Public Policy on efficient management and surpluses of small scale self-generation (Decree 348 of 2017)

March 1st, 2017, the Colombian Ministry of Mining and Energy (MINMINAS) issued the Decree 348 of 2017, as an amendment to Decree 1073 of 2015, in respect to the public policy guidelines upon efficient energy management and delivery of energy surpluses from small-scale self-generation. 

The Decree sets forth the public policy grounds regarding energy efficiency-related management, as well as the delivery of energy surpluses from small-scale self-generators, to the Regional Transmission System, or to the Local Distribution System.

Regarding public policy related to small-scale self-generation, the Decree addresses the criteria for the recognition of a self-generator, provided that the generated power satisfies its own demand. 

The Decree sets out that the number of energy surpluses of the small-scale self-generator may be equivalent to any percentage of the value of its own demand. Moreover, the Decree indicates that the Mining and Energy Planning Unit (UPME) will set the maximum installed power limits that will serve to technically identify these sorts of players within the market. 

In addition, the Decree establishes that small-scale self-generators with an installed capacity that is under or equal to 0.1 MW (100 kW) are exempted of executing a backup contract, and points out that UPME will define the terms and conditions to report the installed capacity and the power generation of small or large scale self-generators. 

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