Argentina's Energy Secretariat published new regulations that accelerate the liberalization of the Term Market (MAT) and enable greater participation of existing thermal and hydroelectric power plants.
The measure, formalized through Resolution 293/2026 , poses a challenge for renewable energies, which will have to compete for contracts with facilities whose initial investments may already be amortized.
The scheme raises the contracting limits from 20% to 60% starting in April 2027, to 80% in April 2028, and eliminates the percentage restrictions in January 2029 , a year ahead of schedule. This will increase the conventional supply available to Large Consumers and could affect electricity supply contract prices.
“Although this possibility of contractualization exists, I don’t know if it will be so good for renewables, because it will be very difficult to compete with technology that has already been amortized. I even imagine that this resolution hasn’t been well received, just as Resolution SE 400/2025, which was launched last year, wasn’t well received either,” sources in the sector told Energía Estratégica.
“The problem is not competing against other technologies, but that those other technologies would already be amortized, even though they have to manage their fuel, considering that renewables generally have to be built from scratch,” they added.
The regulations argue that “maintaining significant quantitative restrictions on a portion of contractable generation reduces the depth and potential liquidity of the Forward Market.” However, increased competition could also make it more difficult to close long-term power purchase agreements (PPAs) for new renewable developments.
In the Renewable Energy Term Market (MATER) , industry-related price references are around USD 60-70 per megawatt-hour . However, the incorporation of amortized conventional power plants could lead to lower bids, although no confirmed transactions have yet been made to determine their actual impact.
For buyers, the wider range of options could translate into better contractual terms and less exposure to the spot market, where prices have reached high levels. Conversely, renewable energy developers would face greater difficulties in securing the necessary revenue to finance new installations.
While demand growth will be a determining factor, if consumption remains stable, projects will compete for a limited number of contracts. Sustained expansion, on the other hand, would require the addition of new generation capacity.
“As long as electricity demand doesn't increase, amortized projects have a significant competitive advantage. However, in a scenario of higher consumption, renewable technologies could regain appeal due to their relatively short construction times,” industry sources told this news outlet.
Furthermore, the reform modifies provisions of Resolution 400/2025 for thermal and hydroelectric power plants incorporated into the spot market before January 1, 2025. These plants will be able to contract up to 100% of their monthly production with distributors to supply the Uncovered Seasonal Demand.
In contrast, agreements with Large Major Users (GUMA), Minor Users (GUME), Individuals (GUPA) and distributors for their Large Distribution Users (GUDI) will be subject to the progressive release schedule.
Unassigned spot hydroelectric plants will also be able to sell their entire generation to distributors for that seasonal demand and their GUDI (Guaranteed Use of Energy). Contracts with Large Users of the MEM (Wholesale Electricity Market) will maintain the tiered caps until 2029.
“This opens up, ultimately, the possibilities for the futures market itself to deepen much further,” another of the sources consulted considered.
However, the opening also reveals another difference between technologies: firm capacity remuneration. Wind and solar installations without storage do not receive the same compensation as dispatchable plants capable of guaranteeing availability under certain conditions.
This situation is particularly relevant given the new industrial demands for energy and backup power. Renewable energy projects could supplement their supply with energy storage or power contracts, although these solutions represent additional costs.
Monthly revenue from Large Users and new hiring opportunities
The regulations also replace the quarterly windows with a monthly procedure for incorporation and change of category for GUMA and GUME , which will begin to be applied on December 1, 2026, with January 2027 as the first month of approval.
GUDIs that meet the requirements will be able to enter the Wholesale Electricity Market (MEM) as new agents.
Applications must be submitted to the Wholesale Electricity Market Management Company (CAMMESA), which will have 10 business days to verify the documentation . Subsequently, the Ministry of Energy will manage its publication in the Official Gazette for two business days, within three business days following the favorable report.
The initial requirement to submit a sealed copy of the notification to the distributor is also eliminated, and tacit approval will be replaced by an express resolution .
In the event of well-founded objections, the National Gas and Electricity Regulatory Entity (ENReGE) will intervene, with a period of 20 calendar days to resolve them. Changes in category will generally require a minimum tenure of one year.
Resolution 293/2026 thus creates a scenario of greater contractual competition, but with different investment conditions for different technologies. Demand growth, generation costs, and power purchase agreements will determine how much market share new wind and solar projects will retain in Argentina.
