Central Puerto S.A. (CEPU): Business Model Canvas [Dec-2025 Updated]

You're digging into Central Puerto S.A. (CEPU) to see how Argentina's largest private power generator actually makes money when the market is this volatile. Honestly, it's a fascinating model: they run 16 plants totaling nearly 6,938 MW, but the real trick is their revenue mix, which saw 53% coming from the spot market in Q3 2025, balanced by those crucial dollar-denominated contracts that de-risk the whole operation. They are actively modernizing the grid by pushing 205 MW of Battery Energy Storage Systems (BESS) onto the system, which is key for stability, all while maintaining a strong balance sheet with a low net leverage of 0.46x as of FY 2024. Want to see the full blueprint-from their main buyer, CAMMESA, to their high variable fuel costs-that keeps this massive operation running? Keep reading below for the complete Business Model Canvas.

Central Puerto S.A. (CEPU) - Canvas Business Model: Key Partnerships

You're looking at the critical external relationships Central Puerto S.A. (CEPU) relies on to execute its strategy, especially as it pivots toward storage and renewables. These aren't just vendors; they are financial backers and essential market counterparts. Honestly, the nature of these partnerships shows where the near-term capital and revenue certainty lie for CEPU.

The relationship with the International Finance Corporation (IFC) is a major enabler for the capital-intensive energy transition. Central Puerto S.A. signed a mandate letter with the IFC for potential financing of up to $300 million. This funding is earmarked to support the roll-out of renewables and battery energy storage systems (BESS). This financing is specifically intended to advance CEPU's investment plan, which includes its first BESS project secured under the AlmaGBA tender. To give you context on the IFC's scale, in fiscal year 2025, the IFC committed a record $71.7 billion to private companies in developing countries.

As the primary off-taker in the regulated market, CAMMESA (Wholesale Electricity Market Administrator) remains fundamental for revenue stability, though the regulatory environment is shifting. Central Puerto S.A. covers approximately 17% of Argentina's energy consumption. In the first quarter of 2025 (1Q25), CEPU's power generation was 5,731 GWh, up 4% from 1Q24's 5,520 GWh. The Secretariat of Energy is working toward launching a new regulatory framework by the beginning of November 2025, which will impact how CAMMESA operates.

The potential for massive new demand is highlighted by the Memorandum of Understanding (MoU) signed with parties related to OpenAI. Central Puerto S.A. signed this MoU to potentially supply renewable energy to a proposed $25 billion data center project, dubbed Stargate Argentina, led by Sur Energy. This signals a huge future energy requirement; CEPU's total annual generation volume surpassed 20,000 GWh per year, reaching 20,057 GWh in the first nine months of 2025. OpenAI has stated it welcomes the potential opportunity to become an offtaker.

For its thermal generation base, which still represents about 71% of its installed capacity of 6,938 MW, securing natural gas suppliers is key. In the fourth quarter of 2024 (4Q24), the growth in thermal generation, which rose 25% year-over-year to 3,767 GWh, led to a 9% rise in natural gas consumption for CEPU. A significant regulatory change effective March 1, 2025, allows thermal generators like CEPU to manage their own fuel procurement.

Partnerships with equipment manufacturers are tied directly to project execution, especially for the combined-cycle upgrades and BESS deployment. Central Puerto is finalizing the conversion of the Brigadier López thermoelectric plant to combined-cycle, which will add 140MW of installed capacity. The total investment for this Brigadier López project is approximately $185 million, with commercial operation targeted for the fourth quarter of 2025. Looking ahead, Central Puerto plans to develop 205 MW of BESS in 2026.

Here is a quick look at the scale of some of these key projects and operational metrics:

These partnerships are structured to de-risk the transition. For instance, the IFC visit included assessing environmental, social, and governance (ESG) practices. Also, Central Puerto recently secured a five-year agreement to supply renewable electricity to Axion Energy's refinery, covering 25% of its consumption, equivalent to about 60 GWh per year. This deal involves issuing International Renewable Energy Certificates (I-REC).

You should keep an eye on the following operational and financial anchors that underpin these partnerships:

• Adjusted EBITDA (Last Twelve Months): $309.9 million.
• Net Leverage Ratio: 0.46X.
• Total Installed Capacity: 6,938 MW.
• FY 2024 Sales: $671.3 million.
• Capital Expenditures (1H 2025): $102.4 million.

Finance: draft 13-week cash view by Friday.

Central Puerto S.A. (CEPU) - Canvas Business Model: Key Activities

You're looking at the core engine of Central Puerto S.A. (CEPU), the activities that actually convert assets into revenue and power the grid. It's all about keeping those turbines spinning and strategically adding capacity for the future.

The primary activity is the operation of a massive, diversified generation fleet. As of late 2025, Central Puerto S.A. is running 16 power generation plants spread across Argentina. This operational footprint allows the company to manage a total installed capacity of approximately 6,938 MW. To give you a recent snapshot, capacity stood at 6,703 MW as of the second quarter of 2025.

A key activity involves executing significant Capital Expenditure (CapEx) projects to enhance efficiency and output. The conversion of the Brigadier López Power Plant to combined cycle is a prime example. This project, with an associated investment of US$180 million, adds 140 MW to the plant's existing 292 MW, bringing its total capacity to 432 MW. You can expect this development to be completed by December 2025.

Central Puerto S.A. is also actively building out its future-facing assets, specifically in energy storage. They secured contracts for 205 MW of Battery Energy Storage Systems (BESS) capacity through the AlmaGBA tender. This involves two strategic projects: Nuevo Puerto (150 MW for 5 hours) and Costanera (55 MW for 5 hours), with an estimated combined CapEx of US$130 million. Commissioning for these storage assets is scheduled for 2026.

The commercial activity centers on selling the generated power. Central Puerto S.A. trades energy in the spot market while managing a portfolio of long-term contracts. Recent regulatory changes, like Resolution 400/2025, are crucial here, as they introduce a dollar-denominated remuneration system for the spot market and allow thermal generators to sell up to 20% of output to large industrial users. The results of these operational and commercial activities are visible in the recent financials; for the third quarter of 2025, total revenue reached US$233.9 million, and Adjusted EBITDA hit US$101.1 million.

Here's a quick look at how some of the key generation assets and projects stack up:

The trading and contracting structure is evolving to capture more value from market liberalization. You need to track the impact of the new rules:

• Spot market remuneration is now dollar-denominated.
• Up to 20% of output can be sold to large industrial users via corporate PPAs.
• Up to 100% of output can be sold to distributors or on the spot market.
• Q3 2025 Adjusted EBITDA was US$101.1 million.

The company is definitely focused on maximizing dispatch and securing contracts for new capacity.

Central Puerto S.A. (CEPU) - Canvas Business Model: Key Resources

You're looking at the core assets that power Central Puerto S.A. (CEPU)'s operations right now, heading into the end of 2025. These aren't just assets; they are the foundation for their revenue generation and de-risking strategy in Argentina's evolving energy landscape.

The company's generation capacity is notably diversified, which is a key strength. As of the latest data reflecting the end of 2025 projections, the installed capacity mix looks like this:

This mix means Central Puerto S.A. can respond to different market conditions, though the Q3 2025 results showed hydro volumes decreased due to lower hydrology at Piedra del Águila. Still, the overall installed capacity stands at 6,938 MW across 16 power generation plants.

Central Puerto S.A. is actively securing strategic real estate and grid access for future growth, specifically in energy storage. They won bids in the AlmaGBA tender for two Battery Energy Storage System (BESS) projects:

• Nuevo Puerto: Capable of injecting 150 MW of power for 5 hours.
• Costanera: Capable of injecting 55 MW of power for 5 hours.

The total combined capacity from these two BESS projects is 205 MW, with an estimated total investment of USD 130 million. Commercial operation for these is expected in 2H 2027.

Revenue stability comes from contracts, and Central Puerto S.A. has locked in a significant portion of its sales. In the third quarter of 2025, the revenue mix showed 47% contracted sales. Furthermore, a critical de-risking factor is that 63% of total revenues were denominated in U.S. dollars during that same quarter. The new BESS contracts are notably long-term, secured with 15-year contracts.

Financially, the balance sheet remains a core asset. While the low net leverage ratio of 0.46x was reported for Fiscal Year 2024, reflecting a Net Debt of USD 132.5MM against Adjusted EBITDA of USD 288MM for that period, the company maintained a strong cash position as of September 30th, 2025, with net debt at USD 159.9 MM. This low leverage allows them to finance new projects, like the BESS developments, with less reliance on external debt markets.

Key operational concessions are vital, though subject to regulatory processes. The concession for the 1.4 GW Piedra del Águila hydroelectric plant, operated by Central Puerto S.A., was extended until the end of 2025. This asset is part of a larger auction process for four major hydro units, where Central Puerto S.A. submitted a qualified bid for Piedra del Águila, with economic bids evaluated on November 7, 2025. The company also recently added to its renewables base by acquiring the 80 MW Cafayate solar farm in August 2025.

Here's a quick look at some of the key financial and operational metrics supporting these resources as of late 2025:

Finance: draft the 13-week cash view incorporating the Q3 2025 operational data by Friday.

Central Puerto S.A. (CEPU) - Canvas Business Model: Value Propositions

You're looking at the core value Central Puerto S.A. (CEPU) delivers to its customers and the market as of late 2025. It's about providing the essential backbone of Argentina's power supply while aggressively de-risking its revenue profile.

Reliable, large-scale power is the foundation. Central Puerto S.A. is a critical supplier, covering approximately 17% of the country's total energy consumption. As of the third quarter of 2025, the company's operational output was significant, having generated 20,057 GWh in the first nine months alone. This scale is backed by an installed capacity of around 6.938 GW across its various plants.

The shift toward financial resilience is clear in the revenue structure. You'll see that 63% of total revenues in the third quarter of 2025 were denominated in U.S. dollars. This dollar-denomination, a direct result of recent market deregulation, significantly reduces the currency and inflation risk inherent in operating in Argentina.

To enhance system stability, Central Puerto S.A. is leading the charge in grid modernization. They successfully secured two utility-scale Battery Energy Storage System (BESS) projects through the AlmaGBA tender, totaling 205 MW of capacity. This storage capacity is split into a 150 MW project and a 55 MW project, both designed to support peak shaving needs in the Buenos Aires area.

Energy diversification is another key proposition, moving beyond just thermal generation. The installed capacity mix, while still heavily weighted toward thermal sources, shows a clear strategic pivot. Here's the quick math on their generation potential:

This diversification is being actively executed; for instance, Central Puerto S.A. expanded its solar footprint to 185 MW following the acquisition of the 80 MW Cafayate Solar Park. Furthermore, they are finalizing a major thermal upgrade, adding 140 MW via combined cycle at the Brigadier López Power Plant, expected online by the end of December 2025.

Finally, the thermal generation segment is protected by contractual mechanisms. The fuel cost pass-through mechanism is explicitly cited as a driver for strong operational performance in Q3 2025, allowing margins to be maintained despite fluctuating fuel costs. This operational flexibility is crucial for navigating the evolving regulatory landscape, which now allows generators to trade capacity and energy in the new Thermal Term Market.

The value proposition is built on these concrete operational and financial pillars:

• Supplying 17% of Argentina's energy market.
• Securing 63% of revenues in U.S. dollars as of Q3 2025.
• Awarded 205 MW in utility-scale BESS projects.
• Adding 140 MW of thermal capacity by end of 2025.
• Thermal generation represents about 71% of capacity, with renewables at 18%.

Finance: draft 13-week cash view by Friday.

Central Puerto S.A. (CEPU) - Canvas Business Model: Customer Relationships

You're looking at how Central Puerto S.A. manages its key customer relationships as of late 2025, which is a mix of long-term regulated contracts and new market-driven agreements, especially with the recent power market reform.

Long-term, contractual relationships with state entities (CAMMESA)

Central Puerto S.A. maintains foundational relationships with the state-run wholesale power market administrator, CAMMESA. This involves selling energy under existing contracts, such as the RenovAr 1.5 contract for the 80 MW Cafayate Solar Park. The regulatory environment is shifting, with the Secretariat of Energy instructing CAMMESA to issue a new framework by the beginning of November 2025, which will alter dynamics. Still, the company has faced payment challenges; for instance, subscribing to an agreement with CAMMESA resulted in a consolidated loss for Central Puerto S.A. of approximately Ps. 24,783 million at the time of the annual report filing. Furthermore, CAMMESA acts as the guarantor for the new Battery Energy Storage System (BESS) projects, which significantly reduces repayment risk for those specific contracts.

• Cafayate Solar Park sells energy under RenovAr 1.5 contract with CAMMESA.
• New regulatory framework expected to launch by early November 2025.
• CAMMESA is guarantor for awarded BESS capacity.

Direct sales and negotiation with large industrial users

The power market reform opens a significant channel for direct customer engagement. New rules allow thermoelectric and hydroelectric plants to sign corporate Power Purchase Agreements (PPAs), letting Central Puerto S.A. sell up to 20% of output directly to Large Industrial Users (GUDIs) for plants with a Commercial Operation Date (COD) on or after January 1st, 2025. The company is actively evaluating these opportunities. The base impact of deregulation, even without securing the full 20% direct sales, is projected to increase EBITDA by 20-25%. For context on the demand side, in the first quarter of 2025 (1Q25), the Major Demand segment, which includes industrial/commercial users, accounted for 24.18% of the total energy demand.

Here's a quick look at the demand breakdown from 1Q25:

Institutional engagement with distribution companies (Edenor, Edesur) for BESS projects

Central Puerto S.A. secured its role with major distribution companies through the AlmaGBA auction, which targets peak shaving in the Buenos Aires Metropolitan Area (AMBA). These are firm, capacity-based relationships tied to specific infrastructure deployment. The company won two projects totaling 205 MW of installed BESS capacity, with commercial operation expected in the second half of 2027. This engagement involves significant capital expenditure, estimated between US$130 million and US$140 million.

The BESS customer commitments are:

Investor relations for NYSE-listed ADRs (CEPU)

The relationship with the financial community is managed through the listing on the New York Stock Exchange (NYSE) under the ticker CEPU, alongside its listing on the Buenos Aires Stock Exchange (BYMA). The company emphasizes its strong operational performance and solid financial position to support consistent returns for investors. For the full year 2024, Central Puerto S.A. reported US$671.3MM in Sales and an Adjusted EBITDA of US$288MM. The company's ADR trading volume on the NYSE for the entirety of 2024 was 82,826,158 ADRs, which represented 828,261,580 common shares.

Here are key financial metrics as of the latest reported snapshot, September 30, 2025:

• Outstanding financial debt: US$452.1 million.
• Cash & cash equivalent and financial current assets: US$292.1 million.
• Net Debt: US$132.5 million.
• Net Leverage Ratio: 0.46X.
• Total installed capacity: 6,938 MW across 16 power generation plants.

Finance: draft 13-week cash view by Friday.

Central Puerto S.A. (CEPU) - Canvas Business Model: Channels

You're looking at how Central Puerto S.A. gets its generated power to the market as of late 2025. It's a mix of direct grid connection and specific contractual sales, all governed by recent regulatory shifts.

High-voltage transmission lines connecting power plants to the SADI (Argentine Interconnected System)

Central Puerto S.A. contributes significantly to the national grid infrastructure. As of the third quarter of 2025, the company held a 14.1% share of the Argentine Interconnection System (SADI) generation park. The total installed capacity in Argentina reached approximately 43,887 MW by September 2025. Central Puerto's total installed generation capacity stood at 6,703 MW as of September 2025. The Brigadier López Power Plant, for instance, injects power into the interconnected system through a 132 kV connection following its combined cycle upgrade to 432 MW total capacity.

Direct power purchase agreements (PPAs) for large users

Recent regulatory changes under Resolution SE 400/2025, effective in November 2025, opened up new direct sales channels for thermal generators. Specifically, this reform allows for sales of up to 20% of output to large industrial users via term market contracts, which function as corporate PPAs. Central Puerto S.A. is actively evaluating potential opportunities within this segment.

Wholesale Electricity Market (WEM) spot sales via CAMMESA

A substantial portion of Central Puerto S.A.'s sales flows through the Wholesale Electricity Market (WEM), managed by CAMMESA. The company's Q3 2025 revenue mix showed that 53% of its revenue came from the spot market, with the remaining 47% from contracted sales. Total energy sales revenue for the third quarter of 2025 was US$215.3 million, which represented 92.1% of the total revenue of US$233.9 million for that period. A key development is that spot-market revenue is now dollar-denominated, which helps reduce inflation and currency risks for this channel.

Here's a quick look at the Q3 2025 revenue breakdown by sales type:

Note: The spot market revenue estimate is derived by applying the 53% mix to the total energy sales revenue of US$215.3 million for Q3 2025.

Renewable energy contracts (RenovAr) for solar and wind farms

Central Puerto S.A. utilizes specific contracts, like those under the RenovAr Program, to channel renewable energy generation. The 80 MW Cafayate Solar Park, acquired in August 2025 for approximately US$50 million, sells its energy under the RenovAr 1.5 contract with CAMMESA. This asset generates 220 GWh annually. Renewable generation revenues saw a 21% rise in generation volumes quarter-on-quarter during Q3 2025, supported by this and other renewable assets. Furthermore, the company won two battery storage projects totaling 205 MW capacity under the AlmaGBA tender, with commissioning scheduled for 2027.

The company's renewable portfolio channels include:

• Contracted sales under the RenovAr Program.
• The 80 MW Cafayate Solar Park on a RenovAr 1.5 contract.
• New capacity from 205 MW of Battery Energy Storage System (BESS) projects awarded in the AlmaGBA tender.

Central Puerto S.A. (CEPU) - Canvas Business Model: Customer Segments

Central Puerto S.A. serves distinct customer segments within the Argentine electricity market, reflecting the evolving regulatory landscape as of late 2025.

CAMMESA (Wholesale Electricity Market Administrator) as the main buyer

CAMMESA remains a central counterparty, managing the Wholesale Electricity Market (MEM). Central Puerto S.A. is noted as the largest private sector power generation company in Argentina, according to CAMMESA data. The company's generation volume for the first nine months of 2025 reached exactly 20,057 GWh. In Q3 2025, the revenue mix showed 53% from the spot market and 47% from contracted sales. Furthermore, for certain thermal power plants not committed in MEM supply contracts, an 'additional, complementary and exceptional' remuneration scheme was established, with a contingency plan offering additional remuneration of USD 2,000-2,500/MW for critical power units.

Large industrial and commercial users (LU)

The segment of Large Users (LU) is increasingly important due to market liberalization efforts. Central Puerto S.A. has historically pursued sales directly to private clients under the MATER mechanism, with past targets including 137 MW sales to large users. Market analysts suggest that if Central Puerto S.A. manages to sell 20% of its output to large users, the resulting revenue could increase EBITDA by 20-25%. In the first quarter of 2025, energy demand from 'major demand' users saw a slight increase of 0.8% year-over-year.

Electricity distribution companies (e.g., Edenor, Edesur)

Distribution companies like Edenor and Edesur are key customers, particularly through specific regulatory programs. Central Puerto S.A. secured awards for two battery energy storage system (BESS) projects totaling 205 MW under the AlmaGBA program, which involves contracts with the distributors EDENOR and EDESUR. The company's total installed capacity across its 16 plants is 6,938 MW.

Institutional investors and shareholders (NYSE: CEPU)

The financial performance directly impacts institutional investors and shareholders trading on the NYSE under the ticker CEPU. As of late 2025 reporting periods, the Current Market Cap stood at $2.47B. For the nine months ended September 30, 2025, Equity attributable to shareholders grew to ARS 2,371,016,808 thousand. In Q3 2025, 63% of total revenues were denominated in dollars, which helps mitigate currency risk for these stakeholders.

Here's a quick look at the scale and revenue exposure for late 2025:

The customer base is segmented by sale type and regulatory framework, as shown below:

• CAMMESA: Primary off-taker for regulated energy sales.
• Large Users (LU): Target for direct sales, with potential EBITDA uplift of 20-25%.
• Distribution Companies: Counterparties for capacity contracts like AlmaGBA BESS projects (205 MW total awarded).
• Shareholders: Beneficiaries of dollar-denominated revenues (63% in Q3 2025).

Central Puerto S.A. (CEPU) - Canvas Business Model: Cost Structure

You're looking at the core expenses Central Puerto S.A. has to manage to keep the lights on across Argentina. It's a mix of massive, lumpy investments and the constant burn rate of fuel.

The operational cost structure is heavily influenced by the thermal generation fleet, which relies on natural gas and fuel. Following Resolution 400/2025, Central Puerto S.A. generators are now responsible for fuel management, though CAMMESA provides reference maximum fuel costs. The new spot remuneration mechanism is designed to establish a margin on top of the Variable Production Costs (CVP), which directly ties revenue recovery to these underlying fuel expenses. This means the cost of natural gas and fuel remains a significant, high-volume variable cost component.

Capital expenditures are substantial, driven by both modernization and strategic growth into new technologies like battery storage. For the third quarter of 2025 alone, capital expenditures totaled $76.1 million. This CapEx figure was directly impacted by the acquisition of new assets, such as the 80 MW Cafayate solar farm, which cost $48.5 million.

Central Puerto S.A. manages a complex operational footprint, which translates into ongoing maintenance and operational costs across its facilities. As of late 2025, the company operates 14 power plants across six provinces.

The financing structure also contributes significantly to the overall cost base, especially given the company's investment pace. For the nine months ended September 30, 2025, finance expenses on loans and borrowings reached ARS 181,830,573 thousand.

Here's a quick look at some of the key financial outflows and investments reported for the nine-month period ending September 30, 2025, and Q3 2025:

The company is also committed to future costs related to its expansion into energy storage. Central Puerto S.A. secured contracts for two Battery Energy Storage System (BESS) projects totaling 205 MW, with an estimated total CapEx between US$130 million and US$140 million, expected to come online by mid-2027.

The cost structure is further detailed by the operational scale:

• Number of Power Plants Operated: 14
• Total Installed Capacity (as of Sept 2025): Approximately 6.78GW
• Thermal Generation Share of Potential: 71%

Central Puerto S.A. (CEPU) - Canvas Business Model: Revenue Streams

Central Puerto S.A. derives its income from several distinct energy and related service channels. You see a clear split in the core power sales as of the third quarter of 2025.

The Trailing Twelve-Month (TTM) Revenue for Central Puerto S.A. was approximately $0.80 Billion USD as of November 2025.

For the third quarter of 2025, the total revenues reached $233.9 million, with the mix heavily influenced by market dynamics and regulatory changes.

The contracted power sales component includes revenue from Power Purchase Agreements (PPA) and the RenovAr program.

Capacity payments from the Argentine government represent another stream, often tied to ensuring availability under various regulatory frameworks, which are evolving with market reforms like Resolution 400/25.

Revenue from the Natural Gas Transport and Distribution segment is recognized through the resale of capacity. For instance, the resale of gas transport and distribution capacity was reported at $2 million in the first quarter of 2025.

Key components contributing to the overall revenue include:

• Contracted power sales, such as those under RenovAr or long-term PPAs.
• Spot market energy sales, which benefit from fuel cost pass-through mechanisms.
• Revenue from the resale of gas transport and distribution capacity.
• Capacity payments from the Argentine government supporting generation units.

Also, Central Puerto S.A. reported revenues from steam sales and revenues from CVO thermal plant management in its first quarter 2025 breakdown.