Renewable Energy
Due to the recent worldwide oil price drop crisis, foreign direct investment in related services has declined significantly. Other energy-related investment opportunities are arising.
The price of energy in Colombia is highly dependent on weather conditions, there is an opportunity for reducing price volatility by increasing non-conventional energy supply.
Market energy prices vs. aggregated water reservoirs in Colombia

The source energy supply portfolio in Colombia is poorly diversified, there is a current necessity for other sources of energy.
Energy generation by source – Colombia

Applicable Regulation
142 Act and 143 Act of 1994
- Applicable regulation for energy generation and commercialization.
1715 Act of 2014
- Renewable energy integration into the National Energy System.
2143 Act of 2015
- The explanation and application requirements in order to access incentives created by chapter III 1715 act of 2014.
Tax Benefits – Income Tax Deduction
Any production and efficient use of renewable energy sources. Capex and R&D.
Requirements:
- Renewable energy, new investments, new projects and efficient use of energy approved by UPME.
- Previous approval of the environmental benefit certificate by the Ministry of Environment – ANLA.
Tax Benefits – VAT Exemption
For new investments and pre-investment for production and efficient use of renewable energy. Destined for evaluation and measurement of potential resources.
Requirements:
- Goods and services must be included in the UPME 045 resolution of February 4th, 2016.
- Previous approval of the environmental benefit certificate by the Ministry of Environment – ANLA.
- Renewable energy new investments, new projects and efficient use of energy approved by UPME.
Tax Benefits – Tariff Exception
Imports of resources related to machinery, equipment, materials, and supplies used exclusively for pre-investment and new investment of renewable energy activities.
For new investments and pre-investment for production and efficient use of renewable energy.
Destined for evaluation and measurement of potential resources.
Requirements:
- Previous approval of the environmental benefit certificate by the Ministry of Environment – ANLA.
- Renewable energy new investments, new projects and efficient use of energy approved by UPME.
- Send to the one-stop trade office (VUCE) – the request for prior license appending both certificates.
- Tariff exemption must be requested to DIAN in a minimum of 15 days before the import is done.
- Goods and services must be included in the UPME 045 resolution of February 4th, 2016.
Tax Benefits – Accelerated Depreciation
Applicable for machinery, equipment, and construction necessary for pre-investment, investment, and operation of the renewable energy generation activity.
Requirements:
- Previous approval of the environmental benefit certificate by the Ministry of Environment – ANLA.
- Renewable energy new investments, new projects and efficient use of energy approved by UPME.
- Hold a position of energy supplier using renewable sources with new investments being made after approval of the 1715 Act of 2014.
Opportunity Understanding
- The regulatory framework for the development of renewable energy sources in Colombia is ready.
- The national government is committed to adopting serious action in order to suppress entry barriers to the production of renewable energy (part 41 of 1715 Act).
- New renewable energy supply is an important alternative for the energy challenges Colombia is facing now.
- Renewable energy production is a great opportunity for Colombia’s economic development in matters of investment, employment, new technology, and research production.
Recently, Bogota has positioned itself as an important hub for the energy sector in Latin-America, thanks to the growing production activity in the O&G sector since 2003. The abundance of hydroelectric potential and the recent institutions regulating unconventional energy distribution in Colombia have created an attractive business environment.
Why you should locate in Bogota?
- Top energy players like Enel are rapidly arriving at the scene.
- Strong economic performance, stable policies, and significant institutional support for the energy sector have generated a favorable environment for new investors.
- Bogota has a skilled and experienced workforce for this industry, concentrating 39% of graduates in careers related to the business.
- The cost-benefit ratio with regard to salaries and infrastructure is one of the most competitive in the region.
- Bogota has positioned itself as a regional hub for northern South America, Central America, and the Caribbean for investing in the energy sector serving all the regions.
Related links:
Asociación Colombiana de Ingenieros de Petróleos
Ministerio de Minas y Energías
Agencia Nacional de Hidrocarburos
If you need more detailed information, find in the lower part the information of our investment officers in charge of this sector.
Updated (mm/dd/yyyy): 21.01.2020
Contact an advisor
Contact Invest in Bogotá to receive all the information and advice you need to invest in Bogota and Colombia.

Carlos Sánchez Badillo
Senior Investment Officer
csanchez@investinbogota.org

Juan Felipe Gómez
Investment Officer
jgomez@investinbogota.org
Need more information?
Contact Invest in Bogota to receive all the information and advice you need to invest in Bogota and Colombia.