By Ana Rognoni and Clara Picasso Achaval, Lawyers
ana@estudiomalis.com.ar / cpicasso@estudiomalis.com.ar
Law 26.190 declared the use of renewable energy sources –for the generation of electric energy for the provision of public service as well as research; the technological development and manufacture of equipment for that purpose– as a matter of national interest.
In addition, rules regarding the promotion of the use of renewable energy sources intended for the production of electrical energy were approved together with the creation of the Public Trust Fund called «Fund for the Development of Renewable Energies» (FODER) —which objective is to finance clean energy projects towards the goals proposed for renewable energies for the year 2025.-
Moreover, on July 21th 2016, was issued Decree No. 882, in order to reduce the possible risks for contracts agreed to supply of electricity from renewable sources, therefore, the government and the FODER were expressly authorized to assume payment and/or guarantee obligations in order to achieve an equitable and efficient distribution of risks between them and the owner of the investment Project.
And, for the purpose indicated above and looking forward to achieving greater efficiency and effectiveness in the performance of the FODER, parties were authorized to structure the FODER, ensuring that the fiduciary assets that integrate them cannot be applied to the payment of other obligations than those envisaged in each of them, guaranteeing the separation of the patrimony to safeguard the correct performance of the FODER in fulfillment of its aims.
In this context, was issued the new decree, 471/2017 which ends up structuring the mechanism by which the FODER will have contributions that will be allocated in a «Guarantee Account» and others in a «Financing Account» of the FODER.
The new regulation stipulates, among other things, that «The resources from the National Treasury destined to the FODER determined by the Enforcement Authority as set forth in this article shall be deposited, as determined by the Enforcement Authority according to the objectives to be fulfilled, In a FODER fiduciary account for financing (article 5, subsections (a), (b) and (c) of Article 7 of Law No. 27191).”
Likewise, it establishes that if the FODER were structured as established in article 11 of Decree No. 882/16, resources from the National Treasury may be deposited or transferred to the accounts of such different trusts.
The regulation also establishes the procedure to be followed for these purposes.
This endorsement by the government not only gives a guideline that the clean and sustainable energy policy is serious and far-reaching, but also that it is guaranteed that the undertakings in the field will have a guarantee of functioning and state support in its first steps, something extremely interesting to take into account when making an investment related to a company dedicated to the production of clean energy. This consolidates a new step in the path towards the use of renewable energy.
