As much as I hate to defend what he said, there could be an element of truth to it - particularly if the Argentinian electricity market works in a similar way to the Australian market. (I don't know if this is the case or not)
I do know how the Aus market works though and a high level simplified version goes something like:
Generators produce electricity Electricity goes into a 'pool' Price of electricity in the pool depends on current demand Retailers buy from the pool to service their customers Customers buy from the retailer
In essence, there is no direct contact between generator and consumer in the usual way of working
However, there are such things as Power Purchase Agreements (PPA) and I would think that the deal is some form of this kind of agreement since it does state there would be a direct connection. Everything else that has been mentioned regarding losses is completely true - the losses will be negligible for 5km transmission but there will likely be some losses at the distribution side (transformation mostly)
AGY Price at posting:
16.5¢ Sentiment: Buy Disclosure: Held
