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4.3. Definition of means of NCRE generation in the regulation

According to the LGSE [37], renewable non-conventional generation means (NCRE) are those that have any of the following characteristics:

  1. Those whose primary energy source is biomass, obtained from organic and biodegradable matter, which may be used directly as fuel or converted into other liquid, solid or gas biofuels. The biodegradable fraction of residential and non-residential solid waste is also included.
  2. Those whose primary energy source is hydraulic energy and whose maximum capacity is less than 20 MW.
  3. Those whose primary energy source is geothermal energy, understood as the energy obtained from natural heat inside the earth.
  4. Those whose primary energy source is solar energy, obtained from solar radiation.
  5. Those whose primary energy source is wind power, representing the kinetic energy of the wind.
  6. Those whose primary source of energy is the energy of the sea, representing all forms of mechanical energy produced by the movement of tides, waves and currents, as well as that obtained from the thermal gradient of the seas.
  7. Other types of generation justifiably determined by the National Energy Commission, that use renewable energy for the generation of electricity, contribute towards the diversification of sources of energy supply in the electricity systems and cause low environmental impact, in accordance with the procedures established by the regulations.

Likewise, the following concepts are defined:

  • Non-conventional renewable energy: electricity generated using renewable non-conventional generators
  • Efficient co-generation installation: a facility where electricity and heat is generated in a single high energy yield process whose maximum capacity supplied to the system is lower than 20 MW and that also complies with the requirements to be established in a future regulation. It is important to note that these efficient co-generation facilities are not classified as NCRE unless they use biomass or other renewable energy as their primary fuel.

The classification of non-conventional renewable generators presented in the previous section, groups a set of sub-classifications to which Law 19.940, Law 20.257, Laws 20.571 and 21.118, and regulation S.D. N°244 (Regulation for unconventional means of generation and small means of generation) have conferred particular rights and obligations. Figure 19 schematically shows the different generation means and their interrelations.


  1. DG-Netbilling: Renewable generation means or efficient power cogeneration of less than or equal to 300 kW, connected to facilities of a distribution concessionaire, or to facilities of a company that owns electricity distribution lines using national public use. Projects under the Net Billing Law aimed at residential, commercial and industrial customers are given the right to inject their surpluses into the distribution networks and to value them.
  2. PMGD: Generators whose capacity surplus is lower or equal to 9.000 kW, connected to the installations of a concessioned distribution company, or to the installations of a company that owns electricity distribution lines using public national assets. PMGDs are given the right to connect to distribution networks.
  3. PMG: Generating means whose surplus power available to the system is less than or equal to 9.000 kW connected to installations belonging to the National Transmission System, to a Zonal Transmission System or Dedicated Transmission System.
  4. MGNC: Generators whose source is non-conventional and whose capacity surplus injected into the system is lower than 20 MW. The MGNC category does not exclude the previously described categories. Together with NCRE projects under 20 MW, this category also includes efficient co-generation projects less than 20 MW based on fossil fuels.