New law on renewable energy: why self-generate in homes, shops and industries

The Energy and Fuels Commission of the National Chamber of Deputies is discussing a bill that legislators from various political forces – officialism and opposition – that authorize private users to generate clean energy through solar panels, Wind turbines, hydroelectric turbines, biodigestors, among others.

Once approved in Congress and regulated by the Executive Branch, businesses, industries and private households will be able to sell the surplus they obtain during the hours in which the equipment used generates more energy than is being consumed. What allows the law that the distributors of each zone offset in the invoices the economic difference that results from the electric exchange.

These days, all the actors involved are contributing suggestions to the bill, which marks the interest to develop this interesting market: cooperatives, distributors, large and small users, provincial governments, entrepreneurs, technology providers, among others, have raised Their points of view, enriching the debate.

After more than a year of discussion, it is noteworthy that there is a consensus between the private sector, legislators and the Ministry of Energy and Mining to approve this new law that will gradually allow a change in the paradigm of electric energy use, bringing the generation Consumption.

At CADER, we believe that distributed generation is the most virtuous model to generate electricity, since it reduces the emission of greenhouse gases, generates awareness in the users about the efficient use of energy, develops the value chain in the regional economies , Generates employment and diversifies the matrix by taking advantage of existing resources in the provinces, in addition to reducing losses and costs of electric power transportation.

While we value, we contribute and accompany the process of expansion that the large-scale market is experiencing thanks to the launch of the “RenovAr” Program, we are convinced that, simultaneously with the construction of the 59 large plants awarded at auctions, it is vital to Renewable energy generation in a “distributed” way for households, businesses and industries to begin to be “prosumers” of renewable energy.

Currently there are provinces such as Santa Fe, Salta, San Luis, Neuquén (and others) that are independently working on regulations, but it would be important to sanction a law unanimously by all political forces at the national level. This would further push the development of the market, as long as the conditions are attractive to individual users, with convenient tariffs and financing plans for the purchase of equipment.

It is vital to apply incentives during the regulation of the law in a way that allows effective market development. In this sense, it will be necessary to continue working to favor distributed generation that exceeds small users, such as companies, households and / or businesses, which do not have the scale to compete in large tenders.

This segment requires a new regulatory framework. Reference is made to a universe of consumers, potential prosumers of renewable energies: industrial parks, water pumping systems, populations with weak electricity networks to be near the end of the lines, among others. These are key applications for the development of regional economies and local SMEs.

The law, however, is very useful, but for these reasons it would be necessary to rename the project in order to include this niche of users potentially prosumers of renewable energies. In this sense, since our institution for many years we have been working to establish a regulatory framework that allows a virtuous development in the market, in line with the group of players that are part of the Alliance for Renewable Energy in Argentina (AERA ).

For decades the National State subsidizes fossil fuels, generating unfair competition that delay the process of expansion of wind, solar, biomass, biogas and hydroelectric power. However, the world is advancing in this direction at great speed, due to the degree of technological development achieved, which led to a great reduction of costs.

It is in this context that our organization has been developing, coordinating and collaborating along with national legislators from different political forces – Cambiemos, FPV, Front Renovador, Socialismo, UCR, Bloque PJ -, authorities, and other associations of the sector, Technical, economic and legal aspects of distributed generation.

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