Trelew, a city in southern Argentina, has marked a turning point in the country’s electricity market after its local distribution utility signed a landmark agreement to source all its power capacity from a private generator.
The Cooperativa Eléctrica de Trelew announced that it has contracted 100% of its capacity requirements for a 12-month period starting on 1 April 2026. The deal was executed within Argentina’s Wholesale Electricity Market (MEM), a key framework for power trading and system dispatch.
Under this agreement, the utility will cease purchasing capacity from CAMMESA—the state-run entity responsible for managing the national electricity market. This makes Trelew the first distribution company in Argentina to adopt such a model since the enactment of Law 24.065 over three decades ago.
The contract was enabled through support from Energía del Sur S.A., a generation company based in Comodoro Rivadavia. The agreement introduces a novel scheme that directly links electricity supply and demand within the national grid, bypassing traditional procurement mechanisms.
Juan Manuel Alfonsín, the government-appointed administrator of the cooperative, described the move as transformative. He noted that what once seemed unattainable has now been achieved, and represents only the first step in a broader strategy to modernise the utility’s operations.
“This milestone positions Trelew and the province of Chubut at the forefront of a new energy framework, marking a before and after in the functioning of Argentina’s electricity market,” the organisation stated.
Alfonsín also emphasised the cooperative’s ongoing commitment to public service provision and its readiness to support future investment and urban growth. He highlighted the organisation’s ambition to act as a reliable and competitive strategic partner for new development projects.
Key aspects of the agreement
- Contract duration: 12 months (from April 2026)
- Coverage: 100% of the utility’s capacity demand
- Supplier: Private generator (Energía del Sur S.A.)
- Previous model: Centralised procurement via CAMMESA
- Market impact: Opens the door to bilateral contracting and greater flexibility in power purchase agreements (PPAs)
This development strengthens the local energy system while setting a national precedent. It could pave the way for more flexible and decentralised contracting schemes in Argentina, aligning with broader global trends in electricity markets such as bilateral power purchase agreements, increased competition, and more efficient energy procurement strategies.
