New Limit for the Renewable User-Generators Maximum Power Generation Capacity

On September 3, 2024, the Ministry of Energy issued Resolution 235/2024, which replacing chapter 2 "User-Generators” of the implementing rules of Law 27424. 

The most significant amendment is the increase of the power generation limit applicable to the category “Large User-Generators” for installing distributed generation equipment connected to the distribution network at low or medium voltage from two megawatts to 12 megawatts, making it possible to cover users with higher consumption.

The Resolution maintained the Implementation Rules for the Distributed Generation Regime, established in Resolutions 314/2018 and 608/2023 of the Secretariat of Energy. Thus, the categorization of User-Generators was divided as follows:

1.    According to its composition:
i.    Individual User-Generator. Individual users with a distributed generation equipment to generate renewable energy for self-consumption, and to ultimately inject any excess into the grid. 
ii.    Community User-Generator. A group of two or more users whose demands are supplied by the same distributor but have different supply points. For such purpose, they must previously inform the distributor if they manage a distributed generation equipment linked or not to any of these users’ supply points. Otherwise, the distributor will be responsible for assessing the feasibility of the connection and the associated additional charges.
iii.    Virtual Community User-Generator. A group of two or more users with the same characteristics as the Community User-Generator, except that their self-consumption and injection into the grid is monitored in real time, allowing the balance between the energy demanded and injected to the community system. This category enables: (a) a balance between the energy demanded and injected from the community system, (b) to distinguish the injection of the total self-consumption of the group of users, (c) to value the self-consumed, demanded, and injected energy independently.

2.    These categories may be subdivided according to the power generation capacity:
i. Small User-Generators (UGpe). User-generators whose installed distributed generation equipment is connected to the low voltage distribution grid, whose power capacity does not exceed 3 kW.
ii. Medium User-Generators (UGme). User-generators whose installed distributed generation equipment is connected to the low or medium voltage distribution grid, whose power capacity is higher than 3 kW and up to 300 kW.
iii. Mayor User-Generators (UGma). User-generators whose installed distributed generation equipment is connected to the low or medium voltage distribution grid, whose power capacity is higher than 300 kW and up to 12MW. 

To assess the impact of the injection increase of the energy surplus to the grid into the security operation of the grid, the Resolution establishes that: 

1.    The distributor can only object the injection of the distributed generation surpluses until 12 MW on technical and security grounds, based on studies conducted before the installation of the equipment. 
2.    The Distributor may not impose fees of any kind to complete the preliminary studies. It may also not  impose  fees or charges related to the installation of the distributed generation equipment.
3.    If the technical studies determine an impact on the operational safety of the network, they must be submitted to the Regulatory Entity of the corresponding jurisdiction. The Regulatory Entity is empowered to carry out the inspections within its competence (conf. article 14, Law 27424, as amended).

The Resolution also establishes that the distributor cannot dispute disagreements regarding the surpluses injected within these limitations, and that the energy demanded and injected by the user-generator into the grid—along with the prices per kilowatt-hour corresponding to each—must be reflected in the invoice.

Finally, the value the User-Generator will pay will be the result of the net calculation between the monetary value of the energy demanded and that of the energy injected before taxes.