Regulation to Promote Generation with Non-Conventional Renewable Energy (ERNC) Greater than 10 MW and Less than or Equal to 100 MW
On October 16, 2025, the Board of Directors of the Agency for the Regulation and Control of Electricity (ARCONEL) approved Regulation No. ARCONEL 005/25, titled “Regulation to Promote Generation with Non-Conventional Renewable Energy (ERNC) Greater than 10 MW and Less than or Equal to 100 MW”. This regulation establishes the technical and procedural framework for the development of generation projects using non-conventional renewable energy sources with a capacity greater than 10 MW and less than or equal to 100 MW.
Below, we summarize the main provisions contained in this regulation:
- It establishes the technical, commercial, and procedural requirements necessary for companies to develop, construct, operate, and maintain non-conventional renewable energy generation plants (hereinafter, CGRNC) with nominal capacities between 10 MW and 100 MW.
- It applies to ERNC projects (solar photovoltaic, wind, geothermal, biomass, biogas, or hydroelectric) that are not part of the Electricity Master Plan (PME).
- The granting of the enabling title will be carried out directly, without the need for a Public Selection Process (hereinafter, PPS). Priority for obtaining the Enabling Title will be given to projects incorporating energy storage systems and interconnection networks.
- The regulation excludes from its scope self-generation projects, distributed generation, and plants located in the electrical system of the Galápagos Province.
- The Ministry of the Environment will define the maximum national capacity that may be developed under this regulation.
- Preferential prices are established, calculated based on the Total Levelized Cost of Energy (hereinafter, CNE), which includes the Levelized Cost of Energy (LCOE) and the Levelized Cost of Transmission (LCOT), and accounts for an interconnection line of up to 25 km.
- For solar and wind technologies, projects must include battery storage systems, for which the prices include the associated cost of the storage system, equivalent to 10% of the CGRNC’s nominal capacity, with 4 hours of charge and discharge at the connection point.
- Preferential periods are established, differentiated by energy source, during which no price adjustments will be made: (i) Solar, wind, and geothermal: 25 years; (ii) Hydroelectric: 30 years; and (iii) Biomass and biogas: 20 years.
- Regarding preferential prices, the following have been established, expressed in USD cents/kWh:
| Biomass | 10,525 |
| Wind | 7,174 |
| Photovoltaic | 8,036 |
| Hydroelectric (Pacific Basin) | 6,761 |
| Hydroelectric (Amazon Basin) | 6,350 |
| Biogas | 9,250 |
| Geothermal | 14,662 |
- Enabled Generation Companies (hereinafter, EGH) assume all risks and costs related to the design, construction, operation, and decommissioning of the project.
- The reversion of assets used for energy generation to the State is provided for upon the expiration of the Enabling Title’s term, with the State reserving the right to decline such assets if they are not deemed to be in the national interest.
- Projects must connect to the National Interconnected System (SNI) through the National Transmission System (SNT) in accordance with the provisions of Regulation ARCONEL-001/24.
- Projects must obtain the corresponding environmental permits and authorizations in accordance with the Organic Environmental Code and its regulations.
- Two stages are established for managing connection feasibility: (i) Preliminary Connection Feasibility, as a prerequisite for signing the Enabling Title; and (ii) Definitive Connection Feasibility, obtained after signing the Enabling Title and prior to the start of project construction.
- It is established that related companies may not accumulate more than 100 MW at a single connection point. The existence of a relationship will be determined based on the criteria for related entities applicable under current tax regulations.
- Upon obtaining Preliminary Feasibility, companies must request the Qualification Certificate from the Ministry of the Environment, following the procedure established in the Regulations to the Organic Law on the Public Electricity Service.
- Once the Enabling Title is signed, the company must request Definitive Connection Feasibility, which will determine the technical conditions for connection to the grid.
- CELEC EP must implement, within six months from the entry into force of the Regulation, a virtual platform for processing connection feasibility requests. Until this system is operational, applications will be received through Quipux or in physical format.
- The plants will be dispatched by CENACE in accordance with Regulation ARCONEL-001/25, under which non-conventional renewable energy generation has a variable cost of zero.
- CENACE may require the delivery of up to 25% of the stored energy per hour for system backup, as well as define the charge and discharge periods.
- Active power, reactive power, and state-of-charge data must be transmitted in real-time to CENACE and CELEC EP.
- Within a maximum period of six months from the entry into force of the Regulation, ARCONEL will issue regulations governing Battery Energy Storage Systems (BESS) and defining the complementary services they may provide, detailing their technical and commercial conditions.
- Capacity increases may be authorized, with the additional energy remunerated according to the total levelized cost mentioned above, without modifying the preferential period or adjusting the price during its term.
- CGRNCs that already hold an Enabling Title prior to the issuance of this Regulation may increase their generation capacity under the new regulatory framework. To do so, they must incorporate an independent commercial metering system for the expanded capacity. Such expansions will not extend the term of the initially granted concession.
If you have questions about the scope of this Regulation or wish to explore the opportunities it offers, do not hesitate to contact us! At LASPINA LEGAL, we are committed to guiding you with excellence and professionalism to make the most of these new possibilities.