Home Argentina economy Argentina adds new rules to reduce DOC delays for contract renewables

Argentina adds new rules to reduce DOC delays for contract renewables

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Aug 9 (Renewables Now) – The Argentine government introduced a resolution to accommodate to some extent renewable energy developers who had reached the Commercial Operation Date (COD) of their auctioned projects.

The resolution, published last week in the Official Gazette, gives some investors more time to complete their plans and offers options for relief from penalties for missing CODs and delayed start-up of the power supply, such as specified in power purchase contracts (PPA).

Argentina has awarded PPAs to some 4.5 GW of renewable energy projects through its RenovAr auction program and over 200 MW through the so-called MiniRen cycle for small-scale projects, but the commissioning process power plants has been exacerbated by the economic crisis and the pandemic.

In the latest resolution, Argentina’s Energy Secretariat gave developers an additional 360 calendar days to reach the COD, or risk PPA termination, if they demonstrate that projects are at least 70% complete. During this period, developers still have to pay a daily fine for each megawatt subscribed, which can be reduced by 70%.

Project leaders can also choose to pay their fine for non-compliance with COD deadlines in 48 monthly installments with an interest rate of 1.7%, without the fines not exceeding 40% of the monthly remuneration. An alternative is to pay the fine in 12 monthly installments without interest.

The developer has up to 30 business days from the publication of the resolution to request the new benefits, the text said.


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