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under relatively modest assumptions for economic growth, demand will increase 60% by the year 2010. Under more optimistic assumptions, demand would more than double. In addition to domestic growth,possiblythemost important recent event in the electricitysectoristhe August 1997 agreement between Argentina and Brazil to integrate the two countries’ electricity markets with guaranteed free competition among generators, the banning of all state subsidies, and the requirement that pricing be based solely on costs. Exports to Brazil could reach 5,000 MW in the medium term. Rich in natural gas, Argentina can transport gas to Brazil and Chile where the fuel can be used to generate electricity or it can turn gas into electricity at home using highly efficient combined cycle generating technologies and export the electricity produced. Argentina requested $46.5 million financing from the World Bank and $14 million from the Global Environment Fund (GEF) for a program to supply energy to rural areas using renewable resources where feasible. It will support thetransferofthe operationoftheruralpowersectorfrom the government to the private sector, and strengthen the regulatoryfunctionofprovinces. Thecommercialdelivery mechanism is based on a unique concession system where rights to a whole province are awarded in open bidding to the company that asks for the lowest subsidy. Negotiations have been postponed at the request of the GOA (Development Business, February 1999). Government / Legislation Public Law No. 24.065 — Electric Law (January 1992) The Electric Law enacted in January 1992, established a legal structure for restructuring and privatizing the electricity industry. The federal government intended for the Electric Law to reduce electricity rates and improve service. The restructuring that preceded privatization was designed to lead to competition between the soon-to-be- privatized electricity companies and was modeled after earlier restructuring by Chile and the price-cap regulation of the United Kingdom. Two further legal changes occurred during 1993. A 1993 amendment to the Foreign Investment Law more explicitly Geothermal Resources in Latin America & the Caribbean 123PDF Image | Geothermal Resources in the Caribbean and Latin America
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