The Government studies an increase in rates to finance investments

The Government analyzes “incorporating a scheme of additional remuneration complementary and exceptional” to the generators of electrical energy that have old and inefficient thermal machines to finance your investments and avoid have to resort to power outages scheduled next summer.

The initiative is expressed in a draft of the resolution that the Ministry of Energy will publish in the coming days. As a consequence, The average cost of the electrical system would have an increase, which will be transferred to demand (homes, businesses and industries) through a rate increasesince the national State wants to withdraw more and more subsidies.

In exchange, generators that have between 2,000 and 3,000 MW of power in turbo steam machines and alternative/diesel engines – gas, diesel or fuel oil – are out of service. They will have a financial incentive to improve their equipment and make it available to the network. In the sector they estimate that this power could exceed 5,300 MW, although official sources rule it out.

The official goal is mitigate risks of being left without sufficient energy generation at peak consumption – demand could reach up to 30,700 MW between February and March -, avoiding scheduled power cuts for residential users like 35 years ago or a black out -blackout- like the one on June 16, 2019.

The improvement in remuneration would be based on the new power available (fixed) and to energy generation (variable) “that promotes the availability of thermal generation plants in critical months and hours” and would be paid between December 2024 and August 2027.

The companies that could contribute more energy to the system are Central Puerto, Pampa Energía, AES, Albanesi and Secco, among others.

As far as he could know Clarion, These machines today are charging about 4,500 dollars per MW per month (about US$ 6 per megawatt-hour, MWh) in fixed remuneration and another 5 dollars in variables, against a cost of putting these equipment into operation of approximately 15 to 20 dollars per month. MWh, a technical specialist from the private sector explained to this medium.

Energy officials are currently evaluating quadrupling the fixed price to about US$18,000 per MW-month (US$25/MWh).

“The engines consume oil and their preventive maintenance every 12,000 hours is very expensive. At current prices they are money-losing machines, but they can be tuned at a higher price. The turbo steam engines, on the other hand, are old, have more than 40 or 50 years. No matter how much you want to prepare an old car for a race, you are not going to win it,” compared an executive from the electrical sector, off the record.

The incentives planned by the Government come after in July cancel the award of the TerConf tender which the previous management had left ready to reinforce the thermoelectric park with average prices around US$ 17,000 each MW-month.