Argentina postpones decision on state control of dams, leaving it to next government

The Argentine Government has extended the concessions for five hydroelectric dams in Comahue, which are currently operated by private companies.

The decision, announced in the Official Gazette, appoints Enarsa as the overseer and invites the provinces of Neuquén and Río Negro to contribute representatives for a collaborative transition period.

Initially, four out of the five dam concessions were set to expire on August 11.

However, private control will now continue until December 9, 2023, leaving the decision on the future of these assets to the next government.

This resolution follows controversy that arose from the Energy Secretariat’s decision on June 8 not to extend the concessions and to transfer control of the dams to Enarsa.

The move faced opposition from the companies involved, as well as the provinces, which sought a greater role in determining the future of these operations.

The five dams affected by this decision are the Alícura Dam (Río Negro – Neuquén), El Chocón Dam (Neuquén), Arroyito Dam (Neuquén), Cerros Colorados Dam (Neuquén), and Piedra del Águila Dam.

The resolution, known as Resolution 574, states that the transfer of ownership and possession of the concessionaires’ equipment to the National Government will occur at the end of the concession terms as stipulated in the contracts.

The objective is to ensure the continuity of service, protect public interests in energy generation, and ensure safety within the basin.

Several measures are outlined in the resolution, including allowing concessionaires to continue operating the hydroelectric complexes and fulfilling their obligations for a specified period to ensure safety.

Energía Argentina Sociedad Anónima (enarsa) is designated as the overseer for all the power plants mentioned, and representatives from the provinces of Río Negro and Neuquén, along with a representative from the ministry of economy, are invited to cooperate with enarsa during the transition period.