Energy: Law Reformed in Nicaragua

After the National Assembly modified the Law for the Promotion of Electricity Generation with Renewable Sources and its reforms, clean energy generators will be able to negotiate the lowering of current prices and in exchange they will receive five additional years of tax exemption.

Wednesday, September 9, 2020

The initiative, urgently submitted by President Daniel Ortega, exposes the voluntary negotiation process being carried out with electricity generators from renewable sources for the benefit of the Nicaraguan population and the country's economic sectors, the National Assembly reported.

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The incentive offered to renewable energy generators to negotiate downward the current prices, consists of granting five additional years of exemption from the payment of Income Tax (IR) and the final minimum IR payment.

For Representative Walmaro Gutierrez, president of the Production, Economy and Budget Commission, this reform will allow "... a significant reduction in the rate of electric energy, which is a demand of all sectors of the country and will have a significant impact on the pockets of Nicaraguans, as well as on industry, commerce, and the agricultural sector, among others." reviews that "... the reform motivates clean energy generators to voluntarily negotiate at current prices Power Purchase Agreements (PPAs), so that the new agreed prices do not exceed the ceiling of 6.5 cents per kWh."

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