Enacts new legislation on electricity generation activities from renewable sources

10 Jul 2021

On 10 July 2021, the President of Colombia promulgated the new Energy Transition Law (Law No. 2099 of 2021). The new legislation modifies the regulatory framework for power generation from non-conventional renewable sources (NCRS) and legally establishes green hydrogen and blue hydrogen as NCRS.

Among its most relevant aspects, the Energy Transition Law maintains and extends previously existing tax incentives projects for power generation from NCRS (deduction of investments and VAT exclusions, inter alia) and creates a new set of regulations for geothermic projects, mainly in the form of a National Registry for exploration and operation projects, established by the Ministry of Mines and Energy.

Law No. 2099 introduces a new requirement, the mandatory registration in the National Registry for all geothermic exploration and operation projects. In case of failure to comply with the registration requirement, the law establishes sanctions that can range from a financial penalty to the suspension or revocation of an exploration or operation permit.