Policy status:In Force
Date Effective:2008
Date Amended:


2011 (Mar 23rd)- Decree 012 of 2011 regulates the Decree for the Promotion of Renewable Energy (Decree 1002 of 2008). 

Policy Type:Economic Instruments>Direct investment>Infrastructure investments, Economic Instruments>Fiscal/financial incentives>Tax relief, Economic Instruments>Fiscal/financial incentives>Feed-in tariffs/premiums, Economic Instruments>Fiscal/financial incentives>Grants and subsidies, Policy Support>Strategic planning
Policy Target:Multiple RE Sources>Power
Policy Sector:Electricity
Agency:Ministry of Energy and Mines
Legal References:LD No. 1002

Law 1002 of 2008 identifies the development of electricity from renewable enrgy sources as a public necessity of national interest, and designates the Ministry of Mines and Energy to be responsible for the design of the national renewable energy policy. In so doing, the Ministry is to establish a National Renewable Energy Development Plan to be funded by the Annual Budget Law, external debt operations, direct investments and contributions allocated by international institutions.

In addition, the Ministry will design Renewable Energy Deployment Plans every five years and set up generation targets for electricity from renewable sources.


The 2008-2013 plan targets that 5% of the total power demand will come from renewable sources by 2013, excluding hydro plants over 20 MW.

Grid access:

The legislation provides renewable electricity producers connected to the grid with a guaranteed distribution and transmission priority access, and a steady price over a twenty-year period. To sell all or part of their electricity production, individual producers will interact on the short-term market and sell it at market price. They will then receive a premium fixed on a project-by-project basis by the Superior Organism of Energy and Mines Investment (ODSINERGMIN).


The Decree 012 of 2011 regulates the Decree for the Promotion of Renewable Energy (Decree 1002 of 2008).

Based on the auction system implemented by Law 28832 of 2006, Decree 1002 of 2008, regulated by Decree 012 of 2011, establishes a mechanism were long-term guaranteed tariffs for electricity from renewable energy sources are auctioned biannually. The PPAs are awarded for between 20-30 years. The guaranteed tariff, denominated in USD, is met through electricity sales in the spot market (and the capacity market if applicable) complemented, as needed, by a premium.

Decree 012 of 2011 also states that contract guarantees follow an original approach whereby any shortcoming in the contracted amount of electricity results in a reduction of the premium by the same percentage for that year. E.g., if a renewable producer only generates 85% of the contracted electricity on a given year, he or she will only receive 85% of the guaranteed tariff for that year. Surplus generation sells on the spot market with no premium.

For grid access, Decree 012 of 2011 provides that renewable energy producers only pay incremental costs for transmission, to be agreed by the parts and determined by the government if there is no agreement.

Last modified: Wed, 29 Mar 2017 09:13:02 CEST