This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 8/17/2018
Overview
 
Year201520162017 2018 Estimated
Total Local Production255250255258
Total Exports220225200210
Total Imports1,4351,2711,0101,011
Imports from the U.S.307220223196
Total Market Size1,1351,2051,0651,059
Exchange RatesCOP 2,746COP 3,053COP 2,951 COP 3,000
Total market size = [(total local production + imports) – exports]
Units: USD millions
Source:   World Trade Atlas; Industry Associations

Colombia’s installed electric power generation capacity currently stands at 16,742 MW. Hydro-based capacity’s share accounts for 10,963 MW (about 66% share), with the remainder being generated by gas (3,509 MW/nine percent share), coal-fired power plants (1,339 MW/eight percent share), and the rest from smaller facilities including wind and cogeneration. By 2028, the Government of Colombia projects that installed capacity will reach 24,200 MW, with the potential inclusion of wind power (2,800 MW), solar (1,192 MW), and some 3,500 MW from other sources (cogeneration, coal, hydro and natural gas), according to the Colombian government’s Mining and Energy Planning Unit (UPME).

With the approval of Law 1715 in 2014, the government is making efforts to promote private ventures -with large scale renewable energy projects to be incorporated in the national grid system- as well as promote energy efficiency and the implementation of demand-side management systems. Currently, experts from UPME and the Energy and Gas Regulatory Commission (CREG) are developing regulatory measures that will support a suitable environment for solar photovoltaic, wind, and geothermal power projects to be competitive and complement the existing power grid, with improved system reliability, in addition to measures aimed at developing a sound smart meter infrastructure by 2030.

However, industry sources continue to express major concerns about the lack of progress with regards to review of environmental licensing requirements and negotiations with local communities as these continue to affect all areas of infrastructure development, especially the energy and extractive industries. 

Colombian imports of electric power generation equipment benefit from proximity to the U.S. and from the U.S.-Colombia Trade Promotion Agreement, which eliminated Colombian import duties on equipment, spare parts, and accessories for the power generation sector.

Leading Sub-Sectors:
  • Power distribution and specialty transformers
  • Switchgears
  • Solar photovoltaic systems
  • Wind power systems
  • Industrial controls
  • Steam, gas, and hydraulic turbines
  • Smart meters and demand response systems
  • Turbine generator sets 
 
Opportunities
The outlook for the Colombian electricity sector is promising since the government is planning to develop several new power generation projects, mostly hydro, to accommodate growing demand through 2028. The recent incidents affecting the country’s largest hydro power plant (Ituango – 2,400 MW), which suffered from landslides that required flooding the powerhouse to avoid a partial dam collapse, led the government to replace its rated capacity with a number of new projects including coal, solar, and wind. 

In addition, industry expects an upcoming power auction in 2018 that will include for the first time large scale wind and solar projects to strenghten the country’s complementarity with existing generation assets as well as increase system reliability and reduce greenhouse gas emissions. Post expects the auction to reach between 1.5 to 2 GW for grid-connected systems with the winners to be announced in early 2019.

The U.S. Trade and Development Agency (USTDA) continues to support power generation projects in Colombia through a feasibility study grant to Colombian electricity company Celsia for the potential development of a Battery Energy Storage System. USTDA has been active in Colombia supporting projects that demonstrate the advantages of demand-side management, wind and geothermal power, smart grid technologies and large-scale energy storage solutions to improve the nation’s high-voltage transmission and distribution network.

Trade Events
FISE 2019 (International Fair on the Electric Sector)
November 25 - 29, 2019 (subject to confirmation)
Plaza Mayo Convention and Exhibition Center
Medellín, Colombia
 
Key Contacts
 
U.S. Commercial Service Bogota contact: Julio Carbo, Commercial Specialist   
Email: Julio.Carbo@trade.gov      
Tel: 57 1 275 2723
 
U.S. Trade and Development Agency (TDA)  
Association of Power Generation Companies (ACOLGEN)
Energy and Natural Gas Regulatory Commission (CREG)
Grupo Energía de Bogota (EEB)
Empresas Públicas de Medellín (EPM)
InterColombia - Interconexión Eléctrica S.A. (ISA)
ISAGEN
Mining and Energy Planning Unit (UPME)
National Planning Department (DNP)
Ministry of Mines and Energy (MME)

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Colombia Energy Trade Development and Promotion