Electricity: Increase in the emissions tolerance levels

The Secretariat of Energy has enacted various resolutions stating the maximum allowable emissions for power generation based on fossil fuels. Recently, the Secretary relaxed these caps for the use of liquid fuels.

The adoption of these measures has been argued on the following bases:

(i)           The current national, regional and global energy scenario limits natural gas provision which therefore must be replaced by liquid fuels.

(ii)           The need to continue the operation of existing GT and CCGT facilities at high rate levels of liquid fuel use to ensure the domestic power supply until the generation system is readjusted.

(iii)          The existence of generation equipment that would require unscheduled and non envisaged investments if they were to reach emission limits currently imposed on operating with liquid fuels.

(iv)         The current generation supply restrictions that would result from the refurbishment of existing equipments should they be forced to comply with the emission limits currently in force.

(v)          The convenience of adjusting the fuel oil specifications to the most traded international quality given the current need of importing fuel oil for power plants consumption.

1.           Nitrogen Oxide (NOx)

Resolution SE No 225/08 issued on April 28, 2008, adopted an exceptional and temporary procedure to comply with maximum limits on emissions for liquid fuel fired power generation.

This Resolution has relaxed until 2010 the compliance with emission standards set out in Resolution SE No 108/01 for those power generation plants whose operation was authorized before 2001.

The consequence of this exceptional procedure is to double the NOx emissions cap allowed for the liquid fuel fired power generation under previous Resolution SE No 108/01.

The generators must obtain special clearance from the Secretariat of Energy. For that purpose, generators must submit:

(i)           documentation supporting changing conditions regarding fuel provision; and

(ii)           technical reports resulting from trials, tests, or operation periods with liquid fuels; and

(iii)          a commitment to technological upgrading of the facilities enabling them to comply - as from 2011 - with the maximum emission standards set out in Resolution SE No 108/2001.

2.    Sulphur (S)

Resolution SE No. 150/2008 issued on April 10, 2008 amended Resolution SE No. 1283/06, which sets at 7,000 parts per million by weight the maximum specification of sulphur content in fuel oil traded in Argentina, raising the maximum allowable sulfur specification content to 10,000 parts per million (mg/kg).

Unlike the attenuation of the emission level of nitrogen oxide described above, the modification to the permitted sulphur levels in fuel oil is not stated as a temporary and exceptional regime, but as a permanent alteration of the values set in 2006.

Compliance with these resolutions set out by the Secretariat of Energy does not excuse the full observance of environmental quality standards ruled in different jurisdictions which include, in some cases, higher standards of gaseous emission quality than those foreseen under federal regulations.