The vice minister of energy, Diego Mesa, took the stage of the Third International Energy Forum to talk about the government’s achievements in favor of the industry.
The renewable energy sector asked the government to provide more incentives and ask for less red tape to boost the industry’s growth, El Nuevo Siglo reported.
Mesa responded to the call, and took the stage of the event to said that authorities have promoted the development of energy projects through different mechanisms like the Financing Law.
The expert added that the National Development Plan (PND) also aims to set a 50% deduction of the income tax to investments made in renewable energy projects, going from five to 15 years.
“Another policy that is being studied is the elimination of procedures before the National Environmental Licensing Agency (ANLA), which will help the industry access the benefits established in Law 1715 of 2014, making processes more expeditious,” he said.
In addition to this, the government plans to exclude Value Added Tax (VAT) in the acquisition of products like solar panels, energy inverters for single energy systems with solar panels and charge controllers for solar energy systems.
“This is what I call a democratization of the law. We are going to make this last exemption automatic. The idea is to continue promoting growth and to become a real alternative in large-scale generation and for small and large users,” he explained.
James Ellis, head of research for Latam Bloomberg NEF, also said that according to industry experts and based on the announcement of new energy auctions, Colombia can be positioned as a benchmark in the energy market for other Latin American countries.
“To date, Colombia has seen very little in terms of renewable energy progress, but this is about to change; US$247M was invested in 2018, mostly in solar energy projects. Our forecast for renewables shows important changes with strong growth,” he said.
Bottom-line: The industry asked and the government delivered. This news is the start of big things to come, and like we said at the beginning of the year, 2019 will be a historic year for the development of energy projects.