Regulation & Policy Jun 9, 2021 4:07 PM
Colombian authorities announced tax incentives for several renewable energy projects.
The government issued tax benefit certificates for 1,013 renewable energy projects, generating 5,417.18 MW, Valora Analitik reported.
These incentives are 50% income tax deduction, VAT exclusion, accelerated depreciation, and no tariffs for products, all contemplated in Law 1715.
The government said that most of the projects are solar (929) with a capacity of 2,414.66MW, followed by wind (18) with a capacity of 2,567MW, biomass (31) with a capacity of 287.12MW and small hydro (34) with a capacity of 148.39MW.
Authorities granted incentives to 225 projects between January and April 2021.
Colombia’s Mining and Energy Planning Unit (UPME) said that there are 45 initiatives ‘in the process of certification’, and another 37 in requirement.
The entity implemented the procedures for renewable energy projects to qualify for the tax benefits contemplated in Law 1715 through Resolution 203.
In addition, UPME digitalized all the steps, facilitating the management of tax benefits, allowing users to access them in 45 days.
Bottom-Line: Simplifying the steps and procedures to access these tax benefits is a great step to accelerate the development of projects and attract investors’ interest.
The Colombian government has done a great job in promoting renewable energies. However, it is important to make a greater effort on social issues and environmental licenses.