Argentina Plans to Extend Renewable Energy Tax Incentives for 20 Years, Abolish Mandatory Intermediary Requirement for Major Users and Permit Direct Supply or Self-Generation.
A ruling-party deputy in Argentina has submitted a bill proposing to extend tax exemptions for renewable energy investments by 20 years until December 31, 2045. The initiative requires phasing out the mandatory intermediary mechanism that forces large users to procure electricity solely through the Wholesale Electricity Market Management Company (CAMMESA), while allowing them to enter into direct power purchase agreements with generators or retailers and granting permits for self-generation projects.
The bill explicitly mandates promoting technological diversification and regional distributed development, including the introduction of smart metering and demand response systems to optimize renewable energy integration. Notably, the text incorporates detailed regulatory definitions to enhance legal certainty, aiming to reduce investment disputes and protect vested rights under the existing framework. The proposal has gained support from ruling-party legislators and industry representatives, while forming policy synergy with the electricity wholesale market deregulation reform scheduled to take effect in November 2025.
This legislation continues Argentina’s renewable energy development path established since the enactment of Law 25.019 in 1998 and Law 26.190 in 2006. The 2015 Law 27.191 set a national target of achieving 20% renewable power supply by 2025, which has already driven the installation of approximately 6,500 MW of renewable projects meeting 18% of the country's electricity demand, with accumulated investments exceeding $7.5 billion and an additional $4.5 billion worth of projects currently under construction.
