The Executive Branch has enacted Law No. 7599/25, “Modernization of the regime regulating and promoting the generation of electric energy from non-conventional, non-hydropower renewable energy sources” (the Law), which repeals Law No. 6977/23 and establishes a new legal framework applicable to the generation of electricity from renewable energy sources other than hydropower, including solar, wind, biomass and geothermal energy.

The purpose of the Non-Hydropower Renewables Law is to promote, regulate and foster the development of such projects, with a direct impact on the structuring of private generation initiatives, self-generation and cogeneration schemes, and direct supply arrangements to large electricity consumers. The Law further provides that the Executive Branch shall issue implementing regulations within three months from its enactment.

Outlined below is a summary of ten key aspects of the Law:

  1. Key categories: the Law distinguishes, among others: (i) Generators, engaged in the generation and commercialization of electricity from non-hydropower renewables, whether supplied to the National Electricity Administration (Administración Nacional de Electricidad – “ANDE”) or to a large consumer; (ii) Self-Generators, primarily engaged in generation for own consumption, with the possibility of injecting surplus energy into the grid and/or supplying ANDE or a large consumer, subject to certain conditions; and (iii) Cogenerators, engaged in the combined production of electric energy and useful thermal energy, with the possibility of supplying electricity to ANDE or to a large consumer, in accordance with the Law.
  2. Procurement by ANDE: the Law provides for the procurement of electricity by ANDE, generally through public procurement procedures (including international tenders), with supply agreements of up to thirty (30) years. The Law also includes parameters relevant for contractual structuring, such as the possibility of payment in foreign currency, and permits the inclusion of arbitration clauses, as provided in the applicable contracts.
  3. Supply to Large Consumers: the Law authorizes power purchase agreements for electricity generated from non-hydropower renewables with large consumers, defined as entities whose maximum demand is equal to or greater than 30 MW at a single consumption point, exclusively for own consumption and not for resale to third parties. Large consumers may be supplied by ANDE and/or by self-generators, cogenerators or generators, including on a simultaneous basis, under contractually agreed terms.
  4. Exports: the Law expressly contemplates the export of electricity generated from non-hydropower renewables.
  5. License requirement: generation projects from non-hydropower renewables with an installed capacity exceeding 1 MW are required to obtain a license, which may be granted for a term of up to thirty (30) years and is renewable in accordance with the implementing regulations.
  6. Simplified regime for small-scale projects: self-generators and cogenerators with an installed capacity of up to 1 MW are not required to obtain a license, but must be registered with the relevant registry, in accordance with the implementing regulations.
  7. Grid access and wheeling charges: the Law provides for access to the transmission and distribution networks, subject to technical feasibility studies and the execution of the relevant wheeling (transport) and ancillary agreements. In the case of supply to large consumers and for export purposes, wheeling charges shall apply in accordance with the technical and economic criteria determined by the competent authority.
  8. Surplus energy and grid injection: self-generators and cogenerators may inject surplus energy into the grid. ANDE or the relevant concessionaire is required to accept such surplus where the injected capacity does not exceed 1 MW; injections above such threshold are subject to agreement between the parties.
  9. Surplus energy – reference tariff: surplus energy injected into the grid shall be remunerated based on a reference tariff, primarily through credits applied to the electricity bill, with the possibility of monetary compensation under the terms and conditions to be set forth in the implementing regulations.
  10. Applicable incentives: projects involving non-hydropower renewables may benefit from existing incentive regimes, including those aimed at promoting investments and industrial development, subject to applicable requirements and conditions.