Expands private investment in renewable energy generation

On 27 October 2024, the National Assembly unanimously approved the Organic Law to Promote Private Initiative in Energy Generation, aimed at boosting private investment in the electricity sector. Key provisions include:

• Automatic State incentives for private projects using solar, wind, hydro, or geothermal energy.
• Electricity distributors can sign Long-Term Power Purchase Agreements (PPAs) with private generators via public tenders, with state-backed financial guarantees.
• Private projects up to 100 MW are now permitted with Ministry of Energy and Mines approval (up from 10 MW). Projects outside the Electricity Master Plan (PME) can proceed at investors’ risk.
• Companies must submit plans to reduce fossil fuel use, with incentives for hybrid projects and facilitated natural gas import licenses.
• Projects previously limited to 10 MW can request adjustments to the new 100 MW threshold.

• Type:

  • Entry and establishment (Ownership and control)
  • Promotion and facilitation (Investment incentives)

• Industry:

  • Services (Electricity, gas, steam and air conditioning supply)

• Sources:

  • Assemblea nacional, LEY ORGÁNICA PARA IMPULSAR LA INICIATIVA PRIVADA EN LA GENERACIÓN DE ENERGÍAS CALIFICADA COMO URGENTE EN MATERIA ECONÓMICA, https://www.fielweb.com/App_Themes/InformacionInteres/2e7635a9-e4a9-447f-afd2-c655d7f7c358%20(1).pdf, 27 Oct 2024