General Law for Rural Electrification (Ley general de electrificación rural)

The legal framework for rural electrification is provided by the General Law for Rural Electrification (Law 28749 of 2006) regulated by Decree 025 of 2007, and after that modified by Decree 011 of 2008, Decree 089 of 2009, and Decree 042 of 2011.

The law mandates the priority use of renewable energy resources in rural electrification projects. It provides a mechanism of exclusive rural concessions which can be allocated through auctions or direct contract.

In addition, the Law 28749 of 2006 provides that funding sources for rural electrification include 100% of sanctions imposed to electricity generators, a levy of USD 2/MWh and up to 25% of resources obtained from privatization of public enterprises in the electricity sector.

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