In an effort to balance its power mix, the Colombian Mines and Energy Ministry has released a decree introducing tax incentives for all new non-conventional power plant projects. According to the decree, the projects using renewable energy sources will enjoy four tax breaks, namely a 50% tax break on investment over five years, accelerated depreciation of assets, zero sales tax for project associated goods and exemption from import duty. The tax incentives are to become effective in February 2016.
In September 2015, the Ministry of Mines and Energy and the Energy Mining Planning Unit (UPME) launched a study called Integration of Non-Conventional Renewable Energy in Colombia which contains recommendations on the development of wind projects in high potential area La Guajira, and self-generation of distributed solar, cogeneration systems from the use of biomass, geothermal projects and hybrid systems generating schemes.
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