Altenative Energy

The country has a strong potential for the production of Alternative Energy due to the availability of resources that allow us to develop energy through hydroelectric, solar,  wind power, biomass (ethanol, bio-diesel), among other sources; as well as the capacity and the legal framework that supports and encourages the development of the energy sector.

  
The implementation and development of the alternative energies in the country have a strategic character improving its economic costs and its competitiveness with the countries of the region.

On May 7th 2007 the Law 57-07 on Special Incentives for the Development of Alternative Sources of Energy and its Regimes was promulgated with the objective of increasing the diversity of energy in the country, of reducing the dependency of fossil fuels and of stimulating the private investment projects to develop alternative sources of energy.

This law grants fiscal incentives for the production and use of alternative energy such as the total tax exemption for imports of equipment and accessories required by the companies and/or people that are necessary for the production of energy of alternative source. These equipments and machineries will also be exempt of the payment of Value Added Taxes.

In order to benefit from this law, the projects will need the approval of the National Energy Commission, which is the entity in charge of creating the favorable conditions to promote the sustainable development of the energy sector in a competitive legal framework that contributes in order to obtain a safe industry in the preservation of the environment, and a harmonious relationship between the actors and the development of a new culture of rational use of energy.