The Decree 531 regulates and puts into effect Law 27.191 that was adopted earlier in the Argentinian Parliament. Together they create a trust fund for renewables, define the incentives for renewable independent power producers and determine the framework for renewable energy auctions.
The Law 27191 is an amendment to the Law 26190 and extends the national commitment for renewable energy promotion up to 2025.
With regard to renewable the set targets are,
- A share of renewables of at least 8% of total electricity consumption by 31 Dec 2017;
- A share of renewables of at least 12% of total electricity consumption by 31 Dec 2019;
- A share of renewables of at least 16% of total electricity consumption by 31 Dec 2021;
- A share of renewables of at least 18% of total electricity consumption by 31 Dec 2023;
- A share of renewables of at least 20% of total electricity consumption by 31 Dec 2025;
Furthermore, large energy users (demand > 300kW) are obliged to reach these targets individually, or pay a penalty. The price of tradable renewable electricity is capped at US$113/MWh. The law provides a series of tax benefits to new renewable projects (accelerated amortization in income tax, income tax relief in profits re-invested in renewables, VAT refund, fiscal certificates, feed-in tariffs etc.) over a period of 10 years. The law also establishes the Fund for the Development of Renewable Energies (FODER) to support renewables projects. The law covers all main types of renewable sources. The feed-in tariffs previously established through law 26.190 apply to renewable projects sharing electricity into the public grid and have the following values: $0.9/kWh for solar PVs and $0.015/kWh for all other types of renewable energy.