Sebastian Kind talked about project financing, completion of contracts and distributed generation. He also affirmed that the Subsecretary of Renewable Energy will launch a publication with monthly market updates in the upcoming days. It will include a timeline to help visualize the progress that each of the awarded progress has achieved up to that point.
Within the context of the convention for “Renewble Energy and Sustainable Development” organized by the Strategic Forum for National Development, the Subsecretary of Renewable Energy of the Republic of Argentina, Sebastian Kind talked about topics like financing for the renewable projects in RenovAr, Resolution 202 and MATER; he answered questions about the regulations of the Distributed Generation Law and made a series of announcements about the work that will take place in the following days.
In the panel called “Project Financing”, which was moderated by Gaston Fenes, journalist for Strategic Energy, the official detailed the current state of the RenovAr projects and MATER.
“Remember that in Argentina there are 1080 MW in the futures market for renewables and 5000 MW amongst the different rounds of RenovAr and Resolution 202. In the two pathways that currently exist to contract renewables, 9 are already under commercial operation, while 78 are under construction and add something more to the 3000 MW with 4.4 billion worth of investment. At the same time, many of the projects that haven’t started construction yet are on their way to close financially in a proper manner,” he pointed out.
When considering the crisis that the country is experiencing right now, Kind considered that the programs put forward by the government are protected for the country to avoid risk even though they are going to much of the same as the country as a whole.
“Our project with renewables doesn’t escape what is happening on a larger scale in the country. Even though we have protected ourselves sufficiently, in my understanding, the truth is that the situation in Argentina hasn’t changed and we can’t escape the larger situation, and neither can the projects that are subject to much of what we are living,” continued Kind.
Previously, the balance was considered “formidable”, understanding that the present structures are mostly long-term and within levels of tariffs that are very competitive, which means low prices with relation to demand.
With respect to the contracts in dollars, Sebastian Kind conveyed calmness to investors, guaranteeing that the national government will make payments properly in exchange for renewable energy.
“Regarding the promises that have been taken on, including the structuring of what has been designed around the adhesion curve of the trust—the legal document where guarantees are kept is completely intact, and the national government will in no way even think about violating those promises or leaving them dangling,” said Kind.
At the same time, he made clear that the national government did not instruct the remission of the contracts, but rather it instructed that the beginning of the process of remission conform to all of the signed agreements that give a time for substantiation (for important landmarks) and then that CAMMESA, in the case of RenovAr and Resolution 202, rescind the contract.
“The government has already finished with giving instructions for the start of the process of the rescinding of the contracts for what was deemed non-compliance in contractual milestones, and currently has the clock on that which is in the contract. Nobody needs to be informed of that, simply that the party does what it is instructed to do,” clarified the official.
Early Payment of VAT
With the goal of achieving transparency and visualize progress and completion of contracts, Sebastian Kind put forward that the Ministry of Energy is creating a new application the illustrates the progress in the processes carried out to date.
The app consists of a timeline of each of the renewable projects from the beginning of the paperwork, including each of the previous periods until arriving at the point of giving back the VAT.
This application will be up in the next few days on the official web page. This will be added to a new publication with updates coming out monthly from the sector that is run by the Subsecretary of Renewable Energy.
“The idea is to make available data public so that the market can have sensitivity to what is happening on the street and in the countryside truly, beyond only knowing what has been awarded. The project detail equipment ordering, if the project has equipment onsite or in transit—all that is needed for us to feel that the project that has sought out money is being followed through on and really in progress,” stated the official.
Finally, regarding distributed generation, the official announced that the regulatory decree from the law had already finalized the ministerial circuit, so to speak, and that is currently with the legal and technical secretary.
“The regulations of the Law of Distributed Generation is ready. The reason why it has not been released at the moment is because we are waiting to do it publicly together with the resolution and implementation of the program—so that those who benefit from the law that is established,” Kind made clear.
Another important development that is coming up is that which will give a boost to small a mid-size generation projects from renewables all around the country. This is to take advantage of the capacities of the distribution grid (lines between 13.33 and 66 kW in some cases) to develop projects that take advantage of the capacities that are already available in a diagram where it is possible to have projects in a way that is diversified in both technology and on a federal level.
Finally, he also stated that news will be shared in the upcoming days with respect to the possibility of a new tender and the regulations for projects of small to mid-size that had been foreseen by the Subsecretary of Renewable Energy. With respect to such, the official gave no details.
“I am going to be very prudent and wait a few days until things have been properly defined before making it public at the proper moment with clear and correct information,” he clarified.