Large-Scale Power Projects Must Back Their Own Consumption

The Energy Secretariat of the Ministry of Economy established, through Resolution 264/2026, the Extraordinary Demand Regime (XDEM) within the Wholesale Electricity Market (MEM). The measure aims to regulate the entry of new large-scale consumption, including those linked to data centers and mining projects.

The scheme requires these initiatives to incorporate their own generation and backup power capacity, so they do not draw on reserves designated for other users nor transfer their costs to consumer bills. In a scenario of insufficient supply, provision for households, commerce, small and medium-sized enterprises, and other industries will take priority over large demands lacking adequate backup.

The regulation expands the criteria set by Resolution 400/2025, which had established the obligation to maintain physical backup for new large demands. Now also included are projects connected through distribution companies and expansions of existing consumption.

The regime applies to new demands or expansions representing at least 0.5% of average MEM demand, a threshold currently equivalent to approximately 80 MW. Projects may select the technology and energy supplier, including generation installed at the same connection point.

As a requirement, they must cover at least 80% of their monthly consumption with new generation contracts and provide firm power equivalent to 100% of their peak demand. For data centers, the requirement rises to 115%, due to the continuity and sensitivity of their power consumption.

With the XDEM, the Government seeks to provide predictability to large-scale investments and establish that each project assumes its own supply risk, without affecting system security or generating additional costs for existing users.

Source: National Energy Secretariat.