Power Sector Transition in La Guajira

From Global Energy Monitor
This article is part of the Global Energy Transition Tracker project sponsored by Global Energy Monitor

Introduction

La Guajira is a department (similar to province or state) in Colombia stretching across most of the 9,700-square-mile peninsula on the country's Caribbean coast. It is divided into upper, middle, and lower Guajira due to its vast biogeographical variations. Approximately two-thirds (62.5%) of the peninsula is recognized Wayuu Indigenous territory, organized into resguardos, or indigenous landholdings.[1][2]

La Guajira receives strong trade winds (average wind speeds are estimated to be 9.8 m/s),[3] high solar radiation, high temperatures, low precipitation, and low humidity most of the year.[1] These factors mean La Guajira is exceptionally well-suited for renewable energy development. According to the ministry’s Mining and Energy Planning Unit (UPME), La Guajira has the potential of 15 gigawatts of wind energy capacity.[4] However, this development must be balanced by distributional, procedural, recognition, restorative, and cosmopolitan justice, all of which contribute to environmentally just outcomes.[5]

Nationally, Colombia is heavily dependent on hydropower systems for energy generation. However, due to this, the grid is particularly vulnerable to El Niño and La Niña events, which drastically impact rainfall patterns in South America and reservoir levels. With this in mind, the government of Colombia aims to increase wind and solar energy to increase access to "affordable, reliable, sustainable, and modern energy for all," per the United Nations' Sustainable Development Goal 7.[6] In October 2023, the Colombian Government is working toward achieving 6 GW of operational renewable energy by 2026.[7]

Colombia's energy demand is projected to increase by nearly 60% by 2050 over 2020 levels, with gas and electric demand increasing faster than oil.[8] While 99.77% of Colombian residents have access to basic electricity,[9] La Guajira's electrification rate is only 60.5%,[10] and pricing stability is and will continue to be a major challenge in the coming years. Equity, security, and sustainability make up Colombia's energy transition trilemma.[9]

Symbolic Importance

La Guajira is a key region for renewable energy development for Colombia to meet its national climate and clean energy goals. With ample wind resources and direct sunlight, the Department is estimated to have a wind resource of 15 gigawatts,[4] and a number of financing opportunities may aid in renewable energy development. However, La Guajira’s Indigenous communities have expressed caution and concern surrounding renewable energy development, due in part to unjust fossil fuel practices and amplified by insufficient consultative processes and compensation packages for renewable energy projects. Additionally, while La Guajira is resource-rich, its inhabitants experience food and water insecurity, as well as the fourth-highest poverty rate in the country, at 48.7% and 42.9% in 2021 and 2022, respectively.[11] La Guajira is a case study for meaningful community engagement and the potential for injustice if local participation is insufficient. As written by IWGIA, “the last pending procedure should have been the first one: the consent of the communities that own the territory.” [12]

Multidimensional Poverty Index in Colombia 2021-2022, Pobreza multidimensional Resultados 2022, NATIONAL ADMINISTRATIVE DEPARTMENT OF STATISTICS - DANE, May 2023[11]

Any renewable energy development in La Guajira must also be seen as an opportunity to collaborate honestly and transparently with local communities to ensure fair land use compensation and benefit sharing, as well as the accommodation of Wayuu communities’ needs, priorities, and ways of life, especially since 46% of La Guajira's population is of Wayuu descent.[2] If this process goes well, it could be an important model for improved relations between renewable energy interests and Indigenous communities worldwide.

Current System Description

Current Power Capacity Mix

In 2022, according to Global Energy Monitor's research, Colombia's installed utility-scale solar and wind generating capacity represented only about 1.5% and 0.1% of the country's total electrical mix, respectively.[3]

Operating generation capacity in MW in La Guajira, Colombia, as of February 2024. Chart contents: - Solar: 670 - Onshore wind: 897 - Offshore wind: 290
Operating generation capacity in La Guajira, as of February 2024.[13][14]
Colombia's operational generating capacity, as of February 2024. Chart contents: - Solar: 9,674.5 MW - Onshore wind: 1,182 MW - Coal: 1,646 MW - Natural Gas: 4,066 MW - Hydropower: 10,586 MW - Bioenergy: 71 MW
Operational generating capacity in Colombia, as of February 2024.[15][13][14][16][17][18]


















Renewables in La Guajira

Prospective Renewable Energy Capacity

Announced and in-development (permitting, pre-construction, construction) renewable energy capacity in La Guajira, Colombia, as of February 2024. Chart contents: - Solar: 2,454.5 MW - Onshore wind: 4,851.8 MW - Offshore wind: 1,650
Pipeline of projects (announced and in-development) for La Guajira, Colombia, as of February 2024.[13][14]

La Guajira's energy pipeline primarily consists of renewable energy projects. As of 2022, 42 utility-scale (>20 MW) wind farms[19] and seven utility-scale solar farms have received approval in La Guajira.[5][20] The majority of wind projects are scoped on Wayuu territorial land.[19] There are currently no newly announced or developed coal-fired or gas power plants in the department.[15][17]

Additionally, the Termoguajira Power Plant, which has historically run on coal primarily and natural gas secondarily, is transitioning toward 100% decarbonized electricity generation. The 290-MW facility will leverage solar panels and battery storage to eliminate its emissions.[21] A plan for this conversion is expected to be published in late 2023.[22]

Renewable Energy Targets

Law 1955 of 2019, alongside Resolution 40060 of 2021, established a national renewable energy target of 10% to be purchased by the wholesale energy market by 2023,[23] excluding large hydropower projects.[3] In its 2020 National Energy Plan, Colombia outlined plans to reduce carbon dioxide emissions by 22.5% by 2050, compared to business-as-usual.[8] In December 2020, President Duque announced the release of Colombia's revised NDC report, which raised the national emissions reduction target from 20% to 51% by 2030.[24][25]

As a whole, countries of Latin America established a goal to reach 70% renewable energy use by 2030.[26]

Additionally, President Gustavo Petro established the goal of 6 GW of operational renewable energy by the conclusion of his term in 2026. The Ministry of Mines and Energy has begun collaborating with other public entities to work on achieving this target.[7]

Major Renewable Energy Projects

Operating Renewable Energy Projects in La Guajira, Colombia, as of February 2024[14][13]
Generation Project Capacity (MW) Status
Onshore Wind Guajira Wind Farm (Guajira 1) 20 Operating
Onshore Wind Musichi Wind Farm 199 Operating
Onshore Wind Punta Cocos Wind Farm 362 Operating
Onshore Wind San Juan Eólico wind farm 103 Operating
Onshore Wind EO200i Ipapure Wind Farm 201 Operating
Onshore Wind WESP 01 Wind Farm 12 Operating
Solar Toro Moreno Solar Farm 99.9 Operating
Solar Santa Teresa PV Solar Park 200 Operating
Solar San Juan Solar Plant, Unit 1 100 Operating
Solar San Juan Solar Plant, Unit 2 100 Operating
Solar San Juan PV (PSF) II Solar Park 70 Operating
Solar San Juan (SJ Renovables Sun 1) solar farm 100 Operating

In addition to the projects listed above, the 19.5-MW Jepírachi wind farm has recently begun the process of decommissioning. In service since 2004,[13] the onshore wind farm was disconnected from the national grid after new regulations made continued operation untenable, according to Public Companies of Medellín (EPM), the utility company that manages the wind farm. The entire decommissioning process is projected to take nine to twelve months.[27]

Pipeline of Renewable Energy Projects in La Guajira, Colombia, as of May 2023[14][13]
Generation Project Capacity (MW) Status
Solar Chivo Mono 1 solar farm 750 Pre-Construction
Solar Cuestecitas (SOWITEC) Solar Farm 135.4 Pre-Construction
Solar Cuestecitas Solar Park, Phases 1-3 600 Pre-Construction
Solar Enr Col 1 Solar Farm 120 Pre-Construction
Solar Guardientera Solar Farm 181.2 Pre-Construction
Solar Leo Solar Farm, Unit 2 80 Pre-Construction
Solar Leo Solar Farm, Unit 1 19.9 Pre-Construction
Solar Maleiwa PV Solar Project 200 Pre-Construction
Solar Potreritos Solar Farm 168 Pre-Construction
Solar Tolokot Solar Farm 200 Pre-Construction
Offshore Wind Astrolabio Offshore Wind Farm 825 Announced
Offshore Wind Barlovento Offshore Wind Farm 825 Announced
Offshore Wind Barlovento 1 offshore wind farm 50 Pre-Construction
Offshore Wind Barlovento 2 offshore wind farm 50 Pre-Construction
Offshore Wind Barlovento 3 offshore wind farm 50 Pre-Construction
Offshore Wind Barlovento 4 offshore wind farm 50 Pre-Construction
Onshore Wind Acacia Wind Farm 80 Construction
Onshore wind Motosira wind farm 300 Pre-Construction
Onshore Wind Acacia 2 wind farm[2] 80 Construction
Onshore Wind Alpha Wind Farm 212 Construction
Onshore Wind Cerrito,[2] formerly Andrea Jusayu Wind Farm 378 Pre-Construction
Onshore Wind JK2,[2] formerly Apotolorru Wind Farm 75 Pre-Construction
Onshore Wind Beta Wind Farm 280 Pre-Construction
Onshore Wind La Sabana wind farm 250 Pre-Construction
Onshore Wind Britos Wind Farm 144 Pre-Construction
Onshore Wind Camelia Wind Farm 265.5 Construction
Onshore Wind Camelias Wind Farm 267.9 Construction
Onshore Wind JK4,[2] formerly Carrizal Uribia Wind Farm 195 Pre-Construction
Onshore Wind JK1,[2] formerly Casa Electrica Wind Farm 180 Pre-Construction
Onshore Wind Chemesky Wind Farm 112 Pre-Construction
Onshore Wind Dividivi Wind Farm 150 Pre-Construction
Onshore Wind Guajira 2 wind farm 414.4 Construction
Onshore Wind La Manita wind farm 9 Announced
Onshore Wind Urraichi-Chemesky wind farm 112 Pre-Construction
Onshore Wind Noe wind farm 9 Announced
Onshore Wind Jehova wind farm 9 Announced
Onshore Wind El Ahumado Wind Farm 50 Pre-Construction
Onshore Wind Elipse Wind Farm 200 Pre-Construction
Onshore Wind Guajira Wind Farm 414.4 Construction
Onshore Wind JK3,[2] formerly Irraipa Wind Farm 99 Pre-Construction
Onshore Wind Jotomana-Apotolorru II Wind Farm 99 Pre-Construction
Onshore Wind Jouttalein Sas Wind Farm 150 Pre-Construction
Onshore Wind Kappa Wind Farm 500 Pre-Construction
Onshore Wind Neptuno Wind Farm 150 Pre-Construction
Onshore Wind Omega Wind Farm 300 Pre-Construction
Onshore Wind Sirius Wind Farm 150 Announced
Onshore Wind Tumawind Wind Farm 200 Pre-Construction
Onshore Wind Wakuaipa 200 MW Wind Farm 200 Pre-Construction

By 2034, La Guajira is expected to have 45 operational wind farms generating 8 GW. The vast majority of these will be located on the traditional lands of Wayuu communities.[2] Nationally, Colombia has recently extended the deadlines for expressing interest in offshore wind in Colombian waters.[28]

Shelved and Cancelled Renewable Energy Projects in La Guajira, Colombia, as of May 2023[14][13]
Generation Project Capacity (MW) Status
Onshore Wind Castilletes Wind Farm 100 Cancelled
Onshore Wind Florguajira Wind Farm 100 Cancelled
Onshore Wind Jouktai Wind Farm 32 Shelved
Onshore Wind Maria Wind Farm 200 Cancelled
Onshore Wind Patomana Wind Farm 200 Cancelled
Onshore Wind Warrutumana Wind Farm 100 Cancelled
Onshore Wind Watchuali Wind Farm 150 Cancelled
Onshore Wind Windpeshi wind farm 205 Shelved
Map of wind energy projects, both operating and in-development, in La Guajira, Colombia. The map also includes information on the extent of Wayuu territorial land and transmission lines which connect renewable energy projects to the national grid. Wayuu territory stretches across most of La Guajira, and many projects overlap with their land.
Locations of wind farms, associated infrastructure, and Wayuu territory in La Guajira, Colombia. Source.

Potential of Renewable Energy

La Guajira wind speeds, at 100m altitude. Published by the Global Wind Atlas.
Photovoltaic solar potential, La Guajira. Published by the Global Solar Atlas.

Across the entirety of Colombia, the country's wind and solar potential are estimated to be 30 GW and 32 GW, respectively.[3] According to the Fund for Non-Conventional Energy and Efficient Energy Management (Fondo de Energías No Convencionales y Gestión Eficiente de la Energía, FENOGE), Colombia's solar radiance is 60% higher than the global average.[29]

Colombia's Mining and Energy Planning Unit (UPME) estimates that La Guajira alone has the potential for approximately 15 gigawatts of wind energy alone,[4] with wind speeds averaging 9.8 meters per second and a capacity factor of nearly 65%.[2] In total, about 70% of Colombia's new and upcoming renewables development, along with its associated transmission, is planned to be located in La Guajira,[5] and the Department represents an estimated 18-21 GW of Colombia's total wind potential.[2] In the draft of its revised 2022-52 National Expansion Plan, UPME also projects the addition of approximately 8,851 MW of solar power, 2,564 MW of wind, 1,800 MW of large-scale hydropower, and 305 MW of small hydroelectric plants between 2023 and 2027.[30]

Potential impacts from renewable energy expansion

Colombia is the most biodiverse country by square kilometer in the world, with more than 56,300 species identified.[31] Moreover, wind turbines pose a potential collision risk for birds and bats, the latter of which are particularly important for cardón cactus pollination.[32]

While La Guajira is being framed as the "epicenter" of Colombia's energy transition, renewable energy projects have caused social tensions, particularly for Wayuu communities. In fact, Wayuu community members have argued that the consultation processes have been insufficient and rushed, with community members lacking the information needed to provide informed consent as prescribed by law.[33] Existing project construction has faced strong local resistance, mostly in the form of blockades and protests, which have contributed to project delays.[5] In fact, in May 2023, Italy-based Enel indefinitely suspended construction on its Windpeshi Wind Farm following three years of delays.[34]

Local NGOs such as Nación Wayuu have highlighted that robust and fairly compensated consultative processes can lead to just outcomes for community members. For example, one community negotiated with Celsia, a Colombian energy firm, for enough compensatory funding to construct an aqueduct and increase access to education for young people. Despite this, many are wary of renewable energy development.[4] In many cases, the consultative process spearheaded by renewable energy developers has been considered "superficial," with community members lacking the technical and legal expertise to make informed decisions, as dictated by Colombia's 1991 Constitution.[35] The practice of renewable energy companies providing compensation to certain communities over others, with locals nearer to projects generally receiving greater compensation, has resurfaced preexisting social tension, as noted by Indepaz.[33]

Furthermore, existing wind farm scoping has already encroached on or near sacred sites. Anecdotal evidence from a member of the Uriana clan points to a private company marking territory only a few meters from a community cemetery. According to Open Democracy, existing compensatory and royalty mechanisms, as well as the process of harnessing wind energy, fail to recognize the relationship that Wayuu communities have with their land, territory, and the physical environment.[32]

The proliferation of renewable energy in La Guajira will require continued mining of minerals like copper, nickel, lithium, lead, iron, and zinc. These mining operations were touted as a positive to Colombia's economy in a tweet by former Minister of Mines and Energy, Diego Mesa Puyo.[32] Despite the importance of critical minerals mining, the region faces opposition and concerns due to its environmental impacts such as deforestation, landslides, and the loss of forest-based livelihoods.[36] One of the cases is the Cerro Matoso mine for nickel resources, where reports highlight air pollution containing carcinogenic crystalline silica, posing health risks to local residents and mine employees in the vicinity.[37]

Fossil Fuels in La Guajira

Fossil Resources and Retirement

According to Stockholm Environment Institute's Production Gap Report 2023, Colombia's coal production is expected to increase until 2035, after which it is projected to decline by 70% by 2050. Additionally, by 2050, oil and gas production are expected to decline by 67% and 45% respectively.[38]

La Guajira's economy relies on natural gas extraction and coal mining.[5] Cerrejon coal mine is one of the largest pit mines in the world, with production averaging between 20 and 30 million tonnes per annum in recent years, though the mine's output is expected to decrease significantly from 2030 onward.[20][39] In addition to that, more than 3.67 million tons of thermal coal exist within Wayuu territory, accounting for 35% of the Colombia's gas extraction.[40]

Coal mines and gas fields in La Guajira[39][41]

Type Name Status Production
Coal mine Cerrejon coal mine Operating
Papayal Mine Proposed 1.3 Mt
San Juan Mine Proposed 9.2 Mt
Cañaverales Mine Proposed 1.4 Mt
Gas field Chuchupa Oil and Gas Field (Colombia) Operating 1,686 million m³/y
Ballena Gas Field (Colombia) Operating 240 million m³/y
Uchuva Gas Field (Guajira, Colombia) Discovered -

In September 2024, Colombian courts ordered the suspension of activities on the Uchuva-2 gas field citing a lack of proper consultations with Indigenous populations near the gas well.[42] This suspension was lifted after a judge overturned the decision.[43]

In 2015, coal mining represented 1.3% of Colombia's GDP and 12% of the country's total exports.[44] By 2019, this figure increased to 18% of total exports, equaling $4.9 billion in revenue.[45] In 2013, coal extraction made up 47% of La Guajira's regional GDP. Despite this, a 2016 poll commissioned by the Colombian Mining Association highlighted that 59% of interviewees in mining regions believed their well-being would be improved if no further coal extraction was developed.[44]

Given Colombia's significant coal assets and declining global demand, the country's coal mines and supporting infrastructure are at risk of becoming stranded assets.[45] Additionally, UPME projects a gas deficit in Colombia by 2024.[8]

Overview of current fossil fuel impacts

Climate change has caused droughts in La Guajira, which has caused increased crop failures and livestock die-off. In turn, this has exacerbated a malnutrition crisis among children and nursing mothers in the department, which is the fourth poorest in the country.[35]

Cerrejon coal mine, a massive pit mine, has caused significant environmental and social degradation since coal extraction began in 1985. Some 15 out of 21 Wayuu communities in the vicinity of the mine have been displaced, with an estimated 7,000 community members having been resettled since the 1970s. Additionally, significant amounts of heavy metals, in quantities well beyond legal limits, have been found in critical water sources, namely the Rancheria River and the Tabaco, Bruno, and Cerrejón streams.[46]

The mine uses more than 12 million gallons of water per day, which is exacerbating the inaccessibility of potable water for rural and Indigenous populations. Moreover, air quality has been degraded by coal dust, particulate matter, and other contaminants, which can cause pulmonary and cardiovascular diseases, cancer, and respiratory illness, which is the second highest cause of death in nearby Wayuu communities.[46] Because of this, as well as the overall ecosystem disruption generated by the mine, Cerrejón has been controversial locally for its entire history.[32] In addition, issues pertaining to the relocation of Indigenous and Afro-Caribbean communities (both forced and voluntary), environmental pollution, and social conflicts related to extractive sectors have been logged.[44] Similarly, the proposed Cañaverales mine is expected to alter waterways, harm tropical dry forests, impact agricultural practices, and increase populations due to an influx of workers to the region.[47]

Moreover, the land that Cerrejón sits on houses the graves of Wayuu ancestors, meaning its location has spiritual significance. According to a report published by Open Democracy, the mining company forcibly moved an ancestral cemetery.[32][48][49]

Employment

Current employment by sector

As of 2018, in La Guajira, 90.3% of heads-of-households generated income through informal work.[50]

In 2022, the Cerrejón coal mine employed 5,155 direct and 6,993 indirect workers, many of which are from La Guajira.[51] In fact, an estimated 1.8% of all employment in La Guajira is tied to Cerrejón.[52]

Across Colombia, jobs in solar increased significantly throughout 2021, increasing to 2,381 jobs from 360 in 2020. The majority of hires for existing projects are men.[3]

Prospective employment from the renewable energy sector

Across the Caribbean and Latin America, jobs in renewable energy are expected to increase by 100,000 by 2030. In La Guajira, the existing project pipeline is expected to generate 11,000 jobs. According to Law 2099 (2021), locals should be prioritized in renewable power generation, distribution, and commercialization, though no enforcement mechanisms exist.[3]

Land availability

Wayuu Indigenous territory and potential wind energy areas. Source.
Map of La Guajira Peninsula and its ecosystems. Originally published as a joint project of the Missouri Botanical Garden, the Ecological Health Network, and the Restoration Ecology Lab at Virginia Tech.

While La Guajira could be the epicenter of Colombia's energy transition, renewable energy development is a point of concern for many. A study from the Institute for Development and Peace Studies (Indepaz) estimates that 35% of ancestral lands across 288 Wayuu communities could be used in wind energy development.[35] Animal husbandry is central to Wayuu food stability and livelihood. Practices have been severely impacted by environmental changes, namely increased flooding during rainy seasons, extended dry seasons, and increased incidences of disease among livestock as a result.[1]

Most projects in La Guajira, both current and those that have been shelved or canceled, are located on the lands of the Wayuu Indigenous people, which the Political Constitution of Colombia describes as "inalienable, imprescriptible, and unseizable," meaning they cannot be leased or purchased. Instead, prospective project developers must reach benefits agreements with Wayuu leadership and community members.[53]

Colombia is one of 17 "megadiverse" countries, hosting nearly 10% of global biodiversity, 314 different types of ecosystems, 456 mammal species, 208 endangered amphibian species, and 1,800 bird species, of which 73 are endemic.[54] La Guajira is positioned along an upwelling zone of the Southern Caribbean, and because of this, the Department's coast is highly ecologically productive. Mangrove forests and aquatic vegetation communities create nursery habitats for endangered fish species, sharks, and sea turtles. Some 87 aquatic bird species have been observed in La Guajira, including flamingos, egrets, pelicans, and herons. Upwelling systems tend to be high in nutrient availability, which is necessary to support phytoplankton, zooplankton, and the ecosystem webs that rely on this foundation.[55]

Civil Society Engagement

Colombia was the deadliest country in the world for environmental activists in 2022 and 2023, with 60 and 79 killings in the country, respectively.[56]

In late 2023, President Petro issued a decree allowing energy communities, particularly rural farmers and Indigenous and Afro-Colombian communities, to create renewable energy generation and commercialization projects with developers. While communities are encouraged to spearhead projects to meet their own energy needs, excess power may be sold back to the national grid to generate local revenue.[57]

The International Work Group for Indigenous Affairs (IWGIA) works to promote, protect, and defend Indigenous rights around the world. Founded in 1968, IWGIA originally focused on documenting human rights violations and supporting advocacy efforts of Indigenous Peoples in the Amazon and Latin America. IWGIA has worked closely with Wayuu leadership on the effects of wind farms on their lives and livelihoods.[58]

Foro Nacional Ambiental, or the National Environmental Forum, aims to support the environment and sustainable development in Colombia. The organization creates space for civic discussion and positions itself as a "vehicle for expressing the concerns of civil society."[59]

Indepaz, or the Instituto de estudios para el desarrollo y la paz, is a non-governmental organization based in Colombia which advocates for peace in the country. Indepaz's work is focused on building relationships, fostering dialogue across stakeholder groups, and strengthening grassroots efforts. Its areas of interest include citizen security, territorial consolidation, advocacy related to land, victims' rights, justice and peace, reincorporation, mining and energy, sustainable development, and peace.[60] Among other activities in La Guajira, Indepaz published a report in 2023 titled "Por el mar y la tierra guajiros, vuela el viento Wayuu" (Through the sea and land of guajiros, the Wayuu wind flies) which described the potential community fragmentation that may occur during wind farm construction.[61] Indepaz also helped Wayuu leadership draft the Protocolo autonómico de Consulta y Consentimiento Libre, Previo e Informado del pueblo Wayúu, or Autonomous Protocol of Consultation and Free, Prior and Informed Consent of the Wayúu people, which details the norms and protocols for non-Indigenous activity in Wayuu territory and outlines the process for government representatives, politicians, researchers, individuals, and national and foreign companies interested in pursuing activities in Wayuu territory.[62]

The Wayuu National Indigenous Movement, also called Nación Wayuu, is a local human rights organization that has been vocal about the insufficient inclusion of Wayuu community members in the consultation process. Nación Wayuu advocates for the human rights and self-governance of indigenous peoples to ensure territorial authority, unity, and autonomy, as well as political, economic, social, and cultural inclusion.[63]

Tierra Grata provides decentralized clean energy, water, and sanitation solutions to rural communities. Pricing is based on income. The organization also provides social intervention programs and services to build capacity in the community to manage and maintain their installation, ensuring longevity and sustainability.

Censat Agua Viva advocates for environmental justice, respect for the pluriverse, and care for life across four program areas: Water, Mining Conflicts, Energy and Justice, and Forests and Biodiversity. The organization works in La Guajira, along with Antioquia, Cauca, Caquetá, Nariño, Meta, Putumayo, Santander, and Tolima.[64]

The Stockholm Environment Institute (SEI) Latin America office has worked in identifying the principal factors influencing or inhibiting social acceptance of wind energy projects in La Guajira, strengthen social dialogue platforms, information-sharing, and awareness, and make concrete recommendations directed at decision-makers, local communities, and the private sector in order to leverage socially beneficial outcomes. Some of the most recent publications on the renewable energy landscape in Colombia include reporting on solar and wind power policy,[65] the challenges of wind energy in Wayuu Indigenous territories,[66] the enabling factors for social acceptance[2][67] and an assessment of energy justice in the development of transmission infrastructure.[68]

In addition to the groups above, La Guajira has 288 active Energy Communities, defined as "users or potential users of energy services may establish Energy Communities to generate, market or efficiently use energy through the use of non-conventional sources of renewable energy -(FNCER)-, renewable fuels and distributed energy resources."[69]

Free, Prior, and Informed Consent

As mentioned above, Free, Prior, and Informed Consent (FPIC) is a fundamental right for Indigenous communities in Colombia. While dynamic in nature, FPIC has five primary stages:[2]

  1. Determination of the expediency of prior consultation, which decides whether consultation is necessary for the project. This is determined based on expected impacts of the individual project.
  2. Coordination and preparation, where stakeholders are identified and convened.
  3. Pre-consultation, in which representatives create a consultative methodology and roadmap. The roadmap must be agreed upon by relevant parties.
  4. Prior consultation, wherein the roadmap is implemented through workshops and other activities. The goal of the consultation is to agree on a certified protocol for addressing potential impacts and creating accountability structures.
  5. Monitoring of agreements, overseen by a committee to ensure proper execution.


While this process is intended to mitigate potential abuses, the lack of concretely defined and always-followed procedures makes the process seem like a "transactional agreement" rather than a meaningful engagement process. Where FPIC is lacking, Indigenous leaders have instead established their own processes, such as the Autonomous Protocol for Consultation and Free, Prior and Informed Consent. In their 2024 report, "Enabling factors of social acceptance of wind energy projects in La Guajira," the Stockholm Environment Institute identifies eight activities that would increase Indigenous support of renewable energy projects in the Department: 1) facilitate access to information, 2) delimit the role of community advisors, 3) consider the duality of Wayuu leadership, 4) regulate community benefit-sharing, 5) place greater focus on the distribution of benefits within communities, 6) guarantee and monitor funds from "electricity transfers," 7) identify and strengthen regional institutional capacity, and 8) coordinate industry development with territorial planning instruments.[2]

Governmental information

Colombia is a parliamentary democracy divided into 32 departments and the capital district of Bogotá. The Colombian government comprises legislative, executive, and judiciary branches. The president, who is the head of state and commander-in-chief of armed forces, serves a one-term limit of four years and cannot seek re-elections.[70] The House of Representatives and Senate initiate and pass national statutes. Both chambers serve four-year terms and are elected by popular vote. The judiciary branch is comprised of the Supreme Court of Justice, the Judicial District Superior Tribunals, and lower courts, all of which are tasked with setting precedent and upholding the law.[71][72]

Paramilitarism has a significant presence in Colombia and severely inhibits democracy, with more than 11,000 officials being implicated, votes regularly being bought, and assassinations of candidates all too common.[72]

Relevant National Departments and Agencies:

Ministry of Mines and Energy (MME): Oversees non-renewable resource management, efficiency of use, conservation, and sustainable development. Also tasked with planning development and use of mining resources and contributing toward public policy relevant to extraction.[73][74]

Ministry of Economy's Committee of Ministers for Sustainable Productive Development: Defines and guides policy related to sustainable development and deployment of technology supporting carbon neutrality.[75][76]

Mining and Energy Planning Unit (UPME): Nested under the Ministry of Mines and Energy, UPME helps with the development, support the formulation of, and implementation of public policy related to mining and energy. Additionally, UPME conducts research and helps to coordinate knowledge exchange.[77]

Energy and Gas Regulation Commission (CREG): Regulates the activities of public utilities such as Empresas Publicas de Medellin ESP; Enel Colombia; ISAGEN Energía Productiva; Celsia Colombia; and Termocandelaria Power Ltd.[78] While CREG is supposed to be staffed by energy experts, as of August 2024, the Commission was staffed by one full-time and three temporary commissioners.[79]

XM: The transmission system and energy market operators in Colombia.[80]

The National Authority of Environmental Licenses (ANLA): In charge of licensing and permitting for projects greater than 100 MW. Projects under 100 MW need to seek licenses and permits from the relevant Regional Authorities (CARs).[3][81]

Additionally, Indigenous Peoples in Colombia are represented by two main organizations on a national level: Organización Nacional Indígena de Colombia (ONIC) and Autoridades Indígenas de Colombia (AICO).[12]

Local Wayuu Leadership:
Due to the semi-dispersed clan structure of Wayuu culture, no single leader represents the community at large. Each local community has its own independent leadership, comprising the ancestral authority and traditional authority roles.[53] As a result, responsible consultative processes must include leaders from affected communities, which may range from a dozen to over 200 for large projects. Consultations have been complicated by a lack of understanding of the ancestral authorities and traditional authorities at play. While the government may appoint traditional authority in the region in the form of department governors, ancestral authority (called alaüla in Wayuunaiki, the mother language for Wayuu people) may be considered more legitimate in some communities and must be understood and considered during project consultations.[53][66]

Disputes between Wayuu community members, project developers, and government leaders may stem from discordance between ancestral and traditional authorities' ability to negotiate.[35] Wayuu communities are matrilineal, though political authority and representation falls onto the eldest maternal uncle.[46] According to one teacher and community leader from Ipapure, renewable energy developers have gone above ancestral authorities when offers were rejected, instead using the traditional authority of the Colombian government in order to seek approval.[35]

Related government papers

Colombian legal hierarchy is as follows:[71]

  1. The Constitution, human rights treaties, and treaties indicated by the Constitutional Tribunal
  2. Statutes, law decrees, legislative decrees, and international treaties ratified by Colombia
  3. National regulations


Colombian Constitution: Passed in 1991, the Constitution, which, relative to its previous iteration established in 1889, aims to decentralize the government, limit presidential powers, and recognize cultural and ethnic diversity present throughout. It also establishes a constructional court and ingrains human rights and humanitarian law, with the rights and obligations of citizens and the state as a whole. Unfortunately, many elements of the Constitution are largely ignored in practice.[72]

National Energy Plan 2020-2050: Outlines the long-term scenarios and planning for achieving public policy and energy goals, with a specific focus on energy supply, cost reduction, and environmental targets.[82]

National Development Plan 2023-2026 (NDP): Each presidential administration must develop its own National Development Plan, which is subsequently approved by the Congress of the Republic.[83] Released in early 2023, the most recent iteration of the NDP[84] calls for 1) using financial surpluses from coal and oil extraction to fund the energy transition; 2) adding 2,000 MW of non-conventional energy sources, namely wind and solar; 3) increasing land rehabilitation area to 1.7 million hectares; 4) reducing national deforestation by 20%; 5) increasing exports of non-mining, energy, and service sectors to 56.3% of total exports; 6) doubling investments in climate and energy research and development; and 7) mitigating 2.14 million tons of carbon dioxide in the transportation sector.[85]

National Scenarios for a Just Energy Transition: Published in July 2023 by the Ministry of Mines and Energy, this document lays out a roadmap for a just energy transition in Colombia.[86] It includes sections on:

  • energy demand in the industrial, residential and transport sectors
  • energy supply from coal, fossil gas, oil, hydrogen, and non-conventional renewables
  • greenhouse gas emissions
  • recommendations for public policy and implementation


Law 1715 of 2014: A key piece of legislation for promoting privately-owned, large-scale renewable ventures and regulating environmental impacts of energy projects, Law 1715 creates requirements and procedures for environmental impact statements and establishes an expedited assessment cycle for renewable energy projects. Additionally, Resolution 1312 of 2016 and Resolution 1670 of 2017 regulate environmental impact procedures for onshore wind and solar projects, respectively.[3][25]

Law 1955 of 2019: Along with Resolution 40060 of 2021, this legislation establishes a national renewable energy target of 10% of total electricity supply by 2023, excluding large-scale hydropower. Additionally, this law mandates that 1% of gross energy sales from wind and solar projects greater than 10 MW must be given to impacted populations, with 60% of that total going toward Afro-Caribbean and Indigenous communities and 40% toward municipalities. Upon reaching a 20% renewable energy share nationally, the revenue share given to impacted populations will increase to 2%.[3]

Energy Transition Law (Law 2099 of 2021): Building upon Law 1715 of 2014, the Energy Transition Law provides incentives for renewable energy projects. Incentives include 1) income tax deduction of 50% for of the total investment value, up to 50% of of taxable income, for up to 15 years; 2) VAT exemptions for imported equipment for renewable energy projects; and 3) accelerated depreciation of up to 33.33% for renewable energy investments.[3]

Resolution 40590 of 2019: Regulates competitive renewable energy auctions and their subsequent long-term contract agreements.[3]

Resolution 075 of 2021: Establishes a "one-stop shop" for renewable energy projects to access transmission infrastructure and creates a capacity reserve guarantee of USD $10/kW. This legislation builds upon Resolution 030 of 2018, which established simplified procedures for small-scale self-generators (installed capacities less than or equal to 1 MW) and distributed generators (installed capacities less than or equal to 100 kW).[3]

Resolution 40284 of 2022: Establishes rules for competition for offshore wind power projects.[3]

Decree 1915 of 2017: Allows renewable energy companies to pay up to 50% of their income tax in the form of development projects for local communities near projects. In La Guajira, companies like Enel have pursued projects to increase potable water access for Wayuu communities.[3][87]

Relevant political coalitions

Congreso de los Pueblos is a collection of more than 17,000 activists coordinating community-focused policies and campaigns. Founded in 2010, the Congreso de los Pueblos aims to create a common legislative agenda, called the "Mandate of Mandates," in order to create conditions for a dignified life for all Colombians. Using the Mandate as a foundation, the organization hopes to mobilize action to improve quality of life.[72][88]

The Congreso de los Pueblos and Marcha Patriotica, another social political movement, are the two largest social campaigns in the country and coordinate under the banner of the Agrarian Council.[72]

In addition, the Government of Colombia joined the Beyond Oil and Gas Alliance (BOGA) in August 2023, which convenes government leaders and stakeholders to coordinate on phasing out oil and gas production across member nations. Other member nations include Costa Rica and Denmark. Colombia's entry into the Alliance was applauded by representatives from the Permanent Council for a Just Energy Transition, Oil Change International, Carbon Tracker Initiative, Fossil Fuels Non-Proliferation Treaty, and Alianza Colombiana Libre de Fracking.[89]

Similarly, in September 2023, Colombia (along with Panama) joined the Powering Past Coal Alliance (PPCA), which brings together national and subnational governments, business leaders, and civil society organizations to accelerate the transition from coal to clean energy. Given Colombia's presence as a major exporter of coal, this move will have a significant positive impact and represents a landmark in the global shift away from coal.[90]

Colombia and the United Kingdom have collaborated on multiple climate-related projects. In May 2022, the UK launched 19 new and extended projects, totaling £7.8 million, under the UK Partnering for Accelerated Climate Transitions (UK PACT). These initiatives aim to support climate actions and the reduction of greenhouse gas emissions in Colombia. The funding covers a wide range of areas, including sustainable livelihoods, low-carbon policies, energy, nature-based solutions, mobility, and finance.[91] The work included in UK PACT is largely comprised of information and knowledge sharing, with the UK and Colombia collaborating on strategy to advance decarbonization of the latter country's power sector, building stock, and industrial processes while mobilizing local investments.[92]

Permitting

Environmental licenses are required for projects that may cause detriment to natural resources, landscapes, or the environment. Licenses need to be obtained from the National Authority of Environmental Licenses (Autoridad Nacional de Licencias Ambientales, ANLA) of the relevant regional environmental authority (in La Guajira, the relevant authority is the Regional Autonomous Corporation, Corpoguajira). Energy projects require environmental licenses for:[81]

  • Projects involving the construction and operation of a generation facility with a capacity greater than 100 MW
  • Exploration and use of potentially contaminating alternative energy sources with a capacity greater than 3 MW
  • Laying of lines with tensions greater than 220 kV
  • The generation of nuclear power


Environmental License applications may require two different studies: the Environmental Impact Study, which determines project feasibility, and the Environmental Diagnosis of Alternatives, which encompasses multiple options for the project and is intended to optimize resource management while minimizing negative impacts. While Environmental Impact Studies are always required for an Environmental License, the Diagnosis of Alternatives is only necessary for Energy, Hydrocarbons, Construction, and Ports/Maritime projects. Environmental Impact Studies must include an Environmental Management Plan. According to regulatory authorities, granting of environmental licenses must follow consultation with Indigenous communities and communities affected by the project, and consultations must be included in the Environmental Impact Study.

The following documents need to be submitted as part of the license application package:[81]

  • Environmental License form
  • Environmental Impact Study; must also be submitted to the relevant regional environmental authority, as necessary
  • Localization plan
  • Estimated costs of investment and operation
  • Power of attorney
  • Proof of payment for evaluating the license
  • Certificate of incumbency
  • Certificate of Ministry of the Interior on the presence of ethnic communities
  • Certificate of the Colombian Institute of Rural Development on the existence of territories with titles in favor of traditional communities
  • Copy of Filing before the Colombian Institute of Archaeology and History, as applicable


The environmental licensing process takes approximately 180 days, though Radar, a strategy utilized by ANLA, is intended to streamline the process and ensure that developers are aware of documentation that is missing or needs submission.[81]

Flow chart detailing the Environmental Licensing process in Colombia. DAA is defined as Environmental Diagnosis of Alternatives. EIA is defined as Environmental Impact Statement. ANLA is defined as the National Authority of Environmental Licenses. The flow chart is as follows: Does the project require a statement on the DAA? If so, proceed with the DAA Process. If not, file the EIA, application for an environmental license, and proof of payment of evaluation service. Does the project affect renewable natural resources? If so, file an EIA to the relevant regional authority and submit proof of application of environmental license to ANLA. Within 30 days, technical concept should be issued and filed with ANLA. If the project does not affect renewable natural resources, then within five days, the developer must issue a document to initiate the following steps. Are there requests for information from other entities? If no, move onto the next step. If yes, the relevant information is filed with ANLA. Are there requests for information from the relevant regulatory body? If no, declare the information is complete. If yes, file additional information requirements before declaring the information complete. Within 25 days, ANLA will issue a resolution granting or denying the environmental license.
The Environmental Licensing process in Colombia. DAA is defined as Environmental Diagnosis of Alternatives. EIA is defined as Environmental Impact Statement. ANLA is defined as the National Authority of Environmental Licenses.

Transmission

Current transmission resources

Map of Elecnorte's under-construction transmission lines in La Guajira. The project is comprised of two lines: one 76.5-km line running between Riohacha and Maicao, and one 62-km line from Riohacha to Cuestecitas. Originally published on Elecnorte's website.

In 2019, the International Finance Corporation (IFC), a World Bank Group entity, provided USD $90 million in funding to Elecnorte S.A.S ESP to construct, operate, and maintain 138 km of 110 kV regional transmission lines in La Guajira. The project is comprised of two lines: one 76.5-km line running between Riohacha and Maicao, and one 62-km line from Riohacha to Cuestecitas.[93]

In March 2023, La Unidad de Planeación Minero Energética (The Mining and Energy Planning Unit, UPME) announced the assignment of nearly 7,500 MW of transmission connections to the National Interconnected System following 843 requests. Of this capacity, 5,774 MW (~88%) correspond to solar projects, while 888 MW and 349.8 MW correspond to onshore and offshore wind, respectively. The Guajira-Cesar-Magdalena operation area had 1,620 MW of connection requests.[94]

According to UPME, connecting non-conventional renewable energy sources to the national grid will increase reliability, improve electrical flexibility and demand response, reduce emissions, reduce restrictions like network depletion, increase energy affordability, and lessen the impact of energy losses.[94]

New transmission needed for renewables

While Colombia's existing grid is relatively flexible, UPME has highlighted that cables delivering power from La Guajira to the country's central region need to be reinforced.[95] New transmission infrastructure will be needed to ensure the new generation slated for La Guajira can be delivered to ratepayers. As of March 2022, La Guajira had 1,054 MW of wind energy projects planned, which would be connected to the grid through use of 500 kV of AC transmission lines terminating at Cuestecitas.[96]

In its Transmission Expansion Plan 2022-2026 (Plan de Expansión de Transmisión 2022-2026), UPME outlines several transmission upgrades, including the Guajira-Cesar-Magdalena (GCM) project, which aims to guarantee access to the solar and wind projects in development in La Guajira. In order of estimated date of operation, the project is comprised of several components:[97]

  1. San Juan 220 kV substation, which is currently in service.
  2. Second Ocaña 500/230 kV – 360 MVA transformer, which is currently in service.
  3. La Loma substation (110 kV), along with two lines (La Loma - El Paso, 110 kV, and La Loma - La Jagua, 110 kV). Expected date of operation: April 2023.
  4. Copey – Cuestecitas line, 500 kV. Expected date of operation: August 2023.
  5. Copey – Fundación line, 220 kV. Expected date of operation: August 2023.
  6. Bonda – Río Córdoba line, 220 kV. Expected date of operation: November 2023.
  7. La Loma – Sogamoso line, 500 kV. Expected date of operation: November 2023.
  8. Second circuit Copey - Cuestecitas, 500 kV. Expected date of operation: March 2024.
  9. Distributed FACTS devices (DFACTS) on the Termoguajira – Bonda – Santa Marta 220 kV lines. Expected date of operation: September 2022.
  10. Second circuit Cuestecitas – La Loma, 500 kV. Expected date of operation: August 2024.
  11. Cuestecitas - La Loma line, 500 kV. Expected date of operation: August 2024.
  12. Collector Substation 1, 500 kV, and two independent lines from Collector 1 – Cuestecitas, 500 kV. Expected date of operation: August 2025.


In addition, Grupo Energía Bogotá (GEB) is developing a 72-km transmission line, Colectora 1, intended to connected seven wind farms (totaling 1,050 MW, or about 10% of Colombia's national electricity demand) in the Uribia-La Guajira region to the national grid. Initially intended for operation in November 2022, complications surrounding social permitting and local consultation procedures has led to the the project's three-year delay. Project construction was allowed to begin in 2023.[98]

To increase system stability, a 2022 transmission study conducted by TransGrid Solutions recommended connecting Collector 1 and Collector 2 using a single circuit 500 kV AC transmission line, which would be used for contingency and increased resilience. The report also recommends a 3000 MW bipole VSC HVDC system connecting Collector 2 to either the Primavera or Cerromatoso substation.[96]

Upgrading Northeastern Colombia's power grid to accommodate the significant generation expected to come online in the next decade will require reinforcements, upgrades, and equipment additions to limit transmission overloads, voltage limit violations, and outages. Given existing system constraints, UPME recommends using Voltage Source Converters in high-voltage DC systems (VSC HVDC) because:[96]

  1. Additional devices like synchronous condensers would not be required in La Guajira; short circuit capacity enhancements are not necessary under this recommendation.
  2. The VSC terminal in La Guajira, also called Collector 2, can regulate voltage and frequency, which means future wind farms can operate without having additional short circuit support.
  3. Black start technological capability can be used to start wind farms in La Guajira's collector system and can feed passive loads.
  4. Subsynchronous Resonance (SSR) issues are not expected, as with series compensated AC transmission lines.


TransGrid Solutions estimates that each kilometer of high-voltage (+/-600 kV) DC transmission line in Colombia costs approximately $330,000, with an additional $100,000 per kilometer for all land-based right-of-way needs. High voltage submarine cables for offshore wind projects cost an estimate $1.1 million per kilometer, and medium voltage cables run an estimated $250,000 per kilometer.[99]

Social and environmental impacts of new transmission

New HVDC projects encounter two primary challenges: 1) all stakeholders must be taken into account to ensure just outcomes, which can be particularly difficult if transmission line cross national boundaries (ex: connections from Colombia to Venezuela or Panama), and 2) capacity constraints for existing cable manufacturers. Offshore-capable cables are also more expensive, and few manufacturers are capable of producing them.[99] Additionally, any potential DC cabling routes must account for:[100]

  • Fishing activities: Construction can be timed around fishing seasons, and to avoid negative interactions with fishing gear (i.e. collisions) cables may be armored or buried.
  • Marine biological environment: Offshore cables must be routed to avoid protected areas and environmentally sensitive areas.
  • Marine physical environment: Cables must avoid boulders, sand waves, gravel trains, and steep slopes.
  • Marine archaeology: The coast of La Guajira features wrecks and war graves, which require special permissions from statutory authorities around minimal distance requirements.
  • Utility crossings: Seabed surveys must highlight existing installations to avoid overlap.
  • Magnetic fields and compass deviations: DC cables produce magnetic fields which may impact navigation tools. This impact decreases significantly with depth.


Even the most cost-effective transmission pathways in La Guajira, which would feature overhead DC cable lines if constructed, are expensive to produce. For example, an interconnection point at Primavera, which would increase allow for renewable connections in La Guajira, is expected to cost USD $2.132 billion: $1.275 for the construction of an additional converter, $257.4 million for the line and cable route, $78 million for rights-of-way considerations, and $521.3 million for anticipated losses.[99]

While La Guajira has significant renewable energy potential, there are complex dynamics at play that must be considered in transmission planning and community engagement. The energy transition thus far "has a major hurdle of procedural justice through social acceptance," wherein unjust legacy policies from conventional energy generation must be addressed.[101]

Ownership

Major owners of current fossil capacity

La Guajira's fossil fuel infrastructure is comprised exclusively of coal mining and generation. Both units of the Termoguajira power station (which is undergoing a transition from coal to clean energy power)[21] are owned by Gecelca SAESP,[15] the largest coal-fired power generation company in Colombia.[102]

La Guajira is home to Latin America's largest coal mine, Cerrejón, owned by the Swiss multinational Glencore International AG. Latin America's three largest new coal mine proposals — Cañaverales, Papayal and San Juan — are also in La Guajira, all owned by the Turkish-based Yildirim Holding AS and currently in various stages of permitting and pre-permitting.[103]

Major owners of prospective renewables

Major owners of prospective renewables in La Guajira include U.S.-based AES Corporation, which owns five in-development onshore wind projects; Colombia Solar Corporación Internacional SAS, which owns five in-development solar projects; Italy-based Enel Green Power, which owns three in-development wind projects; and Colombia-based Grupo Argos, which owns four in-development onshore wind projects.[13][14]

Additionally, Enel Green Power SPA and ISAGEN Energía Productiva own onshore wind projects that are currently in operation, totaling 52 MW.[13] BlueFloat energy is pursuing a large-scale (825 MW) wind farms off the coast of La Guajira,[104] and EDPR was awarded two onshore wind projects within the Department.[105]

Finance

In 2021, renewable energy investments in Colombia reached USD $952 million; 71% was directed toward wind energy, while 29% supported solar.[3] An estimated $820 billion will be required annually by 2030 to decarbonize power systems.[106]

Potential providers of wind and solar finance

Public Finance

The Colombian Government is a major provider of renewable energy financing. The Fund for Non-Conventional Energy and Efficient Energy Management (FENOGE) provides financing for energy efficiency, conservation, and sustainable energy projects.[107] FENOGE provides both loans and grants for plans, projects, and programs (PPP) that satisfy at least one of the following criteria: 1) the PPP cannot be completed commercially, 2) the PPP is proposed by a public entity operating on a national or provincial level that does not have the budget to complete it, 3) direct beneficiaries are low-income or working-class, 4) the PPP aligns with existing laws, and 5) the applicant cannoy be under investigation for or convicted of any crimes.[108] Recent efforts of FENOGE in La Guajira largely focus on electrifying and upgrading schools and hospitals.[109]

The General Royalties System collects royalties from extractive industries and may finance renewable energy projects, as well as the participation of subnational entities and Indigenous territories in renewable energy projects. FY23-24 saw a budget of USD $31.3 billion for the General Royalties System, which was allocated across departments and territories based on need.[110] In addition, the Instituto de Planificación y Promoción de Soluciones Energéticas para Zonas No Interconectadas (IPSE), or Institute of Planning and Promotion of Energy Solutions for Areas Not Interconnected, maintains an energy access fund focused on rural electrification, which may encompass renewable energy development. Both of these systems are operated by the Government of Colombia.[3]

Various international development banks have provided financing for projects and programs focused on advancing renewable energy deployment across Colombia, including the Inter-American Development Bank (IDB), which provided USD $91 million in 2017 for projects working to improve energy access and renewables development, as well as a credit line equal to USD $45 million for clean energy projects.[3] IDB provided no funding for specifically renewable energy development in Colombia in 2018, the last year tracked in IDB's climate finance databases.[111] The Inter-American Development Bank provides both loans and grants. Grants are typically reserved for capacity building directed toward organizations, whereas loans support economic, development, and social projects across sectors. Only certain countries (currently Guyana, Honduras, and Nicaragua) qualify for concessional loans.[112]

In February 2023, Climate Investment Funds approved a highly concessional $70 million funding plan to support Colombia's energy transition, accelerate and scale clean energy transmission, advanced metering, and other efforts to bring on renewable energy with flexibility, affordability, and resilience in mind. The funds will improve rural access to electricity, expand electric vehicle infrastructure, scale battery storage technologies and public transportation networks, and finance feasibility studies for green hydrogen projects. This funding is part of a larger funding plan administered by the Inter-American Development Bank, which is estimated to mobilize more than $280 million in capital.[106] CIF investment in Colombia are administered through the Clean Technology Fund (CTF), and as of June 2024, the country's CTF investment plan focusing on transport, renewable energy, and energy efficiency was valued at $92 million.[113]

In addition, Germany-based KfW financed a EUR €200 million development loan (in combination with funding from the Government of Germany) to accelerate Colombia’s energy transition.[114][115]

Private Finance

The United Kingdom and Colombia are collaborating on an initiative called the Climate Finance Leadership Initiative (CFLI) Colombia. This initiative is led by UN Special Envoy for Climate Ambition and Solutions, Michael Bloomberg. CFLI convenes leading companies to mobilize and scale private capital for climate solutions. It will also build upon existing bilateral collaboration on green finance delivered through the UK-Colombia Partnership for Sustainable Growth, aiming to catalyze more private investment.[116]

In March 2023, the UK Sustainable Infrastructure Programme (UKSIP) provided support for Inter-American Development Bank (IDB) Invest projects. This support is expected to raise over £150 million in private financing for the development of two solar power plants and the purchase of 400 electric buses. The countries benefiting from this program include Mexico, Colombia, Peru, and Brazil.[117]

Public-Private Partnerships

Findeter operates the Reactiva Colombia Program, a public-private partnership which funds territorial entities, companies, and nonprofit organizations to develop infrastructural projects, including renewable energy.[118]

Other

Wind, solar, and biomass energy projects receive special tax incentives. According to the U.S. International Trade Administration, the three most important incentives established in the National Development Plan are: 1) extending the period (from 5 to 15 years) to use 50% of investments in generation equipment for non-conventional renewable energy and energy efficiency for deductions for income tax; 2) value-added tax (VAT) exclusion on the purchase of solar panels, inverters and charge controllers; and 3) 10% of the energy sold to end-users by the distributor should come from non-conventional renewable sources.[25]

After an award-less auction in February 2019, Colombia's second renewable energy auction took place in October 2019, with contracts awarded to nine wind and five solar projects (1.3 GW total). While both attempts auctioned energy (MWh) rather than installed capacity (MW), the second auction included more complex requirements for qualified bidders; leveraged a double-sided, sealed-bid auction to identify buyer-seller combinations that minimize contract costs for consumers; featured a reduction in some commitment bonds, following stakeholder feedback; extended power purchasing contracts from 12 to 15 years; and shifted from take-and-pay contracts to take-or-pay, which obligates auction buyers to paying the contracted amount to generation companies regardless of actual consumption.[119]

Articles and resources

Related GEM.wiki articles

Cañaverales Mine

Cerrejón coal mine

Colombia and Coal

Energy profile: Colombia

Papayal Mine

References

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  3. ↑ 3.00 3.01 3.02 3.03 3.04 3.05 3.06 3.07 3.08 3.09 3.10 3.11 3.12 3.13 3.14 3.15 3.16 “Solar and wind power in Colombia: 2022 policy overview,” Stockholm Environment Institute, March 2023
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  5. ↑ 5.0 5.1 5.2 5.3 5.4 “Considerations for a just and equitable energy transition,” Stockholm Environment Institute, May 2022
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  7. ↑ 7.0 7.1 “Meta 6 GW al 2026: Colombia incorporaría 586 MW fotovoltaicos este año y tiene 23,5 GW en cola, sólo el 13% en La Guajira,” Energía Estratégica, October 9 2023
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  37. ↑ Colombia’s Nickel Reserves: A Blessing and Curse Wilder Alejandro Sanchez, Geopolitical Monitor, July-19-2023
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  40. ↑ “Renewable energies in Colombia: All that glitters is not gold,” International Work Group for Indigenous Affairs, February 11 2021
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  73. ↑ “Mining in Colombia: overview,” Thomson Reuters Practical Law, March 1 2021
  74. ↑ “Ministry of Mines and Energy Colombia/ Ministerio de Minas y Energía (Colombia),” Development Aid, May 25 2023
  75. ↑ “World Energy Investment 2024,” International Energy Agency, June 2024
  76. ↑ “Ministry of Economy established Committee of Ministers for Sustainable Productive Development,” Ministerio de Economía, Fomento y Turismo, January 6 2023
  77. ↑ “Quiénes Somos,” Planning Unit for Mines and Energy, Retrieved August 25 2023
  78. ↑ “Our history,” Comisión de Regulación de Energía y Gas, Retrieved August 25 2023
  79. ↑ “Brazil and Colombia: The emerging powers of offshore wind?,” Dialogue Earth, August 27 2024
  80. ↑ “The World Bank and EPRI partner with XM in Colombia to re-imagine resilience,” EPRI Journal, May 5 2022
  81. ↑ 81.0 81.1 81.2 81.3 “Manual of Environmental Licensing in Colombia,” ProColombia and the National Authority of Environmental Licenses, Retrieved August 25 2023
  82. ↑ “​​Plan energético nacional,” La Unidad de Planeación Minero Energética, Retrieved September 1 2023
  83. ↑ “An Analysis of Colombia’s National Development Plan,” Global Financial Integrity, April 20 2023
  84. ↑ "Plan Nacional de Desarrollo 2022-2026". Departamento Nacional de Planeación - DNP. Retrieved 2023-11-13.{{cite web}}: CS1 maint: url-status (link)
  85. ↑ “Principales Metas del PND 2023-2026,” Government of Colombia, Retrieved August 24 2023
  86. ↑ "Escenarios Nacionales Transición Energética Justa: Rutas que nos preparan para el futuro" (PDF). Ministerio de Minas y Energía. July 2023.{{cite web}}: CS1 maint: url-status (link)
  87. ↑ “Clean water for more than 3,000 members of Colombia’s Wayuu community,” Enel Green Power, February 25 2021
  88. ↑ “¿Qué es el Congreso de los Pueblos?,” Congreso de los Pueblos, Retrieved August 21 2023
  89. ↑ “Colombia joins the Beyond Oil and Gas Alliance and confirms international climate leadership,” Oil Change International, August 31 2023
  90. ↑ “Colombia and Panama Join Growing Coalition of Countries Committed to Phasing Out Coal,” Powering Past Coal Alliance, September 19 2023
  91. ↑ Colombia-UK PACT GOV.UK, May-19-2022
  92. ↑ “Energy transition action plan (ETAP) between the UK and Republic of Colombia,” The United Kingdom's Department for Energy Security and Net Zero, April 23 2024
  93. ↑ “Elecnorte Guajira Transmission Lines,” International Finance Corporation, December 23 2019
  94. ↑ 94.0 94.1 “Con asignación de 7.493 MW de solicitudes de conexión de proyectos de generación de energía eléctrica, Gobierno Nacional habilita Transición Energética Justa,” La Unidad de Planeación Minero Energética, March 6 2023
  95. ↑ “Colombia Power System Flexibility Assessment,” International Renewable Energy Agency, October 2018
  96. ↑ 96.0 96.1 96.2 “Task 1 – Selection of HVDC or HVAC Transmission,” TransGrid Solutions, March 25 2022
  97. ↑ “Plan de Expansión de Transmissión 2022-2026,” Unidad de Planeación Minero-Energética (UPME), Retrieved August 31 2023
  98. ↑ “Collector Line achieved all consultations for its construction,” Portafolio, June 28 2023
  99. ↑ 99.0 99.1 99.2 “Task 2 – Selection of HVDC Technology,” TransGrid Solutions, August 3 2022
  100. ↑ “Environmental Aspects of HVDC Transmission Systems,” TransGrid Solutions, June 29 2022
  101. ↑ “Assessing elements of energy justice in Colombia: A case study on transmission infrastructure in La Guajira,” Stockholm Environment Institute, September 2022
  102. ↑ “Who We Are,” Gecelca, Retrieved August 21 2023
  103. ↑ Global Coal Mine Tracker, Global Energy Monitor, April 2023 release.
  104. ↑ “BlueFloat steps up Colombia offshore wind foray,” BNAmericas, January 30 2023
  105. ↑ “EDPR's projects in Colombia,” EDP Renewables, Retrieved November 30 2023
  106. ↑ 106.0 106.1 “CIF Approves $70 million to Accelerate Colombia's Integration of Clean energy Into the Power Grid,” Climate Investment Funds, February 2 2023
  107. ↑ “Quiénes somos,” Fondo de Energías No Convensionales y Gestión Eficiente de la Energía, Retrieved August 23 2023
  108. ↑ “Criterios de elegibilidad,” Fondo de Energías No Convensionales y Gestión Eficiente de la Energía, Retrieved May 30 2024
  109. ↑ “Search results,” FENOGE, Retrieved June 3 2024
  110. ↑ “$31,3 billones es el presupuesto de regalías para 2023-2024 aprobado en pleno por el Congreso de la República,” Government of Colombia, November 29 2022
  111. ↑ “IDB Climate Finance 2018,” Inter-American Development Bank, February 15 2024
  112. ↑ “What Does the Inter-American Development Bank Do?,” Council on Foreign Relations, October 31 2023
  113. ↑ “Colombia,” Climate Investment Funds, Retrieved June 3 2024
  114. ↑ “Towards the energy transition: KfW supports Colombia’s comprehensive policy reforms,” KfW, July 22 2022
  115. ↑ “Our financial products,” KfW, Retrieved May 30 2024
  116. ↑ Joint statement by the Government of Colombia, the UK government, and the CFLI on mobilizing climate finance in Colombia GOV.UK, May-19-2022
  117. ↑ New UK partnership to tackle climate change in Latin America UK.GOV, March-1-2023
  118. ↑ “Programa Reactiva Colombia,” Findeter, Retrieved August 23 2023
  119. ↑ “Renewable Energy Auctions in Colombia,” U.S. Agency for International Development, Retrieved August 28 2023
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