economy and politics

Experts urge to reconsider points of the energy transition

Irene Vélez, former Minister of Mines and Energy

With an extensive letter and after 11 months in the Ministry of Mines and Energy, Irene Velez He stepped aside to face the investigations announced by the Attorney General’s Office and the Prosecutor’s Office against him, and arguing that it seeks to prevent them from interfering with the Government program.

In the letter, Vélez took stock of his management during his time at Minminas. In it, he highlighted that 100% of the prior consultations of the Collector transmission line project were formalized; the implementation of the ‘Rate Justice Plan’ to stop the rise in electricity rates; the basic documents for the construction of the energy transition roadmap; among others.

Irene Vélez, former Minister of Mines and Energy.

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With the departure of Vélez, Whoever takes office will have to ensure that the activities that are already underway continue to be carried out and, in addition, what thick tasks that are pending enter that agenda.

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For Alejandro Castañeda, director of the National Association of Generation Companies (Andeg)there are some important points that require attention in the short and medium term.

He points out that, with the imminent arrival of the El Niño phenomenon, it is necessary to carry out a coordinated work between all the actors that make up the institutional framework of the mining-energy sector. This with a view to seeking appropriate solutions to this problem.

Another focus is the execution of transmission projects that register delays and the need to create new generation capacity, so that there are no energy deficits in the future. In this sense, he spoke of the importance of completing the auction of the reliability charge that is currently open.

(Irene Vélez leaves the Ministry of Mines: with a message she confirms her departure).

In terms of electrical energy, he also highlighted that, as it is one of the sectors in which natural gas and coal are consumed the most for supply, the addition of new oil and gas contracts should be reconsidered, since having these fuels also reliability of electricity is ensured.

For his part, Julio César Vera, director of the XUA Energy Foundation and former director of Hydrocarbonshighlights that among the challenges that still need to be worked on are the issue of self-sufficiency, both in oil and gas, and along the same lines, the incorporation of new reserves of these resources, as well as the promotion of investment.

energy transition

energy transition

PHOTO: Courtesy

Regarding fuels, Vera emphasizes that the reliability and continuity of its supply in the country must continue to be guaranteed, as well as advancing in the process of dismantling gasoline and diesel subsidies due to the economic and social effects they represent.

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In addition, he points out that in command of the portfolio “a person is needed to give the sector peace of mind about the policies that are going to be developed and to generate confidence in terms of their experience and knowledge regarding what must be done to overcome situations such as the current ones, associated with the El Niño phenomenon, the delays in projects associated with the energy transition, the fall in the balance of oil and gas reserves and the decision not to develop new exploratory activity, among others”.

He former Minister of Mines and Energy, Amylkar Acostasays that another of the challenges is to end the interim Creg, “since the appointed commissioned experts are in charge, which is a terrible sign for the sector”.

Acosta also points out that it must be defined whether or not new hydrocarbon exploration and exploitation contracts will be signed, given the ambiguity that exists on the subject in the government cabinet.

Experts agree that some aspects must be reconsidered so that a fair, gradual and orderly energy transition can take place.

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What is happening to European countries cannot happen to us, which by inserting and making too rapid transitions towards renewable energies end up having very high costs. In a country like ours with energy costs that today are a quarter of those in Europe, we cannot afford to have much higher rates than we already have”, pointed out the director of Andeg.

From the hydrocarbons sector, the director of the XUA Energy Foundation stresses the need for the Government finally issue the roadmap to carry out this process, which was announced to be presented in the first quarter of 2024.

In addition, he explains that with the arrival of the new minister or minister, an additional and broader discussion with the sector will be required, with the aim of carrying out concerted and articulated work between the actors involved.

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It is a very important document for the country and it is essential that it go well. That they have more construction work and not simply confrontation, as at some point the sector could feel that it was taking placeVera declared.

On this last point, former Minister Acosta also agrees, who affirms that the establishment of a roadmap is urgent and that the panorama in this matter is still worrisome because “does not advance, accelerates in neutral”.

He adds that this late pace has also meant a setback for the country compared to other nations in the world, referring to the most recent ranking in this matter carried out by the World Economic Forumin which Colombia went from 29th place in 2021 to 39th this year.

energy transition

Energy transition.

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The biofuelsthe consolidation of the gas sector agenda, the discussion of the margins of the fuel distribution chain in the countryand the new tariff framework for transportation by oil pipelines, are part of the fundamental points that the experts consulted indicate that should be included in the agenda. Added to this is the definition of the policy guidelines to implement the energy communities contemplated in the National Development Plan.

JESSIKA PAOLA RODRIGUEZ M.
Portfolio Journalist

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