Colombia | Situation of the Colombian electricity sector

Summary

The Colombian electricity system stands out for its renewable matrix, high coverage, and regional resilience. Demand is growing steadily and supply is gradually advancing, in a context where diversification of sources and thermal backup will be key to maintaining reliability.

Key points

• Key points:
• Colombia has high electrical coverage and outstanding environmental sustainability performance thanks to its clean energy matrix. However, per capita consumption is low compared to the rest of the region, and access gaps persist in rural areas, where more than 1.3 million homes still do not have service.
• Demand is growing steadily at around 3% per year, driven by urbanization and electrification. About 70% of consumption comes from households and small businesses, with a strong territorial concentration in the most urban departments. Unregulated demand is located where the country's industrial and mining base is located.
• Supply is dominated by hydroelectricity (64.5% of capacity), with a strong concentration in a few operators and large power plants. Generation capacity has grown by 2.2% per year over the last two decades, with recent contributions from solar projects.
• Thermal generation acts as a structural backup when hydroelectric contributions fall during El Niño episodes. In the last two years, the use of imported gas in this type of generation has increased.
• The UPME projects that demand will grow by about 2.5% per year and capacity by about 3%. Under neutral climatic conditions, the balance would be consistent with these projections; a new El Niño around 2027–2028 would reduce the firm energy margin and increase the use of thermal generation and imported gas.

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