Key Benefits:
LAW 1715 OF 2014
(May 13)
Official Journal No. 49.150 of 13 May 2014
CONGRESS OF THE REPUBLIC
By means of which the integration of non-conventional renewable energies into the National Energy System is regulated.
COLOMBIA CONGRESS
DECRETA:
GENERAL PROVISIONS.
ARTICLE 1o. OBJECT. This law aims to promote the development and use of non-conventional energy sources, mainly those of a renewable nature, in the national energy system, through their integration into the market electricity, its participation in non-interconnected areas and in other energy uses as a necessary means for sustainable economic development, the reduction of greenhouse gas emissions and the security of energy supply. For the same purposes, it seeks to promote the efficient management of energy, which includes both energy efficiency and demand response.
ARTICLE 2o. PURPOSE OF THE LAW. The purpose of this law is to establish the legal framework and instruments for the promotion of the use of non-conventional energy sources, mainly those of a renewable nature, as well as for the promotion of investment, research and development of clean technologies for energy production, energy efficiency and demand response, in the framework of national energy policy. It also aims to establish lines of action for the fulfillment of commitments made by Colombia in the field of renewable energy, efficient energy management and reduction of greenhouse gas emissions, such as those acquired through the approval of the status of the International Renewable Energy Agency (Irena) by Law 1665 of 2013.
These are the purposes of this law:
a) Orienting public policies and defining the tax, tariff, accounting and participation instruments in the Colombian energy market that guarantee the fulfillment of the commitments outlined in the previous paragraph;
b) Incentives for the penetration of non-conventional energy sources, mainly those of a renewable nature in the Colombian energy system, energy efficiency and demand response in all sectors and activities, with environmental, social and economic sustainability criteria;
c) Establish mechanisms for cooperation and coordination between the public sector, the private sector and users for the development of non-conventional energy sources, mainly those of a renewable nature, and the promotion of management energy efficiency;
d) Establish the duty of the State through the entities of the national, departmental, municipal or political programs and to develop programs and policies to ensure the momentum and use of mechanisms to promote the efficient management of the energy of the penetration of non-conventional energy sources, mainly those of a renewable nature, in the Colombian energy basket;
e) To stimulate investment, research and development for the production and use of energy from non-conventional energy sources, mainly those of a renewable nature, by establishing incentives tax, tariff or accounting and other mechanisms to stimulate the development of such sources in Colombia;
f) Establishing the criteria and principles that complement the current legal framework, granting certainty and stability to the sustainable development of unconventional sources of energy, mainly those of a renewable nature, and promoting the efficient management of energy. By gradually removing or overcoming the legal, economic and market barriers, thereby creating the conditions for the exploitation of non-conventional energy sources, mainly those of a renewable nature, and the development of an energy efficiency and demand response market;
g) Set the legal basis for establishing national and cooperative strategies that contribute to the purpose of this law.
ARTICLE 3o. scope of the present law covers all public and private actors involved in the definition of sectoral policies in the development and exploitation of non-conventional sources of energy, mainly those of a renewable nature, in the promotion of the efficient management of energy, and in the provision of the electric power service and its complementary activities in accordance with the provisions of the href="ley_0142_1994.html#Inicio"> 142 and 143 1994 and other rules complementary.
ARTICLE 4. DECLARATORY OF PUBLIC UTILITY AND SOCIAL INTEREST. The promotion, encouragement and incentive to the development of the activities of production and use of non-conventional sources of energy, mainly those of a renewable nature, is declared as a matter of public utility and social, public and national convenience, fundamental to ensure the diversification of the full and timely energy supply, the competitiveness of the Colombian economy, the protection of the environment, efficient use of energy and the preservation and conservation of natural resources renewable.
This public utility or social interest rating will have the appropriate effects for its primacy in all aspects of land management, urban planning, environmental planning, economic promotion, and positive evaluation of the procedures. concurrency and selection administrative, as well as for the effects of forced expropriation.
ARTICLE 5o. DEFINITIONS. For the purposes of interpreting and applying this law, it is understood by:
1. Self-generation. This activity is carried out by natural or legal persons who produce electrical energy mainly to meet their own needs. In the event that surplus electric power is generated from such activity, they may be delivered to the network, in the terms established by the Energy and Gas Regulatory Commission (CREG) for that purpose.
2. Large-scale self-generation. Self-generation whose maximum power exceeds the limit set by the Mining-Energy Planning Unit (UPME).
3. Small-scale self-generation. Self-generation whose maximum power does not exceed the limit set by the Mining-Energy Planning Unit (UPME).
4. Cogeneration. Combined production of electrical energy and thermal energy that is an integral part of a productive activity.
5. Two-way Counter. Counter that accumulates the difference between the pulses received by their ascending account and top-down account entries.
6. Sustainable Development. This development that leads to economic growth, to the elevation of quality of life and social welfare, without depleting the base of renewable natural resources on which it is based, nor to deteriorate the environment or the right of future generations to be used for the satisfaction of their own needs, at least under the same conditions as the current ones.
7. Energy Efficiency. It is the relationship between the energy used and the total used in any process of the energy chain, which seeks to be maximized through good practices of technological conversion or replacement of fuels. Through energy efficiency, it is sought to obtain the greatest advantage of energy, either from the use of a primary form of energy or during any activity of production, transformation, transport, distribution and consumption of energy. different forms of energy, within the framework of sustainable development and respecting the current regulations on the environment and renewable natural resources.
8. Biomass energy. Energy obtained from that unconventional source of renewable energy that is based on the spontaneous or induced degradation of any type of organic matter that has had its immediate origin as a consequence of a biological process and all plant material originating from the photosynthesis process, as well as from the metabolic processes of the heterotrophic organisms, and which does not contain or have been in contact with traces of elements that confer some degree of danger.
9. Energy of the seas. Energy obtained from that non-conventional source of renewable energy which includes marine natural phenomena such as tides, waves, marine currents, ocean thermal gradients and salinity gradients, between other possible.
10. Energy of small hydroelectric power plants. Energy obtained from that unconventional source of renewable energy that is based on small-scale water bodies.
11. Wind energy. Energy obtained from that unconventional source of renewable energy consisting of the movement of air masses.
12. Geothermal energy. Energy obtained from that non-conventional source of renewable energy consisting of the heat lying on the ground subsurface.
13. Solar energy. Energy obtained from that unconventional source of renewable energy consisting of the electromagnetic radiation from the sun.
14. Surplus energy. The excess energy once covered by the consumption needs of a self-generation or cogeneration activity.
15. Conventional sources of energy. They are those energy resources that are used intensively and widely marketed in the country.
16. Non-Conventional Energy Sources (FNCE). They are those energy resources available globally that are environmentally sustainable, but in the country they are not employees or are used in a marginal way and are not widely marketed. Nuclear or atomic energy and the FNCERs are considered to be FNCE. Other sources may be considered as FNCE as determined by the UPME.
17. Non-Conventional Renewable Energy Sources (FNCER). They are those renewable energy resources available globally that are environmentally sustainable, but in the country they are not employees or are used in a marginal way and are not widely marketed. Biomass, small hydropower, wind, geothermal, solar and the seas are considered to be FNCER. Other sources may be considered as FNCER as determined by the UPME.
18. Distributed Generation (GD). It is the production of electrical energy, near the consumption centers, connected to a Local Distribution System (SDL). The capacity of the distributed generation shall be defined according to the capacity of the system where it is to be connected, according to the terms of the connection code and other provisions that the CREG defines for that purpose.
19. Efficient management of energy. A set of actions aimed at ensuring energy supply through the implementation of energy efficiency and demand response measures.
20. Demand response. It consists of changes in the consumption of electrical energy by the consumer, with respect to a usual pattern of consumption, in response to price signals or incentives designed to induce low consumption.
21. National energy system. Set of energy sources, infrastructure, producer agents, transporters, distributors, marketers and consumers that give rise to the exploitation, transformation, transport, distribution, marketing and consumption of energy in its different forms, understood as electrical energy, liquid, solid or gaseous fuels, or other. They are part of the National Energy System, among others, the National Interconnected System, the Non-Interconnected Zones, the national networks of transport and distribution of hydrocarbons and natural gas, the refineries, the oil fields and the coal mines, to mention just a few of its elements.
22. Non-interconnected Zones (ZNI). Non-Interconnected Zones are defined as municipalities, corregimientos, localities and hamlets not connected to the National Interconnected System (SIN).
ARTICLE 6o. ADMINISTRATIVE POWERS. It is the responsibility of the National Government, the exercise of the following administrative powers, subject to the provisions of this Law, as follows:
1. Ministry of Mines and Energy.
(a) To issue within the twelve (12) months following the entry into force of this law the energy policy guidelines on generation with FNCE in the Non-Interconnected Zones, the delivery of surplus from self-generation to small and large scale in the National Interconnected System, the connection and operation of the distributed generation, the operation of the Fund of Non-Conventional Energy and Efficient Energy Management and other measures for the efficient use of energy. These guidelines must correspond to what is defined in this law and the Laws 142 and 143 of 1994.
b) Establish technical regulations governing generation with different FNCEs, distributed generation and delivery of small-scale self-generation surpluses in the distribution network;
c) Exorder the necessary normativity to implement labeling and consumer information systems on the energy efficiency of manufactured processes, facilities, and products;
d) Participate in the elaboration and approval of FNCE promotion plans and energy efficient management plans;
e) To promote low-carbon development of the energy sector from the promotion and development of unconventional energy sources and energy efficiency.
2. Energy and Gas Regulatory Commission (CREG).
a) Establish procedures for the connection, operation, backup, and marketing of distributed self-generation power, in accordance with the principles and criteria of this law, Laws 142 and 143 1994 and the energy policy guidelines to be set for that purpose.
The Commission will establish simplified procedures for self-generators with energy surpluses less than 5MW;
b) Establish regulatory mechanisms to incentivize demand response and improve energy efficiency in the National Interconnected System, in accordance with the principles and criteria of this law, the href="ley_0142_1994.html#Inicio"> 142 and 143 of 1994 and the energy policy guidelines to be set for that purpose.
3. Mineral-Energy Planning Unit (UPME).
a) Define and keep updated the listing and description of the generation sources that are considered to be ENC;
b) Define the maximum power limit of the Small Scale Self-Generation;
c) Conduct mass and focused outreach programs on Small Scale Self-Generation and the efficient use of energy.
4. Ministry of Finance and Public Credit.
a) Grant grants and other support for the promotion of research and development of the FNCE and the efficient use of energy to public and private universities, NGOs and non-profit foundations that advance projects in this field duly endorsed by Colciencias, as laid down in Law 29 of 1990 and Decree number 393 of 1991;
b) To participate jointly with the Ministries of Mines and Energy and the Environment and Sustainable Development, in the elaboration and approval of the Energy Efficient Management Plans and the FNCE promotion plans, mainly those of renewable character.
5. Ministry of Environment and Sustainable Development.
(a) Within the framework of their competences, incorporate in environmental policies, the environmental principles and criteria of the FNCE, cogeneration, self-generation, distributed generation and efficient management of the energy they entail environmental benefits, to drive them nationally;
b) To participate jointly with the Ministries of Mines and Energy and Finance and Public Credit in the elaboration and approval of the energy efficient management plans and the FNCE development plans;
c) Evaluate environmental benefits with respect to the promotion, promotion and use of FNCE;
d) Establish the procedure and requirements for the issuance of environmental benefits certification, for the granting of tax benefits for the use of FNCE, cogeneration, self-generation and distributed generation, as well as for the efficient management of energy, as provided for in this law and based on the energy policy guidelines for generation with FNCE and energy efficiency established by the Ministry of Mines and Energy;
e) Support the Ministry of Mines and Energy to ensure a low carbon development of the energy sector, from the promotion and development of unconventional energy sources and energy efficiency;
f) Promoting scientific research, technological development and innovation of interest, in the field of renewable energy and energy saving and efficiency.
6. National Environmental Licensing Authority.
a) Establish a rapid assessment cycle for projects relating to the extension, improvement and adaptation of electricity and gas networks and installations, FNCE projects, cogeneration, self-generation, distributed generation and management energy efficient that will bring benefits to the environment, in order to contribute to ensure an adequate quality and safety in the supply of energy, with a minimum environmental impact and in an economically sustainable way to achieve the purposes set out in this law.
7. Regional Autonomous Corporations.
(a) Regardless of the competencies of the National Government, support in the competition the momentum of projects of generation of FNCE, cogeneration from the same generation distributed and efficient management of the energy in its jurisdiction;
b) Establish a rapid assessment cycle for projects and permits, authorisations or concessions of their competence for the extension, improvement and adaptation of electricity and gas networks and installations, of FNCE, cogeneration and self-generation, distributed generation and efficient energy management that bring benefits to the environment, in order to contribute to ensuring adequate quality and safety in the supply of energy, with minimal impact environmental and in an economically sustainable manner to achieve the objectives outlined in this law;
(c) Coordinate their actions with the actions foreseen in the energy efficient management plans and in the FNCE development plans and cooperate with the National Government in order to support the achievement of the objectives outlined in the the same, reporting on the actions taken and the achievements in their jurisdiction.
PROVISIONS FOR ELECTRICITY GENERATION WITH FNCE AND EFFICIENT ENERGY MANAGEMENT.
ARTICLE 7o. PROMOTION OF ELECTRICITY GENERATION WITH FNCE AND EFFICIENT ENERGY MANAGEMENT. The National Government will promote the generation with FNCE and the efficient management of energy by issuing energy policy guidelines, technical and economic regulation, tax benefits, advertising campaigns and other necessary activities, in accordance with the competencies and principles established in this law and the Laws 142 and href="ley_0143_1994.html#Inicio"> 143 1994.
ARTICLE 8o. PROMOTION OF SMALL AND LARGE SCALE SELF-GENERATION AND DISTRIBUTED GENERATION. The National Government will promote small and large self-generation and distributed generation through the following mechanisms:
a) Surplus delivery. Small and large scale self-generators are authorized to deliver their surplus to the distribution and/or transport network. The above will apply once the CREG issues the corresponding regulation. This regulation will be issued in accordance with the principles laid down in Laws 142 and 143 of 1994 and the energy policy guidelines issued by the Ministry of Mines and Energy for this purpose.
For the case of small-scale autogenerators using FNCER, the surplus to be delivered to the distribution network will be recognized, using a two-way measurement scheme, as energy credits, according to the rules that the CREG defines for this purpose, which will be based on the criteria set out in Laws 142 and 143 of 1994 to define the tariff regime, specifically the criterion of financial sufficiency;
b) Two-way measurement systems and simplified mechanisms for connecting and delivering surplus to small-scale autogenerators. Small-scale autogenerators will be able to use low-cost, two-way meters for the liquidation of their consumption and deliveries to the network, as well as simple procedures for connection and delivery of surpluses to make these mechanisms viable. can be implemented, among others, by residential users;
c) Power sales by distributed generators. The energy generated by distributed generators will be remunerated taking into account the benefits it brings to the distribution system where it is connected, among which the avoided losses, the useful life of the assets of the distribution, reactive power support, etc., according to the regulation that is issued by CREG for that purpose, in accordance with the principles laid down in Laws 142 and 143 of 1994 and the energy policy guidelines issued by the Ministry of Mines and Energy for the same;
d) Sale of energy credits. Those self-generators who, for the surplus of energy delivered to the distribution network, make themselves creditors of the energy credits referred to in subparagraph (a) of this Article, may negotiate such claims and the inherent rights. to them with natural or legal third parties, according to the rules that the CREG defines for that purpose;
e) Mass Disclosure Programs. The UPME will conduct mass outreach programs aimed at informing the general public about the requirements, procedures, and benefits of implementing small-scale self-generation solutions;
f) Targeted outreach programs. The UPME will conduct research on possible niches where small-scale, self-generation solutions are most likely to be implemented in a viable manner, and on this basis will carry out targeted outreach and training programs. about these technologies, as well as the preparation and publication of related technical and financial guides.
ARTICLE 9o. REPLACEMENT OF GENERATION WITH DIESEL IN NON-INTERCONNECTED AREAS. The National Government will implement a programme aimed at progressively replacing the generation with diesel in the ZNI with the aim of reducing the costs of providing service and emissions of gaseous pollutants, for which it will implement the following actions:
a) Areas of exclusive service of electric power and gas fuel: The National Government will be able to establish exclusive service areas for the provision by the same company of the services of electric power, natural gas, LPG distributed by networks and/or cylinders in the ZNI. These areas can be created with the aim of reducing the cost of providing services by replacing generation with diesel generation with FNCE and must comply with the requirements of the article 40 of Act 142 of 1994 and other provisions of that law;
b) Scheme of incentives for electricity service providers in non-interconnected areas: The Ministry of Mines and Energy will develop incentive schemes for electricity service providers in the ZNI partially or totally replace its generation with diesel by FNCE. These incentives will have to meet cost-benefit assessments resulting from the comparison of the cost of the incentives with the savings produced by the cost difference between the generation with FNCE instead of the diesel.
ARTICLE 10. NON-CONVENTIONAL ENERGY FUND AND ENERGY EFFICIENT MANAGEMENT (FENOGE). Create the Non-Conventional Energy and Energy Management Fund to finance FNCE programs and energy efficient management. The resources of this Fund may be provided by the Nation, public or private entities, as well as by multilateral and international organizations. This Fund will be regulated by the Ministry of Mines and Energy and managed by a trust that the Ministry of Mines and Energy will select for this purpose.
With the resources of the Fund, programs and projects aimed at the residential sector of strata 1, 2 and 3, for the implementation of small-scale, self-generation solutions, as well as for the improving energy efficiency by promoting good practices, equipment for the final use of energy, the adequacy of internal installations and architectural renovations.
The studies, energy audits, location adjustments, final disposal of replaced equipment, and administrative and/or project management costs may also be financed.
Projects funded under this Fund will have to meet cost-benefit assessments that compare the cost of the project with the economic savings or income produced.
INCENTIVES FOR INVESTMENT IN PROJECTS FROM UNCONVENTIONAL ENERGY SOURCES.
ARTICLE 11. INCENTIVES FOR THE GENERATION OF NON-CONVENTIONAL ENERGIES. As a promotion of research, development and investment in the field of energy production and use from FNCE, the efficient management of energy, the forced to declare income which makes direct investments in this respect, will have the right to reduce their income on an annual basis, for the 5 years following the taxable year in which they have made the investment, 50% (50%) of the total value of the investment performed.
The value to be deducted for this concept, in no case may be greater than 50% of the determined taxpayer's liquid income before subtracting the value of the investment.
For the purposes of obtaining this tax benefit, the investment causing it must obtain the environmental benefit certification by the Ministry of the Environment and be duly certified as such by the Ministry of the Environment. Environment and Sustainable Development, in accordance with the provisions of article 158-2 of the Tax Statute.
ARTICLE 12. INSTRUMENTS FOR THE PROMOTION OF FNCE. TAX INCENTIVE VAT. To encourage the use of energy from FNCE, national or imported equipment, components, machinery and services to be used preinvestment and investment, for the production and use of energy from non-conventional sources, as well as for the measurement and evaluation of potential resources will be excluded from VAT.
To this end, the Ministry of the Environment will certify the equipment and services excluded from the levy, based on a list issued by the UPME.
ARTICLE 13. INSTRUMENTS FOR THE PROMOTION OF RENEWABLE ENERGY. TARIFF INCENTIVE. Natural or legal persons who, as of the current law, are the holders of new investments in new projects of FNCE shall be exempt from the payment of the tariff duties for the import of machinery, equipment, materials and inputs intended exclusively for pre-investment and investment projects of projects with these sources. This tariff benefit shall be applicable and shall be on machinery, equipment, materials and inputs that are not produced by the domestic industry and its sole means of acquisition is subject to the import of such equipment.
The exemption from the payment of the Tariff Rights referred to in the previous paragraph will apply to FNCE generation projects and must be requested from the DIAN in a minimum of 15 working days prior to the importation of the machinery, equipment, materials and inputs required and intended exclusively for the development of renewable energy projects, in accordance with the documentation of the project endorsed in the certification issued by the Ministry of Mines and Energy or the entity that is Empower you for this purpose.
ARTICLE 14. INSTRUMENTS FOR THE PROMOTION OF FNCE. ACCOUNTING INCENTIVE ACCELERATED DEPRECIATION OF ASSETS. The generation activity from FNCE, will enjoy the accelerated depreciation regime.
The accelerated depreciation shall be applicable to the machinaras, equipment and civil works necessary for the pre-investment, investment and operation of the generation with FNCE, which are acquired and/or constructed exclusively for that purpose, from the validity of this law. For these purposes, the annual rate of depreciation shall be no more than 20% (20%) as an annual overall rate. The fee may be varied annually by the project holder, after communication to the DIAN, without exceeding the limit indicated in this article, except in cases where the law authorizes greater global percentages.
OF THE DEVELOPMENT AND PROMOTION OF THE FNCER.
ARTICLE 15. DEVELOPMENT OF ENERGY FROM FOREST BIOMASS.
1. The areas of selviculture that have a project of management, or equivalent forest management tools and those included in the National Forest Development Plan (PNDF), shall include among their instructions or contents. use of all the by-products and residues obtained in the use or treatment of the forest masses, with the exception of the possibility of their abandonment in these areas, with the exception of that percentage of organic matter required for maintain the conditions of the soil.
2. In the case of no forest management instruments or PNDF containing the above mentioned above, the use of all the instructions or conditions shall include the use of all the instructions or the conditions of use of the silvicultural treatments. by-products and residues obtained from the use or treatment.
3. Activities with preferential access to incentives, the implementation of multiannual plans for use or treatment incorporating the energy application of products, by-products or waste shall be included. These plans will be defined according to the periods needed to achieve an adequate selvage and energy use that will develop a productive structure and ensure the supply of biomass to potential users during a time period suitable for the development of energy projects.
4. The government, in coordination with the Autonomous Corporations, will dictate the necessary provisions to establish a mechanism to promote the implementation of multi-annual plans for the use or treatment of the application. energy of the by-products or waste.
ARTICLE 16. ENERGY FOREST REPOPULATIONS.
1. They shall have the consideration of energy forest repopulations in which planting or planting frames are established and a selviculture is carried out aimed at maximising performance in energy content and favouring the cutting, extraction and economic processing of the resource in a sustainable way. The destination of timber and woody products must be unique and exclusively energy.
2. The Government, in coordination with the Autonomous Corporations, will dictate the necessary arrangements for establishing instruments to promote the development of energy forest repopulations, taking into account the favorability of certain species, characteristics of the climate season and other factors.
ARTICLE 17. AGRICULTURAL BIOMASS. The National Government, in coordination with the Autonomous Corporations, will establish action plans in order to promote the energy use of agricultural biomass and prevent abandonment, uncontrolled burning in the exploitation or the dumping of agricultural waste.
1. The energy content of solid waste that is not susceptible to reuse and recycling will be considered as FNCER.
2. The energy content of both the biodegradable fraction and the fuel fraction of biomass residues will be considered as FNCER.
3. It will be considered as a fuel fraction of the waste that is oxidized without energy input once the combustion process has started.
4. The Ministry of Environment and Sustainable Development is empowered, in collaboration with the Autonomous Corporations to set the objectives of energy recovery for certain specific types of waste of energy interest from criteria environmental and environmental sustainability of waste management. To this end, it shall regulate a mechanism which shall indicate the required subjects and shall include a system permitting supervision and certification as well as a compensation payment scheme.
5. The Ministry of Mines and Energy is empowered to regulate technical standards that define the quality parameters to be met by the solid fuels recovered from different wastes. In addition, the Ministry of Environment and Sustainable Development in conjunction with the Ministry of Agriculture and Rural Development and the Ministry of Housing, City and Territory will develop joint strategies for solid fuels. recovered to the parameters which are deemed necessary in those standards, to be used for energy recovery. Those technical standards shall be defined taking into account the Community guidelines and shall include, inter alia, categories, qualities and areas of applicability as well as systems enabling the quality control or certification of such fuels.
ARTICLE 19. SOLAR ENERGY DEVELOPMENT.
1. Solar energy shall be considered as FNCR. The nature of the source of the source for its technical regulation by CREG should be studied and analysed.
2. The National Government through the Ministry of Mines and Energy, Ministry of Housing and Ministry of Environment and Sustainable Development in the framework of its functions, will encourage the use of the solar resource in municipal urbanization projects or district, in official buildings, in the industrial, residential and commercial sectors.
3. The National Government through the Ministry of Mines and Energy directly or through the entity designated for this purpose will regulate the conditions for the participation of solar energy as a source of distributed generation establishing the technical and quality regulations to be met by installations using solar energy, as well as connection requirements, surplus delivery mechanisms, and safety standards for installations.
4. The National Government will consider the feasibility of developing solar energy as a source of self-generation for strata 1, 2 and 3 as an alternative to the existing subsidy for electricity consumption of these users.
5. The National Government, through the Ministry of Environment and Sustainable Development, will determine the environmental parameters to be met by the projects developed with solar energy as well as the mitigation of the environmental impacts that may be present in their implementation.
6. The National Government will encourage the use of photovoltaic generation as a form of self-generation and in GD schemes with FNCER.
7. The National Government through the Ministry of Mines and Energy will consider measurement schemes for all the official or private buildings, industries, shops and residences that use sources of solar generation. The measurement scheme shall provide for the possibility of double-track measurement (net measurement), so as to enable a self-generation scheme for such installations.
ARTICLE 20. WIND ENERGY DEVELOPMENT.
1. Wind energy shall be considered as FNCER. The nature of the source of the source for its technical regulation by CREG should be studied and analysed.
2. The National Government through the Ministry of Mines and Energy will encourage the use of wind resources in projects of generation in isolated or interconnected areas.
3. The Ministry of Mines and Energy, directly or through the entity designated for this purpose, shall determine technical and quality requirements to be met by facilities using the wind resource as a source of generation.
4. The National Government, through the Ministry of Environment and Sustainable Development, will determine the environmental parameters to be met by the projects developed with wind energy, as well as the mitigation of environmental impacts. can be presented in the implementation.
ARTICLE 21. GEOTHERMAL ENERGY DEVELOPMENT.
1. Geothermal energy shall be considered as FNCER. The nature of the source of the source for its technical regulation by CREG should be studied and analysed.
2. Assessment of the potential of geothermal energy. The Government will launch instruments to encourage and encourage subsoil exploration and research for knowledge of the geothermal resource and to encourage its use of high, low and very low temperature.
3. The Ministry of Mines and Energy, directly or through the entity designated for this purpose, will determine the conditions for the participation of this type of energy in the Colombian energy market; it will establish the technical and quality to be met by installations using the geothermal resource as a source of generation.
4. The National Government, through the Ministry of Environment and Sustainable Development, will determine the environmental parameters to be met by the projects developed with geothermal energy, as well as the mitigation of environmental impacts. can be presented in the implementation.
ARTICLE 22. DEVELOPMENT OF SMALL HYDRO-ELECTRIC HARNESS.
1. The power of small hydroelectric harness will be considered as FNCER.
2. The Ministry of Mines and Energy, through the competent entities, will continue to promote its development as an energy solution.
3. The Ministry of Environment and Sustainable Development will promote the management and comprehensive and sustainable management of water resources in the country's river basins.
ARTICLE 23. DEVELOPMENT OF THE ENERGY OF THE SEAS. It will be considered the energy of the seas, understood as the exploitation of the waves, the exploitation of the tides and the exploitation of the thermal differential of the oceans as FNCER.
The government will put in place instruments to encourage and encourage the exploration and research of the seas in order to know the resource for harnessing the energy of the seas in the country.
ARTICLE 24. TRAINING AND TRAINING OF HUMAN CAPITAL. The National Government will encourage the training and training of qualified human capital for the development and implementation of projects in FNCER.
ARTICLE 25. INTERNATIONAL COOPERATION IN THE FIELD OF FNCER.
1. In the implementation of international cooperation actions, they shall have preferential scope to:
a) The joint development between bordering countries of FNCER projects;
b) Drive technology transfer;
c) Cooperation in research, development and innovation;
d) Building capacity for the development of unconventional energy sources.
2. In addition, in this context, and within the energy policy, the subsequent development of this law will have to lay the foundations for a national strategy of generation with FNCER in order to optimize the sources, with the more appropriate premiums, with sustainability and efficiency criteria, thus contributing significantly to the national objectives for the participation of the FNCERs in the energy consumption referred to in this law.
3. The Government will encourage the internationalization of the activity of Colombian companies in the sector of the FNCER. In this effort, specific action programmes will be drawn up which will pay particular attention to aspects relating to the transfer of technology and access to raw materials and the means of production needed for development. of the national sector of FNCER.
4. In addition, the Government will promote international cooperation in the field of FNCER, in particular with regard to the participation of the public and private sectors in different mechanisms of both the regulated market and the voluntary market of the carbon, as well as in the formulation and implementation of mitigation actions.
OF THE DEVELOPMENT AND PROMOTION OF EFFICIENT ENERGY MANAGEMENT.
ARTICLE 26. PROMOTION OF ENERGY EFFICIENCY. Under the development of the Program for the Rational and Efficient Use of Energy and Other Forms of Non-Conventional Energy, PROURE, designed by the Ministry of Mines and Energy, as provided by Law 697 2001, the Indicative Action Plan 2010-2015 to develop the PROURE adopted by the Ministry of Mines and Energy through Resolution 18-0919 of 2010, and in compliance with the objectives and principles established in this law, the Ministry of Mines and Energy, together with the Ministry of Environment and Sustainable Development and the Ministry of Finance and Public Credit will have to develop a series of technical, legal, economic, financial, planning and information instruments, among which they should be considered:
a) Indicative action plan for the development of PROURE;
b) Technical regulations;
c) Labelling and consumer information systems on the energy efficiency of processes, facilities and products and on the energy consumption of manufactured products;
d) Information and awareness campaigns.
ARTICLE 27. PURPOSE AND PURPOSE OF THE INDICATIVE ACTION PLAN FOR THE DEVELOPMENT OF THE PROJECT. The indicative action plan for the development of PROURE is the instrument that the Government will use to promote energy efficiency.
The plan of action indicative for the development of the PROURE will serve to concretize the actions in this field, the establishment of deadlines for the execution of the same, the attribution of responsibilities in the field of the Entities Public and the identification of different forms of funding and budgetary needs.
ARTICLE 28. CONTENT OF THE INDICATIVE ACTION PLAN FOR THE DEVELOPMENT OF THE PROURE. At least the indicative action plan for the development of the PROURE shall develop the following content:
a) It responds to a sectoral structure that allows specific objectives for the different sectors or consumers to be set and will contain a list of measures and instruments for their implementation in each of the identified sectors. This plan will establish programmes for the renewal of equipment for other high energy performance, which will be carried out on a regular basis in all final consumer sectors, defining the scope of these and attributing the responsibilities and powers for its implementation to the relevant departments or bodies of the National Government;
(b) It may provide, as a necessary support mechanism for the achievement of the proposed objectives, the subscription of voluntary agreements with the various stakeholders in the energy market. These agreements should incorporate measurable, verifiable and binding commitments in the implementation of measures to improve energy efficiency and demand response, and will be subject to control and reporting requirements. part of the control bodies. In order to ensure transparency, voluntary agreements shall be made available to the public and published prior to their implementation, in so far as the provisions relating to confidentiality permit.
ARTICLE 29. GOOD PRACTICES. The Ministry of Mines and Energy and its entities, with the collaboration of other Ministries and Territorial Entities, will facilitate and facilitate an exchange of knowledge on good efficiency practices. energy among public sector bodies, including criteria and considerations to be taken into account in public procurement processes, and will make available to all administrations the experiences of knowledge about good practice at international level.
ARTICLE 30. BUILDINGS BELONGING TO PUBLIC ADMINISTRATIONS. The National Government, and the other public administrations, will set energy efficiency targets for all public administration buildings, to be reached energy efficient management measures. Such objectives should be set as staggered goals to be achieved in fixed periods of time, with horizons of up to 10 years after their entry into force. For this purpose, each entity shall allocate the resources (budget) necessary to undertake the development of such energy efficient management measures.
ARTICLE 31. DEMAND RESPONSE. The Ministry of Mines and Energy will delegate to the CREG to establish regulatory mechanisms to encourage the response of demand in order to displace consumption at peak periods and to ensure the flattening of the demand curve, as well as to respond to reliability requirements established by the Ministry of Mines and Energy or by the same CREG.
ARTICLE 32. ENERGY EFFICIENT MANAGEMENT PLANS. The National Government, and the other public administrations, in the field of their respective competencies will adopt energy efficient management plans, which will include actions in efficiency energy and demand response mechanisms. The public authorities, in their territorial areas, shall adopt plans for the efficient management of energy and the use of FNCE for energy-consuming buildings and equipment of public ownership with similar objectives to that of the National Government.
ARTICLE 33. FINANCING OF THE INDICATIVE ACTION PLAN FOR THE DEVELOPMENT OF THE PROJECT AND OTHER ACTIONS RELATED TO THE DEMAND RESPONSE. The indicative action plan for the development of the PROURE will be adequately equipped with the financial resources necessary for the achievement of the objectives approved, either from taxes, allocation of items within the public budgets and/or through fiscal mechanisms that will enable energy efficiency activities to be stimulated and in support of the demand response, without exclusion from other possible financing mechanisms.
The government will ensure, in any case, that the approved funding for the indicative action plan for the development of PROURE and the actions to promote demand response is adequate and sufficient to achieve the objectives concrete content of this law.
OF THE DEVELOPMENT AND PROMOTION OF FNCE AND THE EFFICIENT MANAGEMENT OF ENERGY IN ZNI.
ARTICLE 34. HYBRID SOLUTIONS. The Ministry of Mines and Energy will promote the development of hybrid solutions that combine local sources of electrical generation with diesel sources and minimize the operating time of the diesel equipment in coherence. with the power service hours policy for the ZNI. To this end, support can be applied from the established financial funds as well as from the created by this law, according to criteria defined by the Ministry of Mines and Energy for this purpose.
PARAGRAFO. Priority will be given to projects that are incorporated into the Sustainable Rural Energy Plans at the departmental and/or regional level in order to incentivize the methodology developed for this purpose.
ARTICLE 35. LPG USE. When it is more efficient to use LPG for electric generation, in exchange for diesel oil, this fuel will receive the subsidy to be determined by the Ministry of Mines and Energy from the National Budget under similar conditions. of diesel.
ARTICLE 36. BUSINESS SCHEMES. The Ministry of Mines and Energy will allocate resources from the Fenoge Fund, created by this law, to grant soft loans for the structuring and implementation of business schemes, exclusively for the processes production and accompanying accompanying measures, at least for a period of two years. The Ministry of Mines and Energy will establish the criteria for opting for these resources.
ARTICLE 37. USE OF LOCAL SOURCES FOR THE PRODUCTION OF ENERGY OTHER THAN ELECTRICITY. The use of local energy sources, of a renewable nature mainly, to meet energy needs other than generation of electricity, will be supported. electricity. These solutions will have resources from the Fenoge Fund, created in this law, according to the criteria established by the Ministry of Mines and Energy.
ARTICLE 38. ENERGY EFFICIENCY AND DEMAND RESPONSE. Initiatives to improve the efficient management of energy in the ZNI will be supported. Your financing will be available from the Fenoge Fund, created in this law. Similarly, demand response schemes will be encouraged, as set out in Chapter V of this Act.
ARTICLE 39. INFORMATION, TECHNOLOGY TRANSFER AND TRAINING. Resources from the Fenoge Fund, created by this law, will be available for monitoring the solutions installed in the ZNI, as well as for technology transfer and training, which will ensure the continuous operation of the developed energy supply systems. The Ministry of Mines and Energy will establish the criteria for opting for these resources.
ARTICLE 40. INSTRUMENTS FOR THE FINANCING OF PROGRAMMES. 1 of Decree 142 of 2015. The new text is as follows: > With the objective of continuing the financing of plans, programs and projects prioritized investment for the construction of the new electrical infrastructure and for the replacement and rehabilitation of the existing one, with The purpose of extending coverage and to ensure the satisfaction of the energy demand in the Non-Interconnected Zones, the validity of Article 1or Law 1099 of 2006 is extended.
For each kilowatt-hour issued on the Wholesale Energy Exchange, the Administrator of the Commercial Exchange System (ASIC), will raise a peso ($1.00) currency, with a destination to the Financial Support Fund for the Energy of the Non-interconnected Zones (Fazni). This value will be paid by the power generating agents and will be effective until December 31, 2021 and will be indexed annually with the Producer Price Index (PPI), calculated by the Bank of the Republic. The Energy and Gas Regulatory Commission (CREG) will adopt the necessary adjustments to the current regulation to enforce this article.
EXEMPLARY ACTIONS OF THE NATIONAL GOVERNMENT AND PUBLIC ADMINISTRATION.
ARTICLE 41. EXEMPLARY ACTIONS. The National Government and the other public administrations, in the field of their respective competences, will adopt exemplary actions to eliminate technical, administrative and market barriers for the development of the FNCEs and the promotion of the efficient management of energy. In particular, the measures will aim to achieve energy saving and the introduction of FNCE in the various sectors, the establishment of minimum efficiency requirements for energy-consuming equipment, the awareness of the need for energy efficiency, and energy consumers for efficient use in improving efficiency in the production, transport and distribution of heat and electricity, as well as the development of energy technologies and for the energy efficiency of buildings. To this end, special attention will be given to the training of staff in the service of the Public Administrations, especially at the local and regional level, where the competent bodies for the processing and authorization of facilities.
SCIENCE AND TECHNOLOGY.
ARTICLE 42. PROMOTION OF RESEARCH IN THE FIELD OF FNCE AND EFFICIENT ENERGY MANAGEMENT.
1. Public administrations, each in the field of their competences, will promote the activities of scientific research, technological development and innovation of interest in the field of the FNCE and the efficient management of energy, enhancing the development and industrial innovation and collaboration between the various actors of the National System of Science, Technology and Innovation (SNCTI).
2. The promotion referred to in the previous paragraph shall be carried out within the reference framework constituting the successive National Development Plans. The Autonomous Corporations and local authorities, in the field of their respective competences, may adopt measures to promote innovation which, in the case of energy-related, shall include objectives related to ERNC and management. energy efficiency. Also, plans to promote research, development and investment by the National Government or innovation developed by the rest of public administrations, when they affect the scope of the FNCE or the efficient management of the energy, they must be part of the binding energy policy frameworks to be established in national plans or programmes.
3. The promotion plans referred to in the previous paragraph shall set out the concrete measures to be implemented for the promotion and support of the FNCEs and the efficient management of energy and the appropriate indicators for their implementation. monitoring.
4. Systems for the promotion of research, development and investment in the field of FNCE or energy efficient management shall be directed to:
a) Potentially research, development and investment in key areas to achieve high penetration of efficient and clean technologies, and the use of resources of renewable origin in the medium and long term;
b) Facilitate and maximize the penetration of FNCE into the national energy system, particularly as regards its contribution to the security of supply and stability of the system;
c) Driving the development of promising technologies that are in the demonstration and/or commercial phase;
d) Explore the potential in the medium and long term of clean technologies found in research and/or development phases;
e) Reduce the costs associated with the use of the FNCEs. To this end, these promotion systems should establish priority lines of action in specific technologies or fields.
5. Specific measures for the promotion of research, development and innovation in the field of the FNCE and the efficient management of energy may be of an economic, fiscal or fiscal nature, as well as a boost to cooperation and collaboration between the SNCTI agents. In the case of measures of an economic and financial nature, the support mechanisms shall model the sources of funding deemed necessary for the achievement of the objectives set out, differentiating between public funds and private funds.
6. The specific measures referred to in the previous paragraph, when approved by a Public Administration, shall be selected from among those more efficient alternatives in the objective relationship to be achieved/resources used.
7. The National Development Plans, as regards FNCE and energy efficient management, should take into account the results and experience acquired in previous plans, taking as a reference, among others, the indicators of monitoring referred to in Article 4or, reasoning for the choice of objectives, priorities and measures.
8. In any case, the policy of research, development and investment in the field of the FNCE and the efficient management of energy, when carried out by some public administration, should be inspired and integrated into the guidelines It is a matter of global energy policy, and more specifically in terms of the development of energy technologies.
