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Argentina Overhauls Power Market, Restores Marginal Pricing Under Resolution 400/2025

The measure takes effect November 1, starting a 24‑month transition.

Overview

  • Energy and capacity prices in the wholesale market will move to marginal-cost signals, replacing long‑standing administered pricing and broad subsidies.
  • Free bilateral contracting is enabled through a new Term Market for Energy and Capacity, allowing generators, distributors, and large users to agree supply terms.
  • CAMMESA will stop centralizing fuel purchases and contract management, retaining dispatch, settlement, and last‑resort supply functions.
  • Generation is reclassified into Assigned, Spot, and New categories, with dollar‑linked Reliability Reserve payments set at US$1,000/MW‑month for existing capacity and US$9,000/MW‑month for new capacity.
  • The framework sets the BCRA A3500 wholesale dollar as the exchange‑rate reference and lifts restrictions so distributors can sign renewable supply contracts, with transitional backup mechanisms in place.