In this work; five basic elements for the formulation of a policy on renewable energy sources for Colombia, are discussed. A balance of the institutions of the energy sector related to the formulation, elaboration and execution of plans, programs and projects on renewable energy sources is carried out. The technology costs that take advantage of such sources are compared and the 967 Law issued in 2001 and its regulatory decree are analyzed. This law promotes the efficient and rational use of energy and also promotes the alternative energies. (c) 2005 Elsevier Ltd. All rights reserved.