Argentina Accelerates Power Market Liberalization Under Milei Administration

Sweeping Reforms Reshape Argentina's Energy Landscape

Argentina is undergoing a significant transformation of its power market under the reform agenda of President Javier Milei. The nation is moving towards an open market model, emphasizing expanded private contracting and the introduction of privately financed transmission concessions. This strategic shift aims to reduce state intervention, attract substantial private investment, and address long-standing infrastructure challenges.

The reforms are part of a broader effort by the Milei administration, which took office in December 2023, to liberalize the economy, curb a significant fiscal deficit, and reposition Argentina as a competitive energy hub.

Key Legislative and Regulatory Changes

Several decrees and legislative initiatives have been instrumental in advancing these reforms:

• Resolution No. 21/2025, enacted in January 2025, deregulated the electricity market to bolster Power Purchase Agreements (PPAs) in the private sector. This measure exempts new generation projects from previous contract suspensions and allows generators to manage their own fuel, eliminating the obligation to purchase through the wholesale power market administrator Cammesa.
• Decree 450/2025, issued in July 2025, amended existing power sector laws (15,336 and 24,065). It facilitates the full opening of electricity to international trade, strengthens private sales contracts, and affirms the free choice of supplier for end-users.
• Concurrently, Decree 451/2025 established a single energy sector regulator, the Regulador Nacional de Gas y Electricidad (RNGE), by merging the previous electricity and gas regulatory bodies, ENRE and ENARGAS.
• In December 2025, Decree 921/2025 authorized national and international tenders for critical transmission projects under a concession model, designed to attract private capital for the construction, operation, and maintenance of these networks.

Furthermore, the recently approved Bases Bill includes the Régimen de Incentivo para Grandes Inversiones (RIGI), which offers 30-year regulatory stability, along with fiscal and tax incentives, for large-scale investments, including those in the energy sector.

Privatization and Investment Attraction

A central tenet of Milei's agenda is the privatization of state-owned energy assets to foster competition and efficiency. In April 2025, the government initiated the privatization of Energía Argentina S.A. (Enarsa), beginning with the divestment of its stake in the transmission company Transener S.A.. Plans were also announced in September 2025 to partially privatize Nucleoelectrica Argentina S.A. (NA-SA) by selling 44% of its shares. The formal process to privatize four major hydroelectric dams—Alicurá, El Chocón, Cerros Colorados, and Piedra del Águila—commenced in August 2025.

These measures are intended to attract foreign investment, which is seen as crucial for developing Argentina's vast natural resources, particularly in areas like the Vaca Muerta shale play.

Objectives and Future Outlook

The primary objectives of these reforms are to promote efficiency, liberalize the electricity market, rationalize subsidies, and ensure economic self-sufficiency in the energy sector. The government aims to address years of under-investment in grid infrastructure and slow growth in generation capacity that have led to frequent supply disruptions. While challenges such as transmission bottlenecks persist, the administration believes that increased private participation and a market-driven approach will lead to new generation capacity, decentralized fuel management, and improved overall energy infrastructure.