Argentina raises distributed generation capacity limit

Argentina’s energy department increased the capacity limit for distributed generation systems installed by large users.

Via a resolution, the department raised the ceiling to 12MW from 2MW.

Argentina established rules for distributed renewable energy systems under federal law No. 27,424 of 2017, which has since been modified to incorporate the likes of community user-generators. 

Distributed generation can support energy efficiency and help ease grid congestion stemming from transmission underinvestment for some 20 years, the resolution states.

The regulatory framework establishes three types of user-generator: small (up to 3kW), medium (3kW-300kW) and large (300kW-12MW).

According to a July energy department report, 323 distributors and cooperatives are registered on an associated economy ministry distributed generation platform. Seventeen jurisdictions, among them Buenos Aires city and Buenos Aires province, have adhered to the federal legislation. 

Jurisdictions had asked for the capacity increase, the resolution states. 

Just under 2,000 user-generator projects have been connected, for a combined total of 43.6MW. 

The top three provinces by installed capacity are Córdoba (16.6MW), Buenos Aires (10.0MW) and San Juan (4.28MW).

Overall, commercial/industrial generator-users account for 33.15MW of capacity, residential 5.06MW, official bodies 3.40MW and others 1.99MW.

A further 14MW of distributed generation capacity is in the pipeline.

Given the low penetration of distributed generation in Argentina, especially when compared with that of neighbors Chile and Brazil, the country is seen holding much growth potential in the segment.