How does Colombia ensure security of electricity supply?

The main mechanism to ensure security of electricity supply is Colombia’s reliability charge, which has also seen increasing participation from renewable energy capacity since 2019. The scarcity pricing formula was reformed in 2015/16 and today reflects the cost of the oldest diesel generator.

Does Colombia have a coal policy?

From 2019 to 2021, domestic energy supply of coal decreased by 36% and the use of coal for electricity generation fell by 45%. Coal resources belong to the state and their exploitation is controlled by the MME. Colombia’s energy and climate policy strategies do not include specific phase-out targets for coal production or consumption.

Are gas security policies becoming a major priority for Colombia?

Gas security policies are becoming a major priority for Colombia. Notes: Demand is calculated based on the energy balance. Source: IEA (2023). IEA. CC BY 4.0. Power generation in Colombia is dominated by hydro but backed up with gas-fired and coal-fired power generation.

Will Colombia's energy plans reduce international demand for coal?

However, Colombian energy plans recognise the potential longer term reduction of international demand for coal in the context of the energy transition. The Petro government has banned investment in new coal mines and introduced a tax on coal use for combustion as of 1 January 2023.

Does Colombia have a gas policy?

Colombia has reached its goal of providing 1 million new families with gas, with was the objective of the PND 2018-22, partly thanks to LPG programmes. The government supports 100 000 households in clean cooking and subsidises 70% of the purchase cost of the cylinder and up to 50% of the consumption.

Why is natural gas important for energy security in Colombia?

IEA. CC BY 4.0. Power generation in Colombia is dominated by hydro but backed up with gas-fired and coal-fired power generation. Natural gas flexibility is critical for energy security in Colombia, mainly due to its role in supporting electricity supply but also strong industry demand.