Renewable Energies in Argentina RenovAr Round 2
Moving forward with the ambitious program for fostering investments in the renewable energies field, the Argentine Federal Government has just launched a new open national and international call for tender.
By Resolution Number 275-E/2017, published in the National Official Gazette on 17 August 2017, the National Ministry of Energy and Mining launched Round 2 of the RenovAr Program1.
This new program is aimed to produce 1,200 GW of renewable energies (550 MW of Eolic, 450 MW of solar, 100 MW of biomass, and 100 of biogas and mini hydroelectric).
RenovAr Round 2 has the following cap prices for each type of energy in USD / MW: 56.25 for eolic, 57.04 for solar, 110 for biomass, 160 for biogas, 130 for landfill gas, and 105 for small hydroelectric.
The World Bank´s guarantee for RenovAr Round 2 is of USD 250 million. This guarantee will cover potential events of default of the buyer, the Wholesale Electric Market Management Company (Compañía Administradora del Mercado Eléctrico Mayorista or CAMMESA by its Spanish Acronym).
Consistent with the prior call for tenders of the RenovAr program (Rounds 1 and 1.5), the bidders will have to show a minimum net worth of USD 250,000 per each MW of offered power.
The request for proposals documents have also been approved by the Resolution Number 275-E/2017 and will be sold until October 11th.
The deadline for offer submissions, either technical or economic, is October 19th. The winning bids will be announced on November 29th.
More tax incentives for investments in Renewable Energies in Argentina
Further to the launch of RenovAr Round 2, Renewable Energies in Argentina had also received new tax incentives.
By General Resolution Number 4,101-E, issued by the Federal Administration of Public Revenues and published in the Official Gazette on 8 August 2017, those companies having an approved renewable energy project with the National Ministry of Energy and Mining may either apply the Value Added Tax paid when making investments for the purchasing, manufacturing, production, or definite import of new capital goods, or performing infrastructure, electro mechanic and assembly works, against other national taxes, or request its early repayment2.
1. For a general outlook on the RenovAr program of renewable energies in Argentina, please, see http://www.mondaq.com/article.asp?articleid=533474.
2. To know more about benefits for investments in Renewable Energies in Argentina, please, read the following article on our Legal Blog: http://cspabogados.com.ar/en/investment-incentives-in-renewable-energy-in-argentina/
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