New business opportunities in the renewable energy sector
After obtaining majority approval in the Chamber of Deputies, the bill that allows residential users and private sector operators to generate their own electricity using renewable sources and sell any surplus to the electrical distribution grid was finally passed into law by the Argentine Senate last week.
The new law implies a change of paradigm in relation to previous legislation, which banned the generation and sale of electricity by anyone other than licensed power supply companies.
Interestingly enough, the new statute resulted from joint efforts of a wide range of partisan political sectors including representatives of the ruling party and various members of the opposition –signaling the current administration’s need to negotiate new laws in congress.
The new legislation establishes the “legal and contractual conditions for the generation of renewable energy by users of the electrical grid.”
Once the new law is regulated and becomes enforceable, all new construction projects will be expected to include the use of a power generation system based on renewable sources.
Furthermore, the new policy involves the creation of the Renewable Energy Fund (FODIS) aiming to provide credit loans, financing, subsidies and to implement measures to foster research, design, development, investment and installation services.
Representatives of the Argentine Chamber of Renewable Energy (CADER) believe that if properly implemented, the new law could be a powerful tool to boost an already dynamic and promising sector.
[By Mariano Jiménez – QLS – Based on the article published in El Cronista, 1/12/17, “Es ley el proyecto que habilita a usuarios a producir y vender electricidad.”]https://www.cronista.com/economiapolitica/Es-ley-el-proyecto-que-habilita-a-usuarios-a-producir-y-vender-electricidad-20171130-0068.html