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Electricity sector in Colombia information


Power plants in Colombia
Electricity sector of Colombia
Data
Electricity coverage (2015)96.96% (total), 99.72% (urban), 87.83% (rural); (LAC total average in 2014: 97%)
Installed capacity (2015)15.5 GW
Share of fossil energy33%
Share of renewable energy64% (mostly large hydro)
GHG emissions from electricity generation (2003)6.5 Mt CO2
Average electricity use (2005)828 kWh per capita
Distribution losses (2014)11%; (LAC average in 2014: 16%)
Consumption by sector
(% of total)
Residential42.2%
Industrial31.8%
Tariffs and financing
Average residential tariff
(US$/kW·h, 2006)
0.0979; (LAC average in 2005: 0.115)
Average industrial tariff
(US$/kW·h, 2006)
0.0975 (LAC average in 2005: 0.107)
Services
Sector unbundlingYes
Share of private sector in generation60%
Competitive supply to large usersYes
Competitive supply to residential usersYes (only above 0.5 MW)
Institutions
No. of service providers66 (generation), 7 (transmission), 61 (distribution)
Responsibility for transmissionTranselec
Responsibility for regulationCREG
Responsibility for policy-settingMinistry of Mines and Energy
Responsibility for the environmentMinistry of the Environment, Housing and Regional Development
Electricity sector lawYes (1994)
Renewable energy lawNo
CDM transactions related to the electricity sector3 registered CDM projects; 107,465 t CO2e annual emissions reductions

The electricity sector in Colombia is dominated by large hydropower generation (65%) and thermal generation (35%). Despite the country's large potential for new renewable energy technologies (mainly wind, solar, and biomass), this potential has been barely tapped. A 2001 law designed to promote alternative energies lacks certain key provisions to achieve this objective, such as feed-in tariffs, and has had little impact so far. Large hydropower and thermal plants dominate the current expansion plans. The construction of a transmission line with Panama, which will link Colombia with Central America, is underway.

An interesting characteristic of the Colombian electricity sector (as well as of its water sector) is a system of cross-subsidies from users living in areas considered relatively affluent and from users consuming higher amounts of electricity to those living in areas considered poor and to those who use less electricity.

The electricity sector has been unbundled into generation, transmission, distribution, and commercialization since sector reforms were carried out in 1994. About half the generation capacity is privately owned. Private participation in electricity distribution is much lower.

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