Unconventional renewables and social investment

Regulation & Policy    Apr 26, 2021 5:10 PM

The Ministry of Mines and Energy (MinEnergia) spoke about transfers from unconventional renewables and their use for social investment.

The entity said that municipalities located around energy generation projects with unconventional renewable sources may receive transfers which must be used for social investment, El Heraldo said.

MinEnergia said that these resources should be used for the development of investment projects in infrastructure, public services, and drinking water.

“Colombia’s energy transition is also synonymous with equity,” MinEnergia Diego Mesa highlighted.

The new regulation requires that generation plants with a total nominal installed power over 10,000 kilowatts must pay a royalty equivalent to 1% of gross energy sales.

The entity explained that 40% of the resources will be transferred to the municipalities located in the area of influence of generation projects and the remaining 60% will be delivered, in equal parts, to ethnic communities.

The government said that the regulations for the distribution to ethnic communities will be issued shortly, since these must pass a prior consultation stage.

These new provisions greatly favor the Caribbean Coast and 14 large-scale wind and solar projects are currently being developed in La Guajira, Cesar, Córdoba, Valle del Cauca, and Tolima.

The entity highlighted that the construction these projects will represent investments of more than CoP$7.0T and more than 6,000 job opportunities.

“These figures show that unconventional renewable energies will be essential to drive the Sustainable Reactivation that the country needs,” Mesa said.

Bottom-Line: Discontent of communities against large-scale projects has been due to the high levels of corruption with the resources destined for social projects.

Authorities must guarantee the proper administration and development of these resources to avoid social problems in the future.

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