Law 57-07 has four main objectives:(a) to increase the diversity of energy sources;(b) reduce dependence on imported fossil fuels;(c) stimulate private investment in renewable energy;(d) ensure that private investments comply with rules and regulations;(e) mitigate the negative environmental impacts of fossil fuel generation;(f) promote social community investment in renewable energy projects;(g) contribute to decentralization of power and biofuel production to increase the market competition and(h) contribute to the achievement of goals of the National Energetic Plan, especially those related to renewable energy. The renewable energy projects covered by the scope of this law include: a) Wind less than 50 MW;b) Small and micro-hydro less than 5 MW;c) Solar installations (photovoltaic) of any size;d) Electric plants using, biomass as the main fuel source, at power capacity less than 80 MW;f) Biofuel plants (distilleries or biorefineries) of any production volume;g) Energy farms, plantations or agroindustrial infrastructures of any kind destined for production of biomass for energy generation;h) Installations for the exploitation of ocean energy;i) Solar thermal for water heating or space cooling.The above projects, upon compliance with certain project-specific regulatory procedures, can qualify for the following concessions and incentives: 1. Exemption from import duties on necessary renewable energy equipment.2. Exemption from value-added tax for certain equipment expressly listed in the law.3. Exemption from income tax for up to ten years until the year 2020. If the income comes from selling or installing renewable energy systems, parts, and equipment specified under the law, 35% local content is necessary.4. A 5% tax reduction on interest on foreign ficing of RE projects.5. A single tax credit of up to 75% (depending upon the energy technology) on the cost of capital equipment used in renewable energy projects.6. Small-scale renewable energy projects destined for community use, up to 500 kW, can apply for ficing at lowest market rates, for 75% of the total cost.