Law 1002 of 2008 identifies the development of electricity from renewable enrgy sources as a public necessity of national interest, and designates the Ministry of Mines and Energy to be responsible for the design of the national renewable energy policy. In so doing, the Ministry is to establish a National Renewable Energy Development Plan to be funded by the Annual Budget Law, external debt operations, direct investments and contributions allocated by international institutions.
In addition, the Ministry will design Renewable Energy Deployment Plans every five years and set up generation targets for electricity from renewable sources.
The 2008-2013 plan targets that 5% of the total power demand will come from renewable sources by 2013, excluding hydro plants over 20 MW.
The legislation provides renewable electricity producers connected to the grid with a guaranteed distribution and transmission priority access, and a steady price over a twenty-year period. To sell all or part of their electricity production, individual producers will interact on the short-term market and sell it at market price. They will then receive a premium fixed on a project-by-project basis by the Superior Organism of Energy and Mines Investment (ODSINERGMIN).