Independent Energy Generators (GIE AG) proposes a gradual transition in Supreme Decrees No. 88 and No. 125, currently under review by the Comptroller General of the Republic, to minimize the imminent effects that will alter the conditions under which financing for Small Distributed Generation Means (PMGD) was finalized.
The debate arises in a context where small-scale distributed generation (PMGD) projects have acquired a significant role in the national energy mix, contributing approximately 10% to the electricity system and mobilizing substantial investments in the regions. However, the proposed regulations could affect the conditions under which these projects were developed.
Technical analyses submitted to the Ministry of Energy indicate that, if the current design of the decrees remains in place, 65% of these power generation plants will face difficulties in meeting their financial obligations, according to Mauricio Utreras, executive director of Independent Power Generators (GIE AG). This scenario would imply accelerated debt repayment and the potential abandonment of energy projects in operation or under development.
The projected impact would be significant: it is estimated that approximately 690 renewable energy plants could be affected, along with roughly 20,000 direct jobs that are difficult to replace and more than US$6 billion in investments, a figure comparable to the fiscal adjustment promoted by the Government.
Given this situation, the GIE representative indicated that, while there is consensus on the need to modernize regulations in the sector, any changes must be implemented gradually. This would safeguard the stability of the system, prevent competitive distortions, and maintain investor confidence.
He also emphasized that there is still room to refine the proposal before its approval. “In particular, technical adjustments agreed upon with the PMGD industry have been proposed to the Ministry of Energy, seeking to reconcile regulatory modernization with the economic sustainability of the projects.”
The way in which these reforms are addressed will set a precedent in terms of legal certainty and investment conditions, elements considered essential for the development of energy infrastructure in the country.