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4.143. A carbon dioxide tax applies which was introduced to replace the natural gas tax. This tax is a fixed amount per unit of measurement, which is updated on a quarterly basis on the basis of CPI variations. The Law empowers the National Executive to increase the amounts of the tax by up to 25%. For imported products, the tax is assessed together with customs duties and VAT. Products destined for export are exempt from the tax, as are those destined for use by aircraft for international flights and by vessels used for international transport or for fishing. Products to be used as raw material in chemical and petrochemical processes are also exempt from the tax, as is fuel oil intended as fuel for maritime cabotage services. Biofuels in their pure state are not subject to the tax.

4.155. Law No. 26.093 of 19 April 2006 established the Regulation and Promotion Regime for the Sustainable Production and Use of Biofuels, which is valid for 15 years from its approval. Biofuel industry projects in Argentina owned by companies incorporated in the country and authorized exclusively for the development of the activity promoted by the Law may benefit from VAT and profits tax exemption for the acquisition of capital goods or the execution of infrastructure works corresponding to a project, for the duration of the Regime. Biodiesel and bioethanol produced by the holders of approved projects are not subject to the Liquid Fuels and Natural Gas Tax. (...)

4.157. Argentina's installed electricity generation capacity in 2020 was 41,951 MW, of which (...) 10,834 MW (25.8%) from hydroelectric plants, (...) and 3,997 MW (9.5%) from renewable sources (...). Total supply in 2020 was 135,375 GWh, of which 60.8% came from thermal sources, 21.5% from hydroelectric sources, 7.4% from nuclear power, 9.4% from renewable sources and 0.9% from imports. Energy from renewable sources expanded by 63.7% in 2020 compared to the previous year. (...)

4.158. The Argentine network is interconnected to the Brazilian, Paraguayan, Uruguayan and Chilean electricity grids. Two of the largest hydroelectric stations are bi-nationally owned: one by Argentina and Paraguay (Yacyretá); and the other by Argentina and Uruguay (Salto Grande). (...) The majority of hydroelectric power stations are operated under concessions of the State or provincial states that are mostly given to private firms. Electricity sector policy is intended to promote sustainable development and encourage the use of renewable energy.

4.164. Generating companies are subject to a concession regime only if they operate hydroelectric power stations and when capacity exceeds 500 kW. Thermal power plants require authorization only to connect to the grid and are regulated only in terms of public safety and environmental protection. (...).

4.176. Argentina maintains programmes to promote efficient energy use, such as the National Programme for Rational and Efficient Use of Energy or PRONUREE (PE Decree No. 140/2007 of 21 December 2007), and the Energía Plus programme (SE Resolution No. 1.281/06, published on 4 September 2006), which seeks to promote the increase of electricity generation capacity and ensure electricity supply for public lighting and to households, public entities, MSMEs, and small users with consumption of up to 30 kW.

4.177. Argentina also has several programmes to promote renewable energy. The National Directorate of Renewable Generation maintains the National Registry of Renewable Electricity Generation Projects (RENPER). The Regime for National Promotion of the Use of Renewable Energies to Generate Electrical Power sets the objective of increasing the share of renewable energy sources in the electricity matrix to 8% of national annual consumption by 31 December 2017, 12% by 31 December 2019, 16% by 31 December 2021, 18% by 31 December 2023, and 20% by 31 December 2025. The benefits granted by the Regime include accelerated depreciation in the calculation of income tax and early VAT refund for capital goods, civil, electromechanical and assembly works and other related services integrated into new generation plants or existing plants.

4.179. Also within the framework of Law No. 27.191, the RenovAr Programme was implemented in 2016 to promote the use of renewable energy via joint purchases by Large Users through CAMMESA. In Round 1, a total of 29 projects were awarded for a total of 1,143 MW, representing 3.1% of electrical power consumption. In Round 1.5, which included projects submitted and not awarded in Round 1, some 10 wind energy projects were awarded for a total of 765.4 MW and 20 solar energy projects for a total of 516.2 MW. In Round 2, a total of 88 projects were awarded for a total of 2,043 MW; while in Round 3, which was oriented towards smaller scale projects connected to medium and low voltage grids, 38 projects were awarded for a total of 259 MW. In addition, 10 previous contracts were readjusted through Resolution No. 202/2017.

4.180. In 2017, the Regime for the Forward Market of Electrical Power from Renewable Sources (MATER) was established, which regulates MATER contracts and the self-generation of electrical power from renewable sources and applies to consumers with an average demand equal to or greater than 300 kW. (...) The Regime also provides incentives for exceeding the targets set for each year in the form of lower sales charges. [202] (...).

[202] The sales charge, which is payable from January 2019, increases according to the obligatory renewable energy coverage targets. In 2017-18, when the obligatory target was 8%, the charge was zero; in 2019-20, when that target was 12%, the charge was USD 6/MWh; in 2021 22, when the target is 16%, the charge is USD 10/MWh; in 2023-24, when the target is 18%, the charge will be USD 14/MWh; and from 2025, when the target is 20%, the charge will be USD 18/MWh. A percentage decrease of between 20% and 100% is applied to this charge, per user, depending on their average monthly power generated by renewable energy.

4.181. Law 27.424 (Official Journal of 27 December 2017), Regime for the Promotion of Distributed Generation of Renewable Energy to the Public Electrical Power Grid, sets the policies and establishes the legal and contractual conditions for the generation of electrical power from renewable sources by users of the distribution grid, for self-consumption, with the eventual injection of surpluses to the grid. It establishes the obligation of public distribution service providers to facilitate such injection, ensuring free access to the public electricity grid. The Law allows end users to generate their own energy through renewable sources for self-consumption and injection of surpluses into the electricity distribution system and provides for benefits such as tax credit certificates for the user-generator. By the end of March 2021, the Distributed Generation Regime had 411 authorized user-generators, 3.76 MW installed, 12 provinces and 143 registered distributors and electricity cooperatives.