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Natural Resources, Energy and Infrastructure

NEW REGULATORY FRAMEWORK TO PROMOTE NON-CONVENTIONAL RENEWABLE ENERGY GENERATION (10 MW – 100 MW)

21 de October de 2025
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On 16 October 2025, the Electricity Regulation and Control Agency (ARCONEL) issued Regulation No. ARCONEL-005/25, establishing a new regulatory framework to promote the development of non-conventional renewable energy generation projects with capacities between 10 MW and 100 MW. The regulation seeks to encourage private investment in clean and sustainable energy generation and to facilitate access to financing.

Below are the 10 most relevant aspects of the new regulation:

  1. Direct Access to generation licenses: Developers may obtain generation licenses directly, without undergoing a public selection process, for solar, wind, geothermal, biomass, biogas, or hydroelectric projects that are not part of the Master Electricity Plan. Priority will be given to projects incorporating storage systems and interconnection networks.
  2. Preferential tariffs: Preferential tariffs, expressed in ¢USD/kWh, are established as follows: solar – 8.036; wind – 7.174; geothermal – 14.662; biomass – 10.525; biogas – 9.250; Pacific hydropower – 6.761; and Amazon hydropower – 6.350.
  3. Preferential tariff duration: Preferential tariffs will remain fixed for 25 years for solar, wind, and geothermal projects; 30 years for hydropower; and 20 years for biomass and biogas.
  4. Developer responsibilities: Developers will bear all risks and costs related to design, construction, operation, and decommissioning. Projects must be connected to the National Interconnected System through the National Transmission System in accordance with current technical standards. Solar and wind projects will be required to include storage systems.
  5. Environmental permits: Each project must obtain the applicable environmental permits based on its characteristics.
  6. Connection feasibility: The connection feasibility process will have two stages: preliminary and definitive. Applications will be processed on a first-come, first-served basis until available capacity is exhausted and must be submitted together with a sworn statement confirming that the project is not part of the Master Electricity Plan. Upon obtaining preliminary feasibility, the developer must request the Qualification Certificate, and after signing the concession contract, request definitive feasibility.
  7. Dispatch: The dispatch of the power plants will be managed by CENACE. Generation will have a variable cost of zero.
  8. Energy storage regulation: ARCONEL will issue regulations on energy storage systems (BESS) within a maximum period of six months.
  9. Capacity expansion: Existing power plants may expand their capacity under this new regulatory framework.
  10. Reversion: In the event of termination of the enabling title, the assets shall revert to the State, which may decline to receive them if they are not of national interest.

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This publication contains information of general interest and does not constitute legal opinion on specific issues. Any analysis will require legal advice from the Firm.