Certified projects qualify for deductions up to 50 percent of total investment against taxable income over a 15-year period. Additional benefits include VAT exclusion on machinery, equipment, services and supplies required for project development, plus tariff exemptions on imported technology and accelerated depreciation on specified assets. The fiscal framework extends incentives previously available only for renewable energy generation from sources including solar and wind power.
The current administration has processed 16,943 applications for clean energy tax incentive certificates since taking office, according to Ministry of Mines and Energy data from December 2025. Favorably certified requests in 2025 alone represented authorized investments totaling 6.56 trillion pesos. UPME maintains evaluation timeframes of 10 business days for documentation verification, 20 days for non-conventional energy source projects, and 30 business days for energy efficiency and hydrogen initiatives.
White hydrogen represents naturally occurring subsurface deposits extractable without complex industrial processing, distinguishing it from manufactured hydrogen varieties. Green hydrogen production relies on electrolysis powered by renewable energy, while blue hydrogen combines natural gas reforming with carbon capture technology. Both manufactured types target emissions reduction in industrial sectors and heavy transport applications.
The regulatory foundation stems from Laws 1715 of 2014 and 2099 of 2021, with Decree 895 of May 2022 specifically incorporating hydrogen projects into the existing renewable energy incentive structure. Colombia has awarded renewable energy projects totaling more than 2,800 megawatts since 2018, representing a hundredfold increase in non-conventional generation capacity. Ecopetrol and Promigas inaugurated pilot green hydrogen facilities in Cartagena, with Ecopetrol’s 52.2-kilowatt electrolyzer at the Cartagena refinery testing hydrogen production integration into refinery operations. Application cycles close at year-end, with the next cycle opening February 15, 2026.
This article was curated and published as part of our South American energy market coverage.
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