Expansion of Argentina’s electric power transmission network

Bomchil - On June 2, 2025, Resolution No. 715/25 of the Ministry of Economy was published in the Official Gazette, declaring the execution of a series of works to expand the electric transport system as a priority. This work will be carried out under the terms of the concession regime of Law No. 17,520, as comprehensively amended by Law No. 27,742 on the Bases and Starting Points for the Freedom of Argentines.

Likewise, the Ministry of Energy was tasked with incorporating a new section into the Regulations for Access to Existing Capacity and Expansion of the Electric Power Transmission System included in the Procedures for Operation Programming, Load Dispatch, and Price Calculation (the "Procedures"), which will include among the expansion modalities the Expansions of Transportation by Public Works Concession.

This section must consider the following aspects, among others:

• Concessionaire remuneration : during the operation and maintenance of the expansion works, a monthly remuneration must be paid directly by the Agency in Charge of Dispatch (OED).

• Source of financing : the works may be financed through the payment of a transport expansion fee by the users of the public electricity transport service of the Wholesale Electricity Market (MEM) who are defined as beneficiaries of the works in question.

• Roles of the parties : the concessionaire will carry out the operation and maintenance of the expansion works under the supervision of the carrier, for which purposes the concessionaire will assume the role of Independent Carrier.

• Transfer of works : once the contractual period of operation and maintenance has elapsed, the concessionaire must transfer the constructed facilities to the National State at zero value, and their operation and maintenance may be assigned by the grantor to the transporter whose system the expansion in question is an integral part of.

The measure aims to address the structural deficiencies and lack of capacity of the transportation system, to prevent potential shortages, collapses, and power cuts.

Likewise, the regulatory adjustments to be introduced in the Procedures are intended to create the conditions for the private sector to carry out the construction, operation, and maintenance of the expansion works of the electric power transmission system.

bomchil.com