Section 6.1 of this report, is a public tender program that issues a series of fiscal benefits and financial support mechanisms in order to develop renewable energy projects.

9. See Decree No. 134/3015 and Ministry of Energy and Mining Resolutions No. 6 and 7/2016.

10. See Resolution SEE No. 420 E/2016.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.