Initiatives to Boost the Renewable Corporate PPA Market

Resolution No. 360 of the Secretariat of Energy was published in the Official Gazette on May 10, 2023, amending the PPA Market (MATER) regulatory framework. This regulatory framework aims at allowing the development of new renewable projects that, although in regions with abundant resources, face limitations from the deficit of available transmission capacity.

The main amendments approved by the resolution include: 

1)      Association between new renewable projects and large users with an incremental demand

Resolution 360 introduces the possibility for renewable generators to request dispatch priority associated to projects with an incremental power demand equal to or greater than 10 MW. The awarding of associated priority dispatch will be for future demands seeking to secure the power consumption total or partially with new renewable generation. 

Annex I of Resolution 360 establishes the requirements to be filed before CAMMESA to request this type of priority. These include an agreement (“acta acuerdo”) between the renewable generator and the off-taker of the new renewable energy.

2)      Priority dispatch through transmission extensions associated to MATER projects

The resolution defines transmission extensions associated to MATER projects as “the transmission extensions that may be completely built and paid by one or more renewable generation projects developed to commercialize such generators’ energy”.

The project or projects of renewable energy carrying out works at their expense may reserve the increase in transmission capacity awarded as priority dispatch produced by the extension associated with the MATER projects.

Annex II of Resolution 360 establishes the scope of the award of priority dispatch regarding the extension of transmission associated with MATER projects, and establishes that the associated works include the construction and/or electrical substation, grid adjustments, new transmission lines, etc.

3)      Priority dispatch type Reference A

Resolution 360 instructs CAMMESA to implement a mechanism for awarding priority dispatch type Reference A regarding corridors where there is no availability to fully award priority dispatch at all hours of the year.  

This mechanism will allow renewable generators to secure priority dispatch type Reference A, provided the existing limitations allow an injection of energy with an expected probability of 92% over the expected annual energy, and until the necessary transmission works that will end the limitations are completed. 

4)      GENREN projects are allowed to enter MATER

Resolution 360 authorizes renewable generators that have executed PPAs within the GENREN Program to commercialize their renewable energy through MATER as of the month following the termination of the relevant PPA.