Launching and Offers of the RenovAr-Round 1 Program
Through Resolutions 71/16 and 72/16 issued by the Ministry of Energy and Mining on May 18, 2016 the government launched the call for biddings in the Wholesale Electric Market for the acquisition of electric energy from renewable sources under the RenovAr-Round 1 Program (the “Program”). The objective is to cover a total generation requirement of 1,000 megawatts in order to replace the use of fossil fuels by clean energies.

The Program’s objective is to incorporate 1,000 megawatts of power in order to add them to the current energetic offer of the Argentine Republic. This required power will be divided as follows: 600 megawatts of wind power energy, 300 megawatts of solar energy, 65 megawatts of biomass, 20 megawatts of small hydroelectric use, and 15 megawatts of biogas.

The Program was launches within the frame of the National Regime for the Promotion of Renewable Sources of Energy destined to the Production of Electric Energy, established through laws 26,190 and 27,191 that declared of national interest the generation of electric energy form the use of renewable sources. The objective established by the regime is to achieve a contribution from the renewable energy sources of 8% of the national electric energy consumption by December 31, 2017, and of 20% by December 31, 2025.

In addition, promotional benefits were established for those individuals and/or entities that own or have concessions over developments for the production of electric energy generated from renewable sources. The benefits include, among others, early return of the Added Value Tax, Income Tax accelerated amortization, compensation of tax losses with income, those goods affected to the promotional activities shall not be counted towards the Presumed Minimum Income Tax, exemption on tax over dividends and utilities.

Likewise, those beneficiaries that evidence that they have integrated a 60% of the electromechanical installations (excluding the civil works) with Argentine made components, will be entitled to obtain a fiscal certificate for an amount equal to 20% of the Argentine made components that can be used to cancel national taxes.

On September 5, 2016 the Ministry of Energy and Mining informed that a total of 123 bids for a total of 6,366 megawatts were received, exceeding in more than 5 times the Program’s requirement. The bid will be awarded on October 12, 2016.