Colombia shared energy storage policy adjustment document

How does Colombia operate a reliability charge?

Source: CREG (2022). Colombia operates a reliability charge based on four elements. The first is a call option for firm energy contribution, activated when the spot price exceeds a monthly scarcity price set by the regulator. The call option allows load to hedge price spikes and the system operator to identify hours of tight supply.

How does Colombia ensure security of electricity supply?

The main mechanism to ensure security of electricity supply is Colombia’s reliability charge, which has also seen increasing participation from renewable energy capacity since 2019. The scarcity pricing formula was reformed in 2015/16 and today reflects the cost of the oldest diesel generator.

What Reindustrialisation policy is pursuing in Colombia?

Colombia is pursuing a reindustrialisation policy with the aim to shift from an extraction economy to a productive and sustainable knowledge economy. In parallel to the elaboration of the PND, the government is preparing a national just energy transition road map.

Why did Colombia adopt new security of gas supply rules in 2021?

In 2021, the Colombian government adopted new security of gas supply rules. Resolution 40280 of 30 August 2021 updated the framework for the MME to regulate gas demand constraints and rationing of the supply of natural gas to satisfy essential demand of priority consumers. refineries.

How does the IEA support Colombia's energy transition?

The IEA supports Colombia’s agenda for a just energy transition. Experience from the IEA’s Global Commission on People-Centred Transitions provides useful learnings for the government of Colombia, helping to boost local economic benefits and the transition to clean energy and new job opportunities.

Does Colombia have a coal policy?

From 2019 to 2021, domestic energy supply of coal decreased by 36% and the use of coal for electricity generation fell by 45%. Coal resources belong to the state and their exploitation is controlled by the MME. Colombia’s energy and climate policy strategies do not include specific phase-out targets for coal production or consumption.