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Bill to promote private initiative in the renewable energy transition

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On September 30, 2024, the President of the Republic submitted the ” Law to Promote Private Initiative in the Renewable Energy Transition” bill (the “Bill”) to the Legislature. It is classified as urgent in economic matters and must be processed within 30 calendar days.

Below are the key points of the Bill:

  • The State will establish specific incentives for private investment projects in electricity generation using non-conventional renewable sources (e.g., solar, wind, geothermal, biomass, tidal, and small-scale hydroelectric). The Bill does not specify these incentives.
  • Electric distribution and commercialization companies can enter into long-term Power Purchase Agreements (PPA) with private generators, backed by State guarantees or trusts.
  • For priority projects outlined in the Master Electricity Plan (“PME”), the Ministry of Energy (“MEM”) will conduct public selection processes.
  • Private projects not included in the PME and under 100MW may be developed with prior MEM authorization. Private projects over 100MW will require public selection for delegation.
  • The State may grant special incentives to private investors for projects with a high-capacity factor and based on non-conventional renewable energy. The Bill does not specify these incentives.
  • Approval from the Ministry of Finance is necessary to provide incentives, such as exemptions, tax privileges, or state obligations that are not budgeted and affect the General State Budget.
  • Thermoelectric generators must present transition plans to clean technologies, including natural gas use, and develop hybrid projects combining thermal and renewable energy. The State will facilitate the granting of licenses for natural gas imports.
  • Private projects with a 10 MW limit, either in the permitting phase or in operation, may request permit reviews or power adjustments, respectively, to comply with the new limits of the Bill.

 

Carlos Torres, Senior Associate at CorralRosales
ctorres@corralrosales.com
+593 2 2567676

Mario Fernández, Associate at CorralRosales
mfernandez@corralrosales.com
+593 2 2544144

 

© CORRALROSALES 2024
DISCLAIMER: The previous text has been prepared for informational purposes. CorralRosales is not responsible for any loss or damage caused as a result of having acted or stopped acting based on the information contained in this document. Any additional determined situation requires the specific opinion and concept of the firm.

CORRALROSALES

0% VAT rate for electric generators

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By means of Executive Decree No. 411, issued on October 3, 2024, and published in the Fourth Supplement of Official Gazette No. 658 on October 4, 2024, the President of the Republic reformed -for the purposes of VAT- the definition of “electric energy,” including the import and local sale of electric generators in all their forms and ranges, as well as their parts and components. As a result, the import and sale of electric generators will be subject to a 0% VAT rate.

According to Article 11 of the Tax Code, this reform should apply starting from November 1, 2024. However, the Executive Decree mandates that the reform be implemented immediately.

 

Andrea-Moya-abogados-ecuadorAndrea Moya, Partner at CorralRosales
amoya@corralrosales.com
+593 2 2544144

© CORRALROSALES 2024
NOTE: The above text has been prepared for informational purposes. CorralRosales is not responsible for any loss or damage caused by actions taken or not taken based on the information contained in this document. Any specific situation requires the specific opinion and advice of the firm.

CORRALROSALES

Report Task Force on Legal Representation of American States in Investment Arbitration

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DETAILS

DATE: 10-02-2024

PROFESSIONALS INVOLVED IN THE ARTICLE:

–Hugo García Larriva

MEDIA:

– Institute for TRANSNATIONAL ARBITRATION

Report “Task Force on Legal Representation of American States in Investment Arbitration,” developed as part of the Americas Initiative by the Institute for Transnational Arbitration (ITA).

This project sheds light on how the legal representation of American States is structured and managed in investment arbitration. It highlights current practices, recruitment processes, and key priorities, offering valuable guidance to law firms seeking to represent States in these complex disputes.

Download the article here.

Amendments to the Household Goods and Work Equipment Customs Regime.

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Resolution No. SENAE-SENAE-2024-0083-RE issued by the Customs Authority (SENAE) on July 31, 2024, amended the regulations for the import of goods under the exception regime for household goods and work equipment.

The most important points include:

  1. Eligible goods

The list of new or used household articles that are eligible for import under the household effects regime was updated:

 

Household goods Eligible quantity Bedroom set One per household member plus an additional set. Dining set One per household. Living groom set and its accessories One per household member plus an additional backyard furniture set. Kitchen Stove  

 

 

 

 

One per household. The quantity may increase depending on the goods.

 

 

 

 

 

 

  Refrigerator / freezer / wine cooler Microwave Oven or similar Dishwasher Range hood Kitchen Cabinet Grill or similar Water dispenser Water purifying filters Washing machine Clothes dryer Projector Home theater system Speaker or audio system Electric doorbell (intercom)  

 

One per household. The quantity may increase depending on the goods. Baby monitor intercom Home surveillance system Lawn mower or weed trimmer Vacuum cleaner Floor polisher for home usage Garbage disposal unit Audio or video recorder  

 

 

 

 

 

One per household. Video player Video game console Gym machines Bicycle Video recorder Camera Television Landline phone Desktop computer Computer peripheral Printer Fireplace, outdoor heater or heater Air conditioner unit Alcoholic beverages Up to 50 liters in total and 2 liters for each commercial brand. Clothing, footwear, and accessories Up to 200 kilograms for each household member. Vehicle (only for Ecuadorian returning migrants) Its value can’t exceed 80 times the minimum wage (US$36,800) Motorbike (only for Ecuadorian returning migrants) Its value can’t exceed 25 times the minimum wage (US$11,500).

Goods not included in the list will be eligible as long as they are used for personal purposes and not for commercial purposes.

  1. Study trip

Ecuadorian citizens who have left the country for educational purposes can only import one motorcycle into the country. These types of migrants are not allowed to import vehicles unless they have resided abroad after ending their studies.

  1. Articles restricted under work equipment regime.

The following items are added to the list of articles that are restricted to be imported as work equipment: raw materials, supplies, textiles, footwear, weapons, explosives, flares, fireworks, and any other items subject to Armed Forces regulations.

  1. Late arrival

If a household member arrives in the country 6 months after the date of acceptance of the customs import declaration, the customs authority will determine the difference to be paid for foreign trade taxes.

  1. Penalties

If the imported goods are not properly identified or do not match with the data registered in the list of goods subject to the exception regime, the returning migrant or foreigner will be subject to the payment of a fine of 50% of the minimum wage (US$ 230,00 for fiscal year 2024), according to the article 193 of the Customs Regulation Law.

The full text is available on the following link:

https://www.aduana.gob.ec/gacnorm/data/2024/08/01/11/SENAE-SENAE-2024-0083-RE.pdf

© CORRALROSALES 2024
NOTE: The above text has been prepared for informational purposes. CorralRosales is not responsible for any loss or damage caused by actions taken or not taken based on the information contained in this document. Any specific situation requires the specific opinion and advice of the firm.

CORRALROSALES

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