Renewables

Argentina Moves to Boost Renewable Energy Market with New Regulations

Luana Torruella
February 13, 2025
3 minutes

Argentina Moves to Boost Renewable Energy Market with New Regulations: A Step Towards a Net-Zero Future

Argentina has taken a crucial step towards a more flexible and sustainable energy market. The recently introduced Resolution SE 21/2025 by the Secretariat of Energy aims to revitalise the Renewable Energy Term Market (MATER) by allowing greater participation from distributors and making it easier for Large Distribution Users (GUDI) to secure clean energy contracts. This regulatory shift has the potential to attract new investment in renewables and accelerate the country’s transition towards a net-zero energy system.

Market Context and Previous Challenges

Since 2022, energy distributors in Argentina have been authorised to participate in MATER, yet progress has been hindered by significant regulatory barriers. One of the main obstacles was the requirement for GUDI to register as Wholesale Electricity Market (MEM) agents, which restricted their ability to return to collective purchasing and forced them to wait five years before re-entering.

Additionally, uncertainty surrounding how renewable contract prices would be incorporated into electricity tariffs discouraged new agreements. The Argentine Association of Electricity Distributors (ADEERA) highlighted that these rigidities have prevented the market from evolving into a more dynamic and efficient system.

Resolution SE 21/2025: A Strategic Shift

The new regulation eliminates these restrictions, allowing GUDI to access the MEM without obstacles and to return as seasonal consumers if required. This marks a significant policy shift that could create a more flexible and investment-friendly renewable energy market.

From a practical perspective, this reform enables distributors to play a greater role in the energy transition, making it easier for large industrial consumers to source renewable energy. This, in turn, could increase demand for renewable contracts, encouraging investment in wind, solar, and hydroelectric projects across Argentina.

Impact on the Energy Transition and Net-Zero Goals

Achieving a net-zero energy system requires eliminating regulatory barriers and fostering a stable investment environment. Argentina holds immense renewable energy potential, with vast solar resources in the northwest and world-class wind energy in Patagonia. However, to fully leverage these advantages, it is essential to have a flexible regulatory framework that attracts developers and consumers alike.

By opening up the market, this regulation will help accelerate the penetration of renewables in Argentina’s energy mix, reducing dependence on fossil fuels and contributing to the decarbonisation of the electricity sector. This shift aligns with global trends, where large industrial consumers are actively seeking clean energy supply agreements to reduce their carbon footprint.

The Role of Net-Zero Circle in Energy Transformation

In this evolving landscape, Net-Zero Circle, the clean energy innovation and collaboration community of IN-VR, plays a vital role in connecting investors, technology leaders, and governments with strategic opportunities in the sector. Through our global network, we facilitate access to disruptive technologies, financing, and partnerships that drive the expansion of renewable energy projects.

Our mission is to democratise access to opportunities in the energy sector, promoting investment in sustainable solutions and removing barriers that slow down the transition. The liberalisation of Argentina’s renewable energy market is a prime example of how regulation can adapt to support clean energy adoption and accelerate the path towards net-zero.

A Horizon of Opportunities

Resolution SE 21/2025 is a step in the right direction for Argentina and the wider region. If the country continues to remove regulatory barriers and provide stability for investors, it could position itself as a Latin American leader in the energy transition. However, the success of this initiative will depend on the effective implementation of the new rules and the government’s commitment to a predictable and attractive regulatory framework.

At Net-Zero Circle, we will continue to drive discussions, connect key stakeholders, and promote innovative solutions to accelerate global decarbonisation. The energy transformation is already underway, and Argentina has the opportunity to lead the way in Latin America.

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