Renewable energy: one of the best destinations for your investments in Colombia
Getting into Colombia's economy is seeing the energy transition revolution walking steadily in front of you. The country has been one of the great promoters of the Sustainable Development Goals set by the United Nations (UN), and the seventh of these goals is related to clean and renewable energies: it’s expected that access to this kind of energy will be guaranteed by 2030.
The country has decided to be part of this transformation in order to keep its natural resources healthy and grow with them. An example of this is the National Development Plan, which exposes the country's intention to promote energy transition (by the use of clean energy sources) and show Colombia's potential in this area thanks to its geographical position, which gives massive access to sun, water and wind.
Colombia advances in the renewable energy generation
The sun’s power
Solar energy is one of the cleanest and most effective methods to obtain energy; it uses one of the most powerful sources available to humankind: the sun.
Colombia has made progress in solar plants’ construction and, for example, in January 2023 Ecopetrol inaugurated a new plant with a 26 MWp capacity and more than 49 thousand solar panels with bifacial technology.
The company also has two other plants that, in December 2022, caused a reduction of more than 32,000 tons of CO2 and savings of more than $22 billion.
The wind’s strength
According to the Ministry of Mines and Energy information, Colombia ranks in the top 10 wind energy systems potentials in Latin America and the Caribbean. Besides, according to studies cited by the same Ministry, the country is one of the top three emerging markets worldwide that will add offshore wind capacity. This puts Colombia in a privileged position and makes this industry attractive to anyone interested in sustainable investments.
In addition, there are six licensed wind projects, which will allow the energy production potential in La Guajira to reach 1900 megawatts. This will give Colombia new competitive advantages in addition to those that the country already has due to its geographic position and the development of innovative green technologies, which will allow the production of wind energy from sea (offshore) and land.
The water’s energy
Colombia is powered by hydroelectric energy. According to the International Hydropower Association (IHA), it represents the 70% of electricity supplied in Colombia. This puts the country in an enviable position, as it shows its progress in energy transition and its renewable energy storage capacity.
In addition, the country has worked in recent years on the development of large-scale hydroelectric power projects, which will allow this method of electricity production to have greater scope. An example of this is Hidroituango, which, according to the mayor's office of Medellín, is one of the 10 largest power stations in South America and is expected to supply 17% of the electricity consumed in Colombia.
Green hydrogen: the energy of the future
Colombia has the potential to develop the fourth most competitive green hydrogen in the world, according to the International Renewable Energy Agency (IRENA), which is used to generate and store renewable energy.
According to the representative of Energías Renovables Viridi, Juan Sebastián Poveda, this is thanks to Colombia’s environmental conditions, since the amount of sun, wind and water in the country makes the production of green hydrogen easier.
For this reason, Colombia has prioritized green hydrogen progress at national level and has taken this interest to international scenarios. An example of this is the meeting between the Colombian and the German governments, in which cooperation agreements were reached to achieve progress in this industry, which shows the confidence that the country has on this issue.
Why should you invest?
Colombia has an undisputed potential in the development of renewable energy production. The country has made energy transition one of the key points of its development in the coming years and this gives the renewable energy industry the support of private and public sector.
Green energy and energy transition appears in the recently approved National Development Plan and the country has already developed important incentives for sustainable investments, including those aimed at renewable energies, providing tax benefits in some cases.
Don't miss the opportunity to invest in one of the most promising industries in Colombia and learn more about renewable energy investments here.