Countries › Colombia › Guide › 12. Sectors › Renewable energy, self generation and hydrogen in Colombia: public utility status, selling surplus power, energy credits, green, blue and white hydrogen incentives and energy communities

Renewable energy, self generation and hydrogen in Colombia: public utility status, selling surplus power, energy credits, green, blue and white hydrogen incentives and energy communities

Last verified: 2026-10-27 · Status: Stable

Colombia declares non conventional energy, mainly renewables, a matter of public utility and social interest, which gives these projects priority in land use planning, administrative selection and expropriation, and lets them apply for national strategic project (PINES) status. Self generators of any size may deliver surplus power to the grid under CREG rules; small renewable self generators get bidirectional metering and tradable energy credits, and oil and gas producers may sell surplus power from gas fired plants in the wholesale market. Green and blue hydrogen get the same 50 percent investment deduction, VAT exclusion, duty exemption and accelerated depreciation as renewables after UPME certification, white (natural) hydrogen is treated as renewable, and users can form energy communities to generate and trade power.

Key facts

Maximum capacity of a small run of river hydro plant treated as non conventional renewable	50 MWLey 1715 de 2014 art. 5 num. 10 (Ley 2294 de 2023 art. 235), as of 2026-10-27 · in force
Income tax deduction for qualifying renewable and hydrogen investment, share of investment	50 %Ley 1715 de 2014 art. 11 (Ley 2099 de 2021 art. 8); Ley 2099 de 2021 art. 21 par. 2, as of 2026-10-27 · in force

The rule

1. Promoting the production, use, storage, administration, operation and maintenance of non conventional energy sources, mainly renewables, and efficient energy use, is declared of public utility and social interest and national convenience. This status gives these activities priority in land use planning, urban planning, environmental planning, economic promotion, positive weighting in competitive and selection procedures, and expropriation. The government regulates how such projects may be declared Proyectos de Interés Nacional y Estratégico (PINES).Ley 1715 de 2014, art. 4 as amended by Ley 2099 de 2021 art. 3, and art. 4-1 added by Ley 2099 de 2021 art. 4, Art. 4 and art. 4-1, 2021-07-10 official text · verified 2026-10-27 · changed: Ley 2099 de 2021 (Diario Oficial 51.731, 10 July 2021) rewrote art. 4 and added the PINES route in art. 4-1.

2. Self generation is producing electricity mainly for one's own needs; surpluses may be delivered to the grid on CREG terms. Self generators at small and large scale (the boundary is set by UPME) are authorized to deliver surpluses to distribution or transmission networks. Small scale renewable self generators have surpluses recognized as energy credits under bidirectional metering, may use low cost bidirectional meters and simplified connection, and may trade those credits with third parties. Distributed generators are paid taking into account the benefits they bring to the distribution system, such as avoided losses and reactive power support. Self generators owned by oil or natural gas producers may sell surpluses from gas fired plants in the wholesale market through authorized companies.Ley 1715 de 2014 art. 5 num. 1 to 3 and art. 8 lit. a to d, as amended by Ley 2099 de 2021 art. 6, Art. 5 num. 1 to 3; art. 8 lit. a, b, c and d, 2014-05-13 official text · verified 2026-10-27

3. The government defines mechanisms and incentives for producing, storing, distributing and using hydrogen for electricity, storage and decarbonization of transport, industry and hydrocarbons. Ley 1715 de 2014 applies in full to green and blue hydrogen, and investments, goods, equipment and machinery for their production, storage, conditioning, distribution, re electrification, research and end use enjoy the income tax deduction, VAT exclusion, import duty exemption and accelerated depreciation of Ley 1715 art. 11 to 14, subject to prior UPME certification. The FENOGE fund may finance or carry out green hydrogen projects.Ley 2099 de 2021, Art. 21 and par. 1 to 3, 2021-07-10 official text · verified 2026-10-27

4. Green hydrogen is hydrogen produced from non conventional renewable sources (biomass, small hydro, wind, geothermal, solar, tidal and others) and counts as a renewable source; it also includes hydrogen made with renewable self generated power plus grid power, as long as the renewable energy delivered to the grid equals or exceeds the energy taken from it. Blue hydrogen is produced from fossil fuels, especially methane, with carbon capture, use and storage, and counts as a non conventional source. White hydrogen, found naturally as free gas in geological settings, counts as a renewable source. Small hydro means run of river plants below 50 MW.Ley 1715 de 2014 art. 5 num. 10, 23, 24 and 26, as amended and added by Ley 2099 de 2021 art. 5 and Ley 2294 de 2023 art. 235, Art. 5 num. 10, 23, 24 and 26, 2023-05-19 official text · verified 2026-10-27 · changed: Ley 2294 de 2023 art. 235 (Diario Oficial 52.400, 19 May 2023) widened green hydrogen to include grid balanced production, set the small hydro limit at under 50 MW and added energy communities and white hydrogen.

5. Users or potential users of energy services may form Energy Communities, made up of individuals or companies, to generate, sell or efficiently use energy from non conventional renewable sources, renewable fuels and distributed energy resources. Communities of individuals and of indigenous, peasant, black, Afro Colombian, raizal and palenquero peoples may receive public funds for infrastructure, which may be transferred to them free of charge. The Ministry of Mines and Energy and UPME set capacity and other parameters, the CREG sets service conditions, and the Superintendencia de Servicios Públicos supervises them.Ley 1715 de 2014 art. 5 num. 25, added by Ley 2294 de 2023 art. 235, Art. 5 num. 25, 2023-05-19 official text · verified 2026-10-27

6. Investments in non conventional energy generation and efficient energy management qualify for a 50 percent income tax deduction over up to 15 years, VAT exclusion for listed goods and services, import duty exemption for equipment not produced locally and accelerated depreciation of up to 33.33 percent a year, each subject to UPME certification; the figures and worked example are on the sector overview page.Ley 1715 de 2014 as amended by Ley 2099 de 2021 art. 8 to 11, Art. 11, 12, 13 and 14, 2021-07-10 official text · verified 2026-10-27

Type	How it is produced	Legal treatment
Green	From non conventional renewables, or grid balanced with renewable self generation	Non conventional renewable source; Ley 1715 incentives with UPME certification
Blue	From fossil fuels, mainly methane, with carbon capture, use and storage	Non conventional source; Ley 1715 incentives with UPME certification
White	Natural hydrogen found as free gas in geological formations	Non conventional renewable source

Hydrogen colours in Colombian law (Ley 1715 de 2014 art. 5, as amended)

Step by step

Classify the project: utility scale generation, self generation (small or large scale per the UPME limit), distributed generation, hydrogen or an energy community.
Apply for UPME certification before claiming any tax benefit, including for hydrogen equipment.
For self generation, arrange the connection and surplus delivery under CREG rules and, at small scale, bidirectional metering to earn tradable energy credits.
Consider seeking PINES status for large projects to benefit from priority treatment in planning and procedures.
For green hydrogen using grid power, set up metering that proves renewable energy delivered to the grid at least equals energy drawn.

Common traps

Grid connected green hydrogen qualifies only if the balance of renewable energy exported versus energy imported is met and certified under the Ministry's procedure.
Small hydro is non conventional only if run of river and under 50 MW; larger or reservoir plants do not qualify for the definition.
Energy credits and surplus sales depend on CREG rules; the law authorizes them but the commercial terms come from regulation.

Sources

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