Secretariat of Energy Resolution No. 742/2021.
Power Department Report: Secretariat of Energy Resolution No. 742/2021
Dear Sir or Madam,
Resolution No. 742/2021 (the “Resolution”), issued by the Secretariat of Energy (“SE”), published in the Official Gazette yesterday, amended the terms of Resolution No. 285/2018, issued by the former Ministry of Energy and Mining (“MINEM”).
The Resolution amended the following matters:
1. RenovAr Round 3 (MiniRen) projects were included under the scope of the Resolution.
2. Supply shortage penalties under the Power Purchase Agreements (“PPA”) were included within a payment scheme according to which sellers are allowed to cancel penalties in 12 or 48 consecutive monthly installments.
3. If a seller has chosen to pay penalties in 48 consecutive monthly installments, each monthly installment amount shall not exceed 40% of the projected revenue for such month.
4. The Commercial Operation Date (“COD”) extension of Section 3 of Resolution MINEM 285/2018 was increased to 360 days, subject to compliance of conditions set forth therein.
5. A seller which has not previously requested the COD extension is now allowed to do so, provided certain conditions are met, and PPA penalties related to delay in achieving the Scheduled COD shall be reduced in an amount equivalent to 70%.
6. CAMMESA, the wholesale electricity administrator company, has been instructed to adjust the amounts of PPA penalties accrued or to be accrued according to terms of the Resolution.
Please do not hesitate to contact us should you require any further information on this matter.
Sincerely.
Ricardo Castañeda
José Carlos Cueva
Gonzalo Viña