The decree, which details procedures for income tax and VAT exemption, is up for public consultation until 22 April, after which the government will publish a final version.
The decree will add details to a law approved in May 2014 that aims to introduce renewable power into Colombia’s 15.5 GW mix.
The regulations allow investors a discount of 50% of income tax for five years after the start of investments in renewable power or energy-efficiency projects.
Additionally, the regulations suggest exemption of VAT on all machinery and equipment, as well as services that will be used for new renewable energy projects.
Colombia has only one 18M W wind farm in operation, equivalent to 0,2% of total installed capacity in the South American nation.
There are, however, three wind power projects in the country’s northern region registered for development at the Mines and Energy Ministry.
The three projects, being developed by local company Jemeiwaa Ka’i have a combined capacity of 474 MW and are waiting for environmental licenses. Colombia has an estimated wind energy potential of 21 GW.
No significant solar generation is in place, although there is ongoing government discussion over boosting micro-generation and PV arrays in isolated regions beyond the reach of the national grid.