Regulation & Policy Apr 29, 2021 7:40 PM
Lucas Arboleda Henao is the new Director of the Energy Law and Natural Resources practice area at DLA Piper Martínez Beltrán and he spoke about the energy transition process.
Henao said that the new technologies generated a diversification of investors, projects and players that participate for the production and emission of energy, according to Asuntos Legales.
“Throughout the chain, we are seeing innovations that generate more business, but at the same time more complexity and regulatory dynamism. We are experiencing a moment of transformation and digitization in the sector that will bring more investors,” Henao highlighted.
The expert said that the government has given incentives, has established a regulatory framework to encourage the energy transition.
“However, it will be in the hands of the private sector to really achieve the energy transition, through investments, the development of new technologies, large-scale self-generation and distributed generation projects,” Henao said.
He said that there are national and international investors who are interested in diversifying their portfolio, participating in new projects, making new investments in renewable and conventional energy.
“We have many approaches from international companies that want to enter Colombia because they see the country’s attractiveness in energy transition,” Henao said.
Henao explained that this is thanks to that regulatory framework, the incentives, and the opportunities that the government has given.
“We have a lot of potential in geothermal and hydrogen, among others,” Henao said.
The expert said that it is necessary to analyze how the regulation can be adapted for the entry into operation of generation plants.
José Miguel Mendoza, Partner of the firm, added that the tax reform and the initiatives to include VAT on the purchase of panels or batteries could have an impact on the energy transition.
“However, one of the Government’s flags is the transition and all the policy is going to be articulated so that the locomotive of the energy revolution does not stop,” Mendoza said.
Mendoza said that the sector and investors should wait to see what results from this discussion.
“In the energy sector there is good legal stability. We have a legal framework that creates the right conditions to attract investment,” Mendoza said.
Bottom-Line: The possible imposition of VAT on solar panels has generated much concern in the renewable energy sector, due to its possible implications for future projects in the country.
However, the discussion on tax reform is beginning and it has several detractors, so it could have modifications in Congress.