Regulation & Policy May 31, 2021 5:29 PM
Representatives of the government and energy sector discussed the challenges Colombia faces in terms of energy transition.
They agreed that hydrogen and Liquefied Natural Gas (LNG) will be vital to diversify the country’s energy matrix and thus mitigate climate change, La Republica reported.
Diego Mesa, Minister of Mines and Energy (MinEnergia), highlighted that the country has made progress in the sale of hybrid vehicles and in the deployment of low-emission fuels.
“We are working on other sources, and we have started to build the roadmap for green and blue hydrogen,” Mesa said.
Mesa said that the country’s wealth of thermal generation and minimal impact technologies can be combined.
Director of the Mining and Energy Planning Unit (UPME), Christian Jaramillo, acknowledged that it is necessary to prepare to make changes between now and 2030, when the reduction of CO2 emissions should be 51%.
“Decarbonization is not a 10-year path, it is a 30-year path. We can set intermediate goals, but it is a long road,” Jaramillo said.
Senator José David Name said that the mining-energy sector is the most important for public finances, so it is vital to encourage investment in this industry.
“I want to remind everyone that the whole of mining-energy in the country is almost 60% or 70% of the state’s cash flow. So, if we have clear laws to encourage and to monitor the environment, we give a clear message to investors,” Name said.
Andeg’s Alejandro Castañeda said that this year will be key for projects assigned in the past auctions.
The leader called on the government to coordinate regulatory development with the expansion needs of the national transmission system.
“We are willing and ready to participate in the discussions related to the sufficiency of generation in the medium term in the context of supply and reliability in the electricity supply, considering the current and future challenges,” Castañeda said.
The Vice Minister of Energy, Miguel Lotero, said that it is important that electric freight transport be integrated into the National Energy Plan and, thus, the mobility sector will be able to contribute to the fulfillment of decarbonization goals.
Bottom-Line: Authorities have the enormous challenge of creating a solid and attractive regulatory framework for investors.
Investors are aware of the country’s generation potential, but they need legal and, especially these days, social clarity.