Law No. 57-07 on Incentives for the Development of Renewable Energy Sources and their Special Regimes

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Law No. 57-07 on Incentives for the Development of Renewable Energy Sources and their Special Regimes: Regulation Decree 202-08

Law passed

The law was developed in recognition of the potential that renewable energy and fuels offer to boost development. It constitutes the main regulatory framework for a range of renewable energy production, from producing ethanol to the exploitation of tidal energy.<br>&nbsp;<br>&nbsp;The objectives of the Law include:</div><ul><li>To diversify energy supply</li><li>To reduce dependency on fossil fuel imports</li><li>To promote private investment</li><li>To mitigate the environmental impacts of fossil fuels</li><li>To contribute to decentralisation of power and biofuel production; and increase competition between providers</li></ul><div>&nbsp;<br>&nbsp;The Law sets out tax exemptions and incentives for investors in renewable energy production projects. This constitutes a 100% customs tax exemption and a 10 year income tax exemption. For self-producers (e.g. domestic) a credit of up to 75% on capital costs is provided against income tax. There are also provisions for community projects.<br>&nbsp;<br>&nbsp;This includes, but is not limited to, small hydro-electric installations with capacity of not more than 5MW; wind parks with capacity of not more than 50MW; and electric and solar installations of any type and power levels.<br>&nbsp;<br>&nbsp;There are special rules for production of bioethanol, biodiesel and any other synthetic renewable fuel. Specifically, the Law provides for a 10-year exemption on income tax, duties, contributions and any other taxed from the beginning of operations for companies.