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COLOMBIA INVESTMENT SUMMIT 2020- energy
  • According to the World Economic Forum, Colombia is the second country in Latin America with the highest progress in the Energy Transition Index, having climbed from 34th to 25th position in 2020. Colombia was designated by the UN as Global Champion to lead the thematic axis of the energy transition in the framework of the High-Level Dialogue on Energy that will be part of the United Nations General Assembly in September 2021.

  • Colombia has a significant energy potential, with power generation from non-conventional renewable sources, due to the availability of energy resources such as solar (average daily radiation 4.5 kWh / mhigher than the world average of 3.9 kWh / m2), wind park (potential for the implementation of wind plants of more than 25GW) and biomass (potential to supply 46% of the national energy demand - more than 500,000 TJ per year).

  • The Colombian government established a regulatory, institutional and market scheme that aims to diversify the energy matrix. The goal is to increase 50 times the installed capacity in alternative sources from 50 MW in 2018 to 2500 MW by 2022. According to the Energy Plan 2050 published by the UPME, the participation of non-conventional energies is projected to reach 25% of the energy matrix in the next couple of years.

  • To foster the development of renewable energies, Colombia has enacted several regulatory and tax incentives such as the deduction of 50% of the income tax for 15 years for investments in alternative sources; an income tax exemption for the sale of NCRE by the generator; an exclusion of Tariff and VAT for the importation of equipment for the development of NCRE generation projects; the automatic exclusion of VAT in the acquisition of solar panels and equipment for solar generation.

  • There are more than 185 power generation projects registered in UPME at stages II & III, with an installed capacity of 11,270.70 MW. (Solar: 7,420.95 MW, 138 Projects; Wind: 2,935.40 MW, 16 Projects; Other Technologies: 914.35 MW, 33 Projects). The effective capacity of power generation in 2020 was 17,484.71 MW, in which 63.16% was produced with water resources (11,043 MW), 29.29% with thermal resources (5,122 MW) and the 7.54% remaining with smaller, cogenerated, and self-generating generation plants.

  • There are 19 transmission projects in execution for USD 2,053 million. In 2021, the UPME will launch 17 calls, currently there are 7 projects in pre-publication stage for more than USD 100 million investment in transmission expansion projects to guarantee the reliability of the system.

  • The National Interconnected System connects 48% of the national territory and covers 97% of the population. The non-interconnected areas represent the remaining 52%, a total of 17 departments, 1,441 municipalities and 625 thousand people. Currently, these areas produce energy with diesel. There are investment opportunities for foreign investors interested in providing clean energy solutions in these areas of the country.