The CEFIM programme supports the Colombian government and stakeholders to accelerate its clean energy transition by strengthening the enabling conditions and indentifying the financing mechanisms to scale-up finance for clean energy infrastructure.
The Colombia programme has delivered a set of activities to facilitate investment mobilisation in grid-connected renewable energy and bioenergy projects.
Additionally, implementation support activities such as regional peer-learning events and policy dialogues have been organised to facilitate exchange with domestic and foreign investors to help unlock finance and investment in renewable energy and bioenergy projects.
Colombia has set forth a number of important policy strategies to achieve its clean energy ambitions, including the 2018 Green Growth Policy, the 2019 National Circular Economy Strategy and the 2022 Energy Transition Policy. These strategies all note the role sustainable bioenergy and waste-to-energy can play in supporting decarbonisation objectives. This report looks at the enabling conditions to encourage development of these clean energy solutions and mobilise the necessary finance and investment. Through five case studies from Brazil, Chile, Colombia, India and Turkey, the report also considers the enabling environment and lessons learnt from bioenergy developments in different countries.
This report considers critical challenges to bioenergy development in the country and looks at strategic actions the Government of Colombia can take to attract investment in the country’s considerable bioenergy resource potential.
Colombia has prioritised the use of renewable energy to expand and improve electricity services for its population in zones non-interconnected to the national grid. Recent policies and regulations have supported this ambition with successive measures to strengthen investment conditions for distributed renewable energy, like standalone solar photovoltaic (PV) solutions and hybrid solar PV mini-grids. Still, the distributed renewable energy market in non-interconnected zones is relatively immature, reflected by the high costs for connecting new users. New business and financing models will be critical to bringing down the cost of renewable energy technologies, accessing private equity and debt in larger volumes, and ultimately progressing towards replacing existing inefficient and polluting diesel generation systems. Building on international experiences, this paper discusses approaches to strengthening investment conditions, looking at support mechanisms and de-risking instruments used elsewhere, which can help bridge the financing gap in Colombia.
ProColombia - investment opportunities in renewable energy
UMPE project registry - registration of power generation projects
CONPES - national strategies under the National Council for Social and Economic Policy