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COLOMBIA INVESTMENT SUMMIT 2020- energy
  • Colombia is positioned as the third economy in South America in the Energy Transition Index 2019 of the World Economic Forum, after Uruguay and Chile. This index measures inclusive, sustainable, affordable and secure global energy systems.
  • 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 / m2 higher 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.
  • In order 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 energy 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 178 power generation projects registered before the UPME at stages II & III, with an installed capacity of 9,909 MW. The installed capacity of power generation in 2018 was 17,312 MW, of which 10,974 MW (63%) corresponds to generation made by hydroelectrics, followed by 5,087 MW of thermal generation.
  • 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.