Under Resolution No. ARCERNNR-031/2023, effective since November 1, 2023, the Agency for Regulation and Control of Energy and Non-Renewable Natural Resources (“ARCERNNR”) issued Regulation No. ARCERNNR-008/23 containing the “Framework for Distributed Generation Enabling Self-Sufficiency Among Regulated Electric Energy Consumers” (“Regulation”).
This framework establishes the requirements and procedure to install and operate a distributed generation system for self-sufficiency (“SGDA”). An SGDA comprises equipment generating electrical power for the self-sufficiency of individuals or entities with supply contracts with an electricity distribution company (“Regulated Consumers.”)
The procedure to install and operate an SGDA is carried out before the electric distribution and commercialization company (the “Distributor”) in whose service area the Regulated Consumer is located.
Key features of an SGDA, as per the Regulation, include:
- Nominal power limitations are based on whether it injects electrical energy into the distribution network. If it does, the nominal power is limited to 2MW. In cases where it does not inject electrical energy, the nominal power is determined by both the maximum power demand registered by the associated Regulated Consumer with the SGDA and the approved connection capacity by the Distributor.
- It is possible to use energy storage equipment.
- It can operate under the following self-supply modalities:
| Individual | Multiple |
| The SGDA and the Regulated Consumer are in the same property. | The SGDA and the Regulated Consumers are in the same property (in a condominium or under a horizontal property regime). |
| The SGDA and the Regulated Consumer are in different properties. The property where the Regulated Consumer is located must not be a condominium or declared under a horizontal property regime. | The SGDA is in a property, and the Regulated Consumers are concentrated in another property constituted in a condominium or declared under the horizontal property regime. |
| The SGDA and the Regulated Consumers are in different properties; the latter belong to the same legal entity. |
The term during which a Regulated Consumer may operate an SGDA depends on the useful life of the generation technology used, which is limited as detailed below:
| Technology | Useful life (years) |
| Photovoltaic | 25 |
| Wind | 25 |
| Biomass | 20 |
| Biogas | 20 |
| Hydraulic | 30 |
The Regulated Consumer must own the SGDA or acquire ownership at least 5 years before the end of the authorized term of operation of the SGDA. The Regulated Costumer can engage third-party services for installation, operation, maintenance, dismantling, and other SGDA-related activities.In excess energy production, a credit is generated for the Regulated Consumer, which can be offset against its consumptions from the distribution network. The compensation’s treatment varies based on the applicable tariff: (i) general tariff without demand, (ii) general tariff with demand, (iii) general tariff with hourly demand.
The Regulation, published in Official Registry Supplement 441 on November 21, 2023, can be accessed through the following link:
NOTE: The previous text has been prepared for informational purposes. CorralRosales is not responsible for any loss or damage caused as a result of having acted or stopped acting based on the information contained in this document. Any additional determined situation requires the specific opinion and concept of the firm.