THE struggle between the government of the Nationdirected by Javier Mileiand the provincial governorsin the middle of the process end of hydroelectric dam concessions privatized in the 1990s – contracts fall next week – could open the door to a disintegration of the national energy system and a dangerous one “Balkanization” of natural resources.
A proposal from the governors of Patagonia is disruptive. More to take a position in the face of future conflicts with the nation than as a viable form of regional integration, the provincial leaders presented 15 days ago in Chubut a Neuquén and Río Negro dam project to produce hydroelectric energy for the benefit of the South and sell surplus electricity to the rest of the country. This is, in essence, the purpose of the interprovincial state energy agency they want to create.
Founded in article 124 of the National Constitutionwhich recognizes the provinces’ “original dominion over the natural resources existing in their territory”, Governors want to manage more than just the energy generated by water in dams (the natural resource, on which royalties are paid), but also the infrastructure itself, of which the national state claims possession for having built it in the times of Hidronor.
The governor of Río Negro, Alberto Weretilneckgained support from the legislature to upload a “canon to water“which passes through those hydroelectric plants and so on it will make the system more expensive national energy.
He also supports this It is “unfair” to pay a return toll for energy transportation to Buenos Aires so that electricity can later return to his province.
The hydroelectric plants were granted under concession during the government of Carlos Menem and the contracts, which had a duration of 30 years, expired last year and have been provisionally extended Power. The Nation is looking for time to define its destiny: the definitive extension of the concessions, the relaunch or the change of hands to the State.
The private companies that operate the dams today are AES (Alicura), Enel (El Chocón), Aconcagua Energía (Planicie Banderita) and Central Puerto (Piedra del Águila). The installed power amounts to almost 4,200 megawatts (MW), almost 10% of the national total available to the Argentine Interconnection System (SADI).
Since the contracts were not respected after the end of Convertibility, some multinationals have pending disputes with the State, which could possibly trigger international processes before the International Center for Settlement of Investment Disputes (ICSID). One way to resolve differences would be to extend benefits.
The cost of energy
The business of these dams shifts 100 million dollars a year. The remuneration they receive is around 10-12.50 dollars per megawatt hour (MWh), so it is the type of cheaper energy from the electricity system. The system average is 76 dollars, because it also incorporates thermal energy, renewable sources, other hydroelectric and nuclear power plants.
According to what they said Clarion industry sources, if the fiscal conflict with the Nation, The provinces of Patagonia will raise their voices to try that the energy from the dams remains exclusively for Patagoniawhere there would be a sharp decline in rates.
They would sell the excess electricity to the rest of the country, something like that today it is legally impossible, not only for the functioning of the wholesale electricity market management company (Cammesa), which (according to the Government’s plans) will soon leave the intermediation of the system, but above all for the characteristics of the federal national state.
Article 126 of the Constitution places limits on the provinces, which “do not exercise the power delegated to the Nation” and “cannot celebrate partial treaties of a political nature; nor enact laws on internal or foreign trade or navigation; nor establish provincial customs” .
If successful against all odds, the effect would be a higher cost of energy supply for the rest of the countrywith the consequence of the need for new tariff increases for homes, businesses and industries or subsidies from the national State to financially support the electricity system, which the Government wants to leave in private hands.
But also the governors of Corrientes, Misiones and Entre RíosThey could, for example, require the same thing to happen with binational dams Yacyreta (shared with Paraguay) e Big leap (together with Uruguay).
Outside of the energy sector, Jujuy, Salta and Catamarca could discuss energy trading. extractionwhere is he copper and lithium They have great potential.
Returning to Patagonia, in recent days governors have pledged to defend the continuity of Yacimientos Carboniferos Río Turbio (YCRT), a project that may not be profitable in 20 years. Additionally, the firing of the Néstor Kirchner and Jorge Cepernic dams is of concern in Santa Cruz.
China broke camp after the Government kept work on hold since December 18, without renegotiating an addendum to obtain a disbursement of 520 million dollars. If the contract were to lapse, up to $30 billion in credits and even currency swaps would be at risk.
Source: Clarin
