Feb 06, 2023
Colombia has set a target of reducing its greenhouse gases emissions by 51% before 2030. To achieve this, the country has launched a green energy transformation, building on existing and potential hydropower infrastructure and growing solar and wind power development. In 2021, solar photovoltaic generating capacity increased by 75 MW, accounting for about 58% of new generation capacity, and over the next few years, projects adding up to 1,322 MW of photovoltaic and 2,309 MW of wind capacity are expected to become operational. But there’s a missing piece: Colombia’s energy transmission infrastructure is not fit for purpose, and non-hydro renewable sources still represent less than 2% of installed generation capacity.
To overcome these challenges and accelerate their green transformation, Colombia will now benefit from the very first investment of Climate Investment Funds’ (CIF) Renewable Energy Integration program (REI) and access $70 million in highly concessional capital. The program will finance clean energy integration solutions like advanced metering, energy storage, and other efforts designed to make the use of variable renewable energy more flexible, cost-efficient, and resilient. Through these investments, Colombia expects to achieve 1.6 Mt CO2eq emissions reductions while providing nearly 20,000 households with increased access to clean energy and achieving total electric system cost reductions.
Much needed rural electrification projects will be funded under the plan, with capabilities for energy consumers to become energy producers and the promotion of energy communities. Colombia also wants to embark on a massive electrification of transport by deploying rapid and fast charging stations, electric vehicles, and electric urban transport. Additionally, Colombia will undertake feasibility studies on green hydrogen production capacities. Prepared in partnership with the Inter-American Development Bank, the investment plan emphasizes community participation, integration of gender and diversity, and a just energy transition.
Colombia’s investment plan is the first endorsed under REI, a program created to enhance the flexibility of energy systems to facilitate the penetration of renewables in low- and middle-income countries. Countries in the developing world often lack the capacity for such flexibility, which is key to achieving climate goals, and REI provides funds to address technical, policy, and market barriers through national and regional investment plans. The program promotes specific investments in enabling technologies, infrastructure, or business models that may demonstrate the benefits of renewable energy approaches in developing countries.
