Analysis of legal regulation and investment procedure in the electric sub-sector of renewable energies in Nicaragua

Abstract

Nicaragua is a country characterized by diverse and abundant energy resources, which have a high potential for exploitation of renewable energy, whether hydro, geothermal, wind, solar or biomass energy. Therefore, the analysis of the regulatory and legal framework of the investment process, concerning renewable energy, shown as a necessary study to the economic, social and legal realities which are currently facing our country. The advantageous geographical position of Nicaragua, abundant natural resources owned, and lush need for investment in this sector make from this study an interesting reflection and contribution at least from a legal opinion. The development and encouragement by the state for energy generation from renewable sources is not only appropriate, but also necessary for the development of the sub national electricity sector being that projects the ideal partner for projects energy expansion and rural electrification that the Government of Nicaragua has been promoted by several years.  With Law No. 532, Law for the promotion of energy generation from renewable sources, came a kind of clean generation in the country, giving to investors tax benefits, but it is not enough. This paper presents an analysis of the legal regulatory framework in the renewable energy sector identifying opportunities to improve the development of sector.