Judicial and Tax Instability Threaten Energy Transition
Energy attorney Claro Manuel Cotes was cited in an article published by El Tiempo analyzing the effects of judicial and fiscal instability on Colombia's energy transition. The tax reform increases to 15 percent the minimum tax rate for unconventional renewable energy companies, and the country's National Development Plan (PND) increases the electric transfers that wind and solar parks should pay. Mr. Cotes pointed out that this increase in the percentage of transfers could disincentivize the development of renewable energy iniciatives. He also highlighted that it is important for Colombia to maintain a favorable perception in terms of judicial and macroeconomic stability to attract investment.
"There should be clear rules of judicial and fiscal stability that allow not only to promote but also to maintain signed agreements in the development of renewable energy projects," he said.