The Ministry of Mines and Energy of Colombia has issued the Decree 0570 of March 23, 2018 to boost long-term contracting of electric power generation projects from renewable sources, although it is also true that this Ministry is on the other hand encouraging the increase of investments in hydrocarbon exploration, as well as the increase of oil reserves.
“This is the tool that complements the public policy to allow the country to enter firmly into the era of renewable energy generation. With this Decree we are also guaranteeing energy security, because when we lack water, or gas, we will also have the sun and the wind, and that diversification makes us less vulnerable in cases such as the El Niño Phenomenon, ” Germán Arce Zapata, Minister of Mines and Energy explained.
Decree 0570 of March 23, 2018 establishes objectives to strengthen, diversify and complement the power generation matrix, which will result in an efficient price formation and the exploitation of the potential of renewable resources. Likewise, regional energy security and the reduction of greenhouse gas emissions are encouraged, which will allow Colombia to comply with the 2030 commitments undertaken at COP21, the Ministry said in a statement.
This Decree also establishes the characteristics of the promotion mechanism; review and follow-up activities; deadlines to determine the transfer to users of the efficient costs that are achieved and provisions regarding the integration of these new projects into the National Interconnected System, they explain.
Another Decree, 2253 of December 29, 2017, regulates the new incentive called ‘Certificate of Tax Reimbursement’ (CERT) to investments in hydrocarbons.
It is also true that this Ministry is encouraging the increase of investments in hydrocarbon exploration, as well as the increase of oil reserves. According to another statement, in December the Ministry of Finance and Public Credit in conjunction with the Ministry of Mines and Energy, regulated through Decree 2253 of December 29, 2017 the requirements and conditions to be met by companies wishing to access the new incentive ‘ Tax Reimbursement Certificate (CERT) for investments in hydrocarbons.
“The CERT is an instrument designed by the National Government with which we will seek to increase the country’s competitiveness and attract new resources for investment in the energy mining sector. It is an excellent time to increase reserve and production levels, generate higher income and thus, reduce poverty and improve the quality of life of many Colombians, ” Germán Arce said.
“Boosting exploration activity is undoubtedly a strategy that will open new opportunities for employment, business, progress and well-being for our regions, while it guarantees Colombia’s energy self-sufficiency in the medium and long term,” he added.