The regulatory decision follows a June 3 public hearing where ten parties filed objections, including San Juan’s provincial electricity regulator EPRE, La Rioja province’s energy secretariat, mining companies Barrick, McEwen Copper (Andes Corporación Minera’s Los Azules project), Gualcamayo, Casposo, Golden Mining’s Hualilán project, and three San Juan municipalities. Competitors particularly challenged the capacity allocation, with Los Azules arguing that Vicuña’s priority rights on the Nueva San Juan-Rodeo line would severely constrain access for other mining developments.
ENReGE dismissed all challenges on jurisdictional and technical grounds. The regulator ruled that 500 kV transmission lines fall under exclusive federal authority regardless of provincial financial contributions to construction. The agency emphasized that priority rights apply only to new capacity financed entirely by Vicuña, not existing infrastructure. Barrick’s claim to 250 MW capacity based on its 2006 contribution of $55 million to the Nueva San Juan-Rodeo segment was rejected because federal transmission systems supersede historical provincial arrangements.
The resolution states existing infrastructure remains accessible to all users and any company can construct its own expansion to obtain similar priority. ENReGE rejected Los Azules’ technical arguments by noting the project is neither registered as a wholesale electricity market agent nor included in Transener’s demand forecasting reference guide. La Rioja’s request that Vicuña fund future interconnection to that province was dismissed as beyond project scope.
Vicuña will finance the entire capital expenditure while Transener handles operation and maintenance. The company emphasized the 500 kV infrastructure will eliminate structural transmission constraints in northwestern San Juan and create permanent grid assets. Residual capacity beyond Josemaría’s requirements may become available to other users under existing regulations. The Rodeo-Chaparro corridor aligns with national energy planning for eventual Rodeo-Chaparro-La Rioja Sur interconnection identified as priority by the Energy Secretariat.
Following the electrical approval, Economy Ministry Resolution 1154/2026 formalized Vicuña’s admission to the RIGI regime for investments totaling $9.737 billion, including $9.024 billion in qualifying assets to be executed in two phases through December 2031. The project targets copper, gold, and silver extraction from Josemaría and Filo del Sol deposits, classified as a Strategic Long-Term Export Project. Government projections estimate annual exports exceeding $2.6 billion and creation of 31,700 direct and indirect jobs. RIGI benefits include tax, customs, and foreign exchange incentives with free availability of export proceeds. Vicuña must invest at least 20% of the minimum commitment by December 31, 2028.
Despite regulatory approval, San Juan’s EPRE threatened legal action on July 3 if conditions were not met, warning it would seek judicial intervention to halt construction. The company continues negotiations with EPRE regarding recognition of investments in existing infrastructure.
This article was curated and published as part of our South American energy market coverage.
