Positive expectations for the energy sector

Energy, Regulation & Policy, Renewables    Jan 19, 2021 9:20 PM

The global perception is that investment for green energies in Latin America is slowing down, but it seems like Colombia shows a positive outlook for the coming years.

The Ministry of Mines and Energy (MinEnergia) has prioritized renewable energy projects that commit investments of more than CoP$8T for the next two years, El Espectador said.

These resources will help the economy to recover and strengthen the Colombian energy matrix, according to the entity.

The expected growth of green energies will be exponential for the next two years, including the coming renewables auction for the industrial and commercial sector that will get the country to 2,500MW of installed capacity.

“Colombia has an important capacity in the reception of solar radiation, by light hour, which will allow the country to be an energy leader in the next decade,” Nexan Vice President, Luis Ernesto Silva, said.

MinEnergia, Diego Mesa, said that the government will announce the roadmap and new regulations to include alternative sources such as green hydrogen to the energy matrix in 2021.

“Green hydrogen will be a fundamental axis for mobility and energy storage, added to the development of new geothermal projects, it will allow us to continue complementing the energy matrix with clean and renewable sources,” Mesa said.

The entity expects the country to have 2,800MW of installed renewable energy capacity in 2022 and this figure could increase to 5,000MW in 2025, representing between 12% and 20% of the country’s installed capacity.

MinEnergia expects that an additional 800MW of installed capacity enter into operation this year.

Acolgén’s, Natalia Gutiérrez, said that 2021 will bring important challenges in different aspects for the energy sector in Colombia.

Bottom-Line: Colombia is experiencing a boom in renewable energy projects, thanks to government actions in recent years.

Authorities must follow this path to see a diversified energy matrix with a good share of renewable energies in the medium term.

But all this investment will go for naught if more mature, cheaper sources of power crowd out new technologies.

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