Royalties and energy

Energy, Regulation & Policy    Sep 29, 2021 4:44 PM

Royalty resources are key to expanding energy and gas service coverage in Colombia.

OCAD Paz approved six projects to bring electric power service to the municipalities of Toluviejo (Sucre); El Guamo (Bolívar); Nóvita – Sipí (Chocó), Valencia (Córdoba), Valle del Guamuez and Puerto Caicedo (Putumayo), Valora Analitik reported.

“With an investment of more than CoP$42.7B from the General System of Royalties (SGR), New Energy will reach 1,993 families for the first time through solar photovoltaic solutions and the construction of networks of the National Interconnected System,” Vice Minister Miguel Lotero said.

Lotero said that these approvals are an example of how the coordinated work between the different levels of government translates into works that transform lives.

Since the origin of OCAD Paz, the departments with the largest investments in electricity projects approved are Cauca (CoP$176B), Nariño (CoP$207B) and Putumayo (CoP$182B), which corresponds to 41% of the approved allocations (CoP$565B).

OCAD Paz has approved 150 energy and gas projects since 2018. Of these, 129 projects have been approved for the expansion of coverage in energy service, with an investment of CoP$1.3T, benefiting nearly 67,000 families in rural areas of 19 departments of the country.

In addition, the entity prioritized and approved six investment projects financed with resources from the Production Incentive in the municipalities of Puerto Caicedo (Putumayo), Cotorra and Chinú (Córdoba), Tumaco (Nariño), Puerto Nare (Antioquia) and Purificación (Tolima).

The projects approved for the municipalities of Cotorra and Chinú correspond to works for the expansion of domestic fuel gas coverage, benefiting 694 families.

Bottom-Line: This news is a clear example of the extractive sector relevance to promote the inclusion of new energy sources in the country. Royalty resources are helping to accelerate the energy transition, benefiting thousands of Colombians with energy service.

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