The development of different forms of renewable energy is an important part of the government's strategy to diversify sources of energy.
Important laws regarding energy policy:
ACT 19.940 of 2004 (Ley Corta I) & ACT 20.018 of 2005 (Ley Corta II) establish the following:
- Guarantee any power company based on renewable energy the right to sell energy in the market at spot price.
- Non-discriminatory conditions for small power companies (less than 9 MW) that participate in that market, allowing them simplified treatment for trade (price stabilization).
- Guaranteed access to distribution systems, for small power companies (less than 9MW).
- Total or partial exemption from main transmission tolls for non-conventional sources less than 20MW.
Act 20.257 of 2008 (Renewable Energy Act) establishes the following:
- 5% of the energy sold by companies will come from renewable sources (NCRE), from 2010.
- This figure will increase gradually to 10% by 2024.
- Companies will pay a surcharge for every MW which does not meet these targets at a rate of 0.4 UTM/MW.
- Fines for repeated violations within a three year period.
- These fines will benefit consumers whose power supply comes from companies that comply with the regulations.