Level of energy inefficiency

Regulation & Policy    Nov 15, 2021 6:31 PM

The Mining and Energy Planning Unit (Upme) published the sectors with the highest level of energy inefficiency.

Transport and industry, the sectors with the highest level of energy inefficiency in Colombia, La Republica reported.

Between the two sectors, there is a potential savings equivalent to CoP$4.8B in terms of energy waste and misuse.

The transport sector accounts for 43% of total energy consumption, but has energy inefficiency levels of up to 69% and only 25% of useful energy on average.

“The adoption of efficient technologies represents a potential savings of US$3.4B per year in transportation,” Lina Escobar Rangel, Deputy Director of Demand at UPME, added.

Useful energy is only 31% in Colombia, generating an inefficiency in overall consumption of 67%.

Escobar said that these inefficiencies can cost the country around US$11B, so it is important to use new technologies to reduce consumption by up to 62% without affecting production levels.

Andesco’s Camilo Sanchez said that the challenges in energy efficiency are, first, in the technological appropriation and efficient energy use goals by the different sectors of the economy.

The expert of the Energy and Gas Regulatory Commission (CREG), Germán Castro, recalled that resolutions 135 and 171 of 2021, deepen in the differentiated metering for electric mobility and in the rights and obligations of self-generating users.

“The study on how the Independent Information Manager will be materialized will be known soon and will be available for comments for all the agents in the chain,” Castro said.

Bottom-Line: The levels of energy inefficiency in the country are enormous, but Colombians do not switch to new technologies due to the high cost this represents.

Ah, and with a devalued peso, plus few incentives, plus high taxes the decision to make these changes gets complicated.

Three days a year without VAT are not enough to encourage Colombians to change their vehicles or electronic devices…

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