On August 6th, 2025, the National Energy Commission (“CNE”, per its acronym in Spanish) published a resolution setting forth the requirements for obtaining generation permits for interconnected self-consumption for power plants with a capacity between 0.7 and 20 MW (the “Resolution”).
Under the new Power Sector Law, self-consumption is one of the three schemes under which power generation is allowed and refers to the production of a power plant with a capacity equal to or greater than 0.7 MW, intended to satisfy the on-site needs of the holder of a valid generation permit.
Power generation in a self-consumption modality requires obtaining a generation permit from the CNE, and for interconnected self-consumption in power plants with a capacity between 0.7 and 20 MW, the law provides that the CNE may establish a simplified procedure, which is the subject matter of the Resolution.
Among the requirements to apply for this simplified procedure, which are detailed in the Resolution (available here), the following are noteworthy:
a) The applicant is required to explain whether it has its own or contracted backup, in the case of intermittent generators injecting energy into the Grid. Although this requirement has not been detailed, it should be understood that, for plants using renewable sources, a certain installed capacity in battery energy storage systems will be required.
b) The applicant is required to provide the list end-users of the associated private network that are associated with the power plant and may receive and utilize the energy. This point remains subject to further detail in the Regulations of the Power Sector Law and other administrative provisions to be issued by the CNE; however, it allows to anticipate that the self-consumption scheme may permit supplying energy needs of diverse users.
c) Applicants are required to submit the Social Impact Assessment of the power plant before the Ministry of Energy;
d) The applicant is required to have obtained from the National Center for Energy Control the grid impact assessment or the fast-track impact study, as applicable, for the interconnection of the power plant; and
e) The applicant is required to submit a diagram of its shareholding and corporate structure, including the percentage of participation in the share capital and the identification of the individuals or legal entities exercising direct or indirect control over the company.
The Resolution will become effective once the Regulations of the Power Sector Law and the Energy Planning and Transition Law come into effect. Nevertheless, it is advisable to analyze the requirements set forth herein and assess whether this new self-consumption generation scheme enables the development of new projects in the power sector.
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