Reforms in the Wholesale Electricity Market in Argentina

The Argentine government is implementing reforms in the Wholesale Electricity Market, promoting free contracting and decentralization in fuel management.


Reforms in the Wholesale Electricity Market in Argentina

The National Government commits to adhere to the existing generation and fuel contracts until their completion, as part of a reform process in the Wholesale Electricity Market (MEM). It is expected that generators will take responsibility for managing their own fuels, which could lead to cost reductions and greater agility in supply.

Resolution 21/2025 from the Secretary of Energy of the Ministry of Economy, published in the Official Bulletin, establishes that restrictions will be removed and free contracting will be promoted in the market, decentralizing fuel management. Among the main axes of this reform are the decentralization of fuel management, giving thermal generators the responsibility to manage their own resources, and promoting free bilateral contracts in the market.

The aim is to encourage the active participation of large users and distributors to facilitate the development of new generation and energy transport infrastructures, and if new infrastructures are required, competitive bidding will be conducted. The goal of these measures is to maintain stability in the market and ensure energy supply in the short term while promoting long-term competition.