BTN News: Environmental licensing processes have increasingly become a significant bottleneck for developing energy and hydrocarbon projects in the country, according to numerous companies and industry experts. This issue has been brought to light repeatedly in various forums, with many stakeholders expressing frustration over the delays and rejections that seem to plague the approval process. Germán Castro, the Deputy Comptroller for Mines and Energy, highlighted this concern, stating that environmental licensing is “perhaps the most recurrent vulnerability for energy projects.” Castro pointed out that licenses and projects are often denied or rejected without sufficient consideration for the citizens who ultimately depend on these developments. Despite this criticism, the National Environmental Licensing Authority (Anla) asserts that it has been diligent in responding to all licensing requests within the legal timeframes, particularly for unconventional renewable energy projects.
For Anla, supporting the country’s energy transition is of utmost importance. The agency has emphasized that the transition to renewable energy is not just a priority but a necessity for both the country and the planet. Luis Enrique Orduz, Anla’s Deputy Director of Procedures and Permits, noted the considerable effort made by the authority to expedite the approval of 23 licenses for renewable energy projects, which also include transmission lines. This commitment to renewable energy is evident in Anla’s handling of licensing applications, with a reported 100 percent response rate for these types of projects.
However, the challenges associated with environmental licensing are more complex when it comes to conventional energy projects—such as hydroelectric or thermal power plants—as well as infrastructure, mining, hydrocarbons, and agrochemicals. For these sectors, Anla reports a 99 percent compliance rate in responding to licensing requests. According to Decree 1076 of 2015, Anla has 90 business days to issue a decision on new project licensing applications and 60 business days to process modifications for existing projects. Nonetheless, these timelines can be extended due to factors beyond Anla’s control.
Several reasons can contribute to delays in the environmental licensing process. For instance, requests for additional information from the companies involved can extend the process by up to two months. Additionally, compliance with judicial orders, such as the requirement to conduct prior consultations or hold public environmental hearings, can also cause significant delays. Over the past year, Anla has processed 491 requests for the evaluation of new environmental licenses and modifications, approving 83 percent of these applications. This resulted in the issuance of 39 new licenses, approval of 22 modifications, and resolution of 348 additional administrative processes across various sectors. The remaining applications were addressed through administrative decisions.
It’s important to note that some environmental licensing requests, depending on the project’s size, impact, or geographical scope, fall under the jurisdiction of the Regional Autonomous Corporations (CARs). These entities operate autonomously, and Anla has no influence over their decisions. Currently, Anla is responsible for licensing studies for power generation projects with an installed capacity of more than 100 megawatts. Smaller projects must be processed by the regional CARs.
In summary, while Anla has demonstrated a commitment to processing environmental licenses within the stipulated timeframes, particularly for renewable energy projects, the overall licensing process remains complex and sometimes prolonged due to various external factors. This complexity underscores the ongoing tension between the need for environmental protection and the demand for timely infrastructure and energy development, a balancing act that continues to challenge both regulators and developers in the country.
