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dc.contributor.authorLopez Lezama, Jesus Maria
dc.contributor.authorVillada, Fernando
dc.contributor.authorMuñoz Galeano, Nicolas
dc.descriptionRenewable 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 work also establishes a methodology to include the effects of tax incentives in the calculation of the Levelized Cost Of Electricity (LCOE). The results show up to 20% reduction in the LCOE; unfortunately, the regulation restricts small or new business to apply for all incentives. For this reason, two complementary mechanisms (granting five years as grace period for loan repayment and lower discount rate as subsidy from the government) are proposed in order to allow small business ventures such as forest biomass projects apply to incentives. As a result, 30% reduction in the LCOE is obtained for photovoltaics (PV) and 15% for forest biomass; being the last one a great opportunity in Colombia because of the huge amount of biomass resources and its potential to create new job opportunities. en-US
dc.publisherPontificia Universidad Javerianaen-US
dc.rightsCopyright (c) 2017 Jesus Maria Lopez Lezama, Fernando Villada, Nicolas Muñoz Galeanoen-US
dc.sourceIngenieria y Universidad; Vol 21 No 2 (2017): July-December; 256en-US
dc.sourceIngenieria y Universidad; Vol. 21 Núm. 2 (2017): Julio-Dicciembre; 256es-ES
dc.titleEffects of Incentives for Renewable Energy in Colombiaen-US
dc.typePeer-reviewed Article

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  • Ingeniería y Universidad [284]
    Ingeniería y Universidad - Engineering for development covers research focusing on sustainable human development. Targetted manuscripts consider Humans as final recipients of engineering research activity. This activity comes from any engineering field that provides solutions aimed at improving the quality of life by reducing risks, introducing new sustainable materials, more efficient use of natural resources, satisfying energy and food demands, increasing industry competitiveness and designing new safe jobs for human beings. Contributions with global relevance with potential of local application considering social, ethical, cultural, economic, environmental aspects are especially welcomed.

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