Introduction: This paper studies the potential effects of a new regulation to promote the
development of renewable energy technologies in Colombia. Methods: This work
establishes a methodology to include the effects of tax incentives in the calculation of the
Levelized Cost of Electricity (LCOE). Two incentives are analyzed: tax deductions on the
investment and accelerated depreciation on assets. Results: The first calculation shows up
to 20% reduction in the LCOE; unfortunately, the regulation restricts small or new business …

Renewable energy is becoming very important as a way to mitigate climate change and
promote job creation. Colombia is not excluded from this reality, being a country with huge
renewable resources and the challenge to give employment to thousands or rebels, signing
the peace process. This paper studies the potential effects of the new regulation to promote
the development of renewable energy technologies in Colombia. Two incentives are
analyzed: tax deductions on the investment and accelerated depreciation on assets. The …