The Decree 85 of 1998, regulated by Decree 267-98, provides the legal framework for renewable energy deployment. The law:
- Sets renewable energy development projects as a priority over conventional sources in public procurement of electricity when all other conditions are equal.
- Establishes tax exemptions in favor of developers of the generation projects including: import duty and sales taxes on equipment, and income taxes.
- Provides a 10% premium, to be paid to renewable electricity producers on the price of electricity sold to the national utility (ENEE).
- Creates a dedicated fund to develop renewable energy projects, to be financed through penalties for infringement of the electricity law and international cooperation.
Additionally, the Decree requires environmental impact assessments for all renewable energy projects. For energy crops, it also prohibits the introduction of species that can create an ecological imbalance.