|Policy status:||In Force|
|Policy Type:||Economic Instruments>Fiscal/financial incentives>Tax relief, Economic Instruments>Fiscal/financial incentives>Grants and subsidies, Policy Support>Institutional creation, Policy Support, Policy Support>Strategic planning, Regulatory Instruments>Other mandatory requirements|
|Renewable Energy Policy Targets:||Wind, Onshore, Bioenergy, Biomass for heat, Bioenergy, Biomass for power, Geothermal, Power, Hydropower, Solar|
|Agency:||Federal Planning, Public Investments and Services Ministry|
|Renewable Energy Description:|
The Ministry of Federal Planning, Public Investments and Services launched the Renewable Energy Generation Program (RENGEN) to reach the target of having 8% of total electricity come from renewable sources by 2016, as set-out in Law 26 190 of 2007. The public utility ENARSA will implement tenders for a total of 1000 MW of electricity produced from renewable sources, a process initiated in early 2010, and purchase this electricity according to Power Purchase Agreements valid for a fifteen-year period.
Out of these 1000 MW:
- 500 MW are expected to come from wind energy,
- 150 MW from thermal bio-combustion,
- 120 MW from urban waste,
- 100 MW from biomass,
- 60 MW from small scale hydro electricity projects,
- 30 MW from geothermal,
- 20 MW from solar and
- 20 MW from biogas.
New projects or repowered existing plants will benefit from an anticipated Value Added Tax return for capital goods purchased. In addition, the government will fix an energy purchase price, calculated on a project-to-project basis, to guarantee a fair return on investment. The project also creates the Fiduciary Fund for Renewable Energy, administered by the National Council for Electricity (CFEE). The Fund will be financed by a ARS pesos 0.30 /MWh tax on the electricity bill of large distribution and wholesale companies. This fund will then provide a subsidy of ARS pesos 0.9 /kWh to PV producers and ARS pesos 0.015/kWh for facilities up to 30 MW generating electricity from wind, geothermal, biomass, biogas and hydro sources.
Last modified: Wed, 24 Oct 2012 10:21:29 CEST