Colombia aims to accelerate the diversification of its energy matrix with a loan from the Inter-American Development Bank (IDB). Here is how.
The US$600M budget will contribute to the sustainability of the Colombian energy sector, through reforms that assure efficient supply in both the National Interconnected System (SIN) and the Non-Interconnected Zones (ZNI).
This, after authorities said they aim to use the ZNI’s to promote sources of unconventional renewable energy, El Nuevo Siglo reported.
“Sources of unconventional renewable energy have been growing steadily in the last decade, but they only represent 1% of Colombia’s energy matrix. We expect for the Bank’s financing to help increase their participation to 10% in 2022,” said IDB’s team leader, Alexandra Planas.
The program also includes policies and actions aimed at securing natural gas supply for the electricity sector, with the implementation of the current natural gas supply plan, which includes the construction of a regasification plant in the Pacific region, in addition to an associated gas pipeline.
The initiative will also seek to promote international electricity transactions, by advancing in the development of the regulatory and operational frameworks that help this type of operations with neighboring countries.
It also seeks to boost Colombia’s electricity coverage with new the implementation of technologies, the optimization of subsidies, by managing demand in a more efficient way, increasing the resilience of the electricity system to climate change, and by implementing gender and equity policies in the sector, Inteligenia Petrolera said.
Bottom-line: The government is serious about boosting the country’s energy transition process, and this news is proof of it.
Acquiring a loan from the IDB should keep authorities accountable of the projects they aim to implement, and adds to the country’s next reliability auction, to be held in July.