On September 25, 2026, the Secretary of Energy of the Ministry of Economy published Resolution No. 257/2026 (the “Resolution 257”) which established a new voluntary regime for the termination and amendments of the Power Purchase Agreements from renewable sources (“PPA”) entered into with Compañía Administradora del Mercado Mayorista Eléctrico S.A. (“CAMMESA”) under the RenovAr Program (Rounds 1, 1.5, 2 and 3), Resolution No. 202/2016 of the former Ministry of Energy and Mining (“Resolution 202”), and RenMDI, as follows:
1. Termination of the PPAs
Subject to compliance of certain requirements and payment of 14% of the total amount of the Performance Bond, Resolution 257 allows companies owning projects awarded under any round of the RenovAr Program, or incorporated into the regime under Resolution 202, whether or not they have reached the Commercial Operation Date (“COD”), to request the termination of the PPA.
2. Amendment of the PPAs
Resolution 257 sets forth several complementary (non-exclusive) scenarios under which companies owning projects with PPAs entered into under Rounds 1, 1.5 and 2, or under Resolution 202, may request to amend the PPA, as applicable:
- Setting aside the committed energy obligations as of June 1, 2026, in exchange for accepting a two (2) year reduction of the Supply Period.
- Allowing the company to cover supply deficiencies during a recovery period equivalent to the following four (4) production years.
- In case of penalties for major and/or minor supply deficiencies, allowing the company to amend the PPA by accepting a reduction of the Supply Period proportional to the committed energy not supplied.
3. Extension of the Commercial Operation Date committed under RenMDI call
Projects awarded under the RenMDI call (items 1 and 2) will have the option to request an additional 365 calendar-day period on top of the Maximum Extension of the Commercial Operation Date already provided by the Bidding Terms, in exchange of a quarterly payment of US$7,000 per MW of contracted capacity and accepting a two (2) calendar-day reduction of the Supply Period for each additional day of extension actually used until COD is reached.
In all cases, the company shall waive any administrative, judicial, extrajudicial or arbitration claim against the National Government, the Secretary of Energy and/or CAMMESA arising from causes prior to the amendment or termination.
***
For further information, please contact Nicolás Eliaschev, Javier Constanzó, Daiana Perrone, Milagros Piñeiro, Macarena Becerra Martínez, María Paz Albar Díaz, Victoria Barrueco, Manuel Crespi, Sol Villegas Leiva, Nair Ivanoff Ravnensky, María Emilia Río, Fermín Bartos, and/or Felicitas Orb.