Energy Jul 2, 2021 3:40 PM
Colombia continues to move forward in the process of energy transition and strengthening energy generation with unconventional renewable sources.
SER Colombia’s Germán Corredor said that the upcoming auction will strength the Colombian energy sector, confirming a reliable energy matrix, El Heraldo reported.
Projects that win allocations in this auction must begin to fulfill their supply obligations as of January 1, 2023, for a period of 15 years.
“The new auction is undoubtedly an effective tool for economic reactivation and for strengthening the energy matrix,” Corredor highlighted.
The expert explained that these projects will generate quality employment, low difficulty and rapid development.
In addition, the Minister of Mines and Energy (MinEnergia) highlighted that the Energy Transformation Law will strengthen the sector’s regulations.
The project strengthens the role of the Unconventional Energy and Efficient Energy Management Fund (Fenoge) to have more resources for investment, facilitates incentives and provides a framework for new developments.
“This law aims to consolidate the energy transition, lead the fight against climate change and accelerate the closing of gaps, offering better tax incentives for the generation of unconventional renewable sources, energy efficiency and sustainable mobility,” Mesa said.
Bottom-Line: Colombia has great potential for wind and solar generation, especially in the Caribbean region. Authorities have made progress in legal and regulatory issues to boost the development of this important sector.
However, there is still a pending issue, social conflict, which is generating problems in the development of several projects.