Wednesday, September 30, 2015

El Salvador: Government to Boost Renewables With Tax Benefits

El Salvador to expand tax incentives for renewables (SeeNews Renewables)

El Salvador's government has proposed legal changes to extend tax incentives to larger renewable energy projects and the expansion of existing plants.

A draft decree was presented to the parliament on Tuesday by economy minister Tharsis Lopez, chairman of the National Energy Council.

The list of energy sources and technologies under the renewable energy law will be extended to include new technology developments, while the expansion of existing plants will become eligible for incentives which would stimulate additional investments. Another objective, according to the economy ministry, is removing the current limit of 10 MW while maintaining stronger support for the small projects via longer-term tax exemptions.

The reform is expected to encourage investments in hydro, geothermal, wind, solar, marine, biogas and biomass power, as well as any new energy source in the future, the ministry said.

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