Law on the Promotion of Electric Power Generation with Renewable Resources (Ley de Promoción para la Generación de Energía Eléctrica con Recursos Renovables)

The Law for the Promotion of Electric Power Generation with Renewable Resources, approved under Decree 70-2007 aims to promote public or private power generation projects through renewable resources. The law aims to:

• Facilitate the investment and development of renewable energy resources;
• Introduce reforms in the process of granting permits to speed up studies and construction of new power generation from renewable resources;
• Create new sources of direct employment in the rural sector during construction of projects;
• Increase the efficiency of the national grid through increased distributed generation;
• Promote competition among a larger number of agents;
• Improve the quality of life of the inhabitants in rural areas, and
• Find new alternatives to traditional energy sources.

It establishes that renewable energy producers, in addition to direct contracting procedures can participate in auctions from the public utility National Electric Energy Company (Empresa Nacional de Energía Eléctrica, ENEE).

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