Paper Title
Regionalized Discount Rate To Evaluate Renewable Energy Projects In Colombia

The estimation of the discount rate for electricity generation projects using renewable resources, and differentiated by regions, is proposed in this paper. It requires estimating a risk parameter for each region, in this case for each state of the country, which would have the immediate effect of directly regionalizing the discount rate for these technologies. In regional risk measurement, variables associated with the risk of corruption and violence in each state were considered. Results suggest that states of Antioquia and Valle del Cauca are the regions with the highest risk of violence. Consequently, higher returns should be demanded by the investors. Keywords - Electricity Generation, Renewable Energy Resources, Discount Rates, Country Risk, Regional Risk.