|Year:||2014 (May 13th)|
|Policy status:||In Force|
|Date Effective:||2014 (May 13th)|
2014 (Dec 2nd): Decree 2469;
2015 (Nov 4th): Decreee 2143
|Policy Type:||Regulatory Instruments, Economic Instruments, Economic Instruments>Fiscal/financial incentives, Economic Instruments>Fiscal/financial incentives>Tax relief, Economic Instruments>Fiscal/financial incentives>User charges, Economic Instruments>Market-based instruments, Economic Instruments>Direct investment|
|Renewable Energy Policy Targets:||Multiple RE Sources, Multiple RE Sources, All|
|Policy Sector:||Electricity, Framework Policy|
|Size of Plant Targeted:||Small and Large|
|Agency:||Ministry of Mines and Energy (Ministerio de Minas y Energía)|
|Legal References:||Law 1715|
|Renewable Energy Description:|
The law 1715 encourages the integration of alternative energy in the Colombian Energy mix. This law aims to incentivise private capital investment in renewable energy integration. The law provides fiscal incentives, establishes a dedicated fund and creates the legal basis for development of renewable energy support initiatives, thus paving the way for further policy and regulatory action.
The law mandates the government to establish rules and guidelines for the sale of renewable electricity by large- and small-scale self-generators, including simplified procedures and net metering for small-scale generators. UPME (Unit of Energy Mining Planning - Unidad de Planeación Minero Energética) is in charge of defining the maximum power limit of small-scale self-generation.
Fiscal incentives are also provided by the law, including:
The law mandates the harmonization of environmental requirements, the development of environmental impact assessment procedures for renewable energy projects, and the establishment of a rapid assessment cycle for renewable energy projects.
It aims for the substitution of diesel generation in isolated areas with renewable energy, either through exclusive concessions or through other incentives. It creates a dedicated fund for Renewable Energy and Energy efficiency (FENOGE) to provide soft loans and other forms of support for energy access and productive activities, mainly with renewable energy.
The law 1715 also extendes until 2021 the dedicated fund for Energy Access of Isolated Areas (FAZNI) previously established by law 633 and extended by law 1099.
Decree 2469 of 2014: The Decree establishes guidelines, including that large self-generators should receive a treatment equivalent to regular generators and need to subscribe reliability supply contracts. The Decree modifies Law 1715, Law 697 and Law 143.
Resolution 281 of 2015: UPME mandates through resolution 281 that small-scale self-generation is limited to 1 MW (corresponding to the installed capacity of the self-generation system)
Decree 2143 of 2015: Includes a Chapter to the Law 1715 of 2014 on Tax Benefits for the promotion, development and use of Non-Conventional Energy Sources, especially those of a renewable nature. Taxpayers who directly make new expenditures on research, development and investment in the field of 'production and use of energy from renewable energy sourcers or efficient energy management, will be entitled to deduct up to fifty percent (50%) of the value of investments.
In order to view a full versions of the Colombia's Law 1715, regulating the Integration of Non Conventional Renewable Energies to the National Energy System please click here.
Last modified: Fri, 02 Mar 2018 10:33:39 CET