MR. DIRECTOR

Tremendous challenges face the new Minister of Energy, Juan Carlos Jobet. There are many pending regulatory challenges: a bidding process for distribution companies in preparation, with the ghost of works promised but not built; discussions on the stabilized price for small means of generation; a decarbonization process underway and the need to make the matrix more flexible; and the need to incorporate adjustments to the transmission law, due to the demands of renewables.

The icing on the cake is a distribution law, which already has a short version, under discussion in Congress, and a long version to be presented in society in the second half of the year. But the cherry on top will not be easy to deal with, because of the enormous interests at stake, which were evident in the already famous battle of the smart meters.

Fortunately, our country has solved many of its energy problems. The great abundance of renewable energy sources promises future splendor. The abundant gas from Vaca Muerta, Argentina, could offer interesting opportunities to accelerate our decarbonization in other sectors and reduce pollution in southern cities.

But I believe that the main difficulties will be in other areas. The community members hanging from electrical towers on the La Dormida slope showed us that it is in the social sphere where we will face the main difficulties in the development of our energy infrastructure. The NIMBY (Not In My Back Yard) opposition, installed years ago in the country, continues to grow. A more empowered population, which still demands such infrastructure to operate their cell phones and TV sets, but opposes its development.

Good luck Minister!

Hugh Rudnick