National Programme for Distributed Generation (Law 27424)

The law 27424 establishes a national framework for promoting distributed renewable energy generation connected to the grid. As electricity distribution services are regulated at the provincial level, individual provinces have to join the framework or develop their own. As of March 2020, 13 provinces joined the national framework, 8 developed their own and 3 have yet to decide. The Law establishes conditions and measures for renewable power generation by users of the distribution grid, for self consumption and exports to the of energy surpluses, as well as the obligation of the utilities to facilitate such feed-in. A system of Tax Credits Certificates for users-generators was created to promote the installation of distributed generation systems. The Law establishes a trust fund to finance DG projects (FODIS), with the Banco de Inversión y Comercio Exterior (BICE) as the trustee. The FODIS has however not been implemented as of March 2020, and high up-front cost remain a key barrier for distributed generation in Argentina.