Renewable

Energy
Industry
in Argentina
2 Renewable Energy Industry
Investment Opportunities
Infrastructure & Energy

Current energetic crisis in Argentina has

driven a new law which provides incentives
to generators willing to invest by setting new
target growth in renewable energy production
over total energy produced. Significant
investments in the industry are expected.

20%
20
% of renewable energy over
total energy consumed

Expected
15 Investment
10 8%
5
2% Renewable
0 Energy
2015 2017 2025

+ 10 Gw > US$ 15 bn

Argentina is rich in variety of weather conditions

that provides a high potential of renewable
energy generation across the entire territory.

0,01 Gw 0,18 Gw
Actual solar Actual wind
installed capacity installed capacity

1-2 Gw 5-6 Gw
Expected solar Expected wind
development development

Total installed capacity in the country: 33 Gw approx.

EY Argentina 1
 1 2
Legal Framework
Purpose:
• Diversify the National energy matrix
• Expand the installed power capacity
+ RenovAr
• The first Renewing Plan tender
(RenovAr”) is submitted with the
objective of adding significant
megawatts of power within two years
• Contribute to mitigate the Climate Change to the country’s energy supply.

Renewable Energy Generation Market

Timeline
2009 2016 2017
Law 26.190 was officially Ruling decree 531/16 was First Renewable Energy
published. published. This decree explains Target: 8% by Dec.
further the law and its goals.

1 3 5
2 4 6

2016
TENDER RenovAr (Round 1)

2015 Resolution MEyM 71/16 and 2025

Resolution MEyM 72/16.
Law 27.191 was Renewable Energy Target:
officially published. 20% by Dec. 31, 2025.

2 Renewable Energy Industry

Renewable Energy Generation Market
Legal framework

Scope

• Different mechanisms to reach

the renewable energy target:
––Individual PPAs
Large Users demand >= 300 kW
––Self or co-generation
––Joint purchase mechanism
through CAMMESA

Tax promotional benefits

• Accelerated Depreciation of applicable assets.

• Tax Loss statute of limitation extended to 10
Developers Income Tax years (standard is 5 years)
• Deemed Minimum Income Tax: Temporary
exception of the tax

Scope
• Early Refund of VAT Inputs that exceeds VAT
Eligible Projects Value Added outputs
• Projects in new Tax • Tax credit on locally supplied CAPEX to be
facilities applied to the payment of federal taxes
• Extensions or
re-potentiation of
existing facilities Other taxes • Exemption of Import Duties

EY Argentina 3
Serving the renewable energy markets
Advising companies, governments and investors across the renewable
energy market

1 REGULATION

Regulation
Support companies to work
within regulatory frameworks
2 INFRASTRUCTURE
Asset finance
Primary and secondary financing
for energy infrastructure
transactions, including strategy,
fundraising, acquisitions and
disposals

Strategy
EY Services

Capital Assets
3 CORPORATE FINANCE SERVICES

Capital raising
Optimizing, raising, investing and
preserving capital for non-infrastructure
energy transactions and investments

Acquisitions and disposals

4 ENERGY USERS Buy-side and sell-side lead advisory for
upstream and downstream supply chain
Strategy transactions
Supporting the development and
implementation of portfolio or
energy mix sourcing strategies

Op Con
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We understand Our services

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how to drive value span all stages

across the capital of the asset
agenda capital lifecycle
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4 Renewable Energy Industry

Our services include:
• Advisory
• External and internal audits
• Legal and regulatory compliance
• Tax compliance and advisory
• Custom and Central Bank advisory
• Environmental and Financial advise, due diligence and structuring services
• Contractual transaction implementation (drafting, negotiation, etc.)
• Valuations and business modelling
• Bankability and feasibility studies
• Risk management advisory

EY Argentina 5
Why EY?
Key to the value EY Argentina brings is our
ability to develop a robust, global and credible
financial case for action.
Our local team offers a multidisciplinary team
of professionals (including, public accountants,
economists, lawyers and engineers) in advisory,
assurance, tax, transactions and law, who
understand the corporate resource and energy
agenda, its key challenges and leading solutions.
EY can act as the single interface to assess the
possible savings from energy efficiency and/
or renewable energy strategies. We oversee the
procurement, implementation, financing and
performance of the related investment, helping
it achieve a permanently competitive cost of
electricity, on appropriate terms.
In addition, our team is leveraged by our global
network specialized in each service line in
6 Renewable Energy Industry
general and in the renewable energy sector in
particular.
EY has one the world’s largest global corporate
finance teams dedicated to the energy sector.
We work with developers, investors, utilities
and banks to help fund, deliver and structure
related infrastructure wherever client facilities
or operations are located.
Our services addressing the resource and
energy agenda are informed by unique insight
stemming from our extensive advisory,
transaction, tax and legal experience and our
ongoing market analysis.
Working with centrally managed cross-border
teams and with single responsible country
contacts, our controlled, efficient services
around the world assist your business wherever
required.
Renewable
Energy Country • Produced quarterly since 2003
Attractiveness
• Distributed to over 10,000 industry
Index (RECAI) specialists and investors
– a leading
industry • Reaches over 750,000 through social
media and press coverage
publication
Leveraging our market, industry and • Publically available online
technology expertise across the globe, the
RECAI ranks 40 countries worldwide on the • Further information:
attractiveness of their renewable energy
investment and deployment opportunities. • Visit www.ey.com/recai or contact our
It is widely regarded as providing leading RECAI editor, Klair White (kwhite@
market commentary, analysis and outlooks ey.com)
on key global and regional trends across the
renewables sector.

EY Argentina 7
Contacts
Fabián Gomez
Partner – Advisory Services
Buenos Aires, Argentina
Email: fabian.gomez@ar.ey.com
Tel:+54 11 4318 1778

Pablo Gabriel Decundo

Partner – Assurance Services
Buenos Aires, Argentina
Email: pablo.decundo@ar.ey.com
Tel:+54 11 4515 2684

Daniel Dasso
Partner – Tax Services
Buenos Aires, Argentina
Email: daniel.dasso@ar.ey.com
Tel: +54 114318 1770

Javier Rovira
Executive Director – Transaction Advisory Services
Buenos Aires, Argentina
Email: javier.rovira@ar.ey.com
Tel: +54 11 4318 1690

Jorge L. Garnier
Executive Director – Law Services
Buenos Aires, Argentina
Email: jorge.garnier@ar.ey.com
Tel: +54 11 4510 2274
9
EY | Assurance | Tax | Transactions | Advisory

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