International Agency highlights the largest investment in energy in Colombia during 2023

Three countries in the region have shown a relevant trend in the increase of its investment for the energy transition, among which is Colombia together with Chile and Brazil, specifically in matters of electricity transmission networks.

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Thus he pointed out the International Energy Agency (IEA) in its ‘World Energy Investment’ report, in which it highlighted that the region and the world are facing challenges, but significant boosts have been seen in terms of resources allocated for investment in new infrastructure energy.

“Investment in Latin America has almost doubled since 2021, notably in Colombia, Chile and Brazil, where spending doubled in 2023” says the report. Although these data are positive, the main investment in energy worldwide has been seen in China, which accounts for 80% of the capital. This, according to the Agency, reflects that the trend is positive, but Latin America still has investment levels”worryingly” low.

The international entity highlighted that the dAvailability of electrical networks is the bottleneck for the energy transition, that has managed to have a change in trend after investment in this regard was relatively stagnant. By 2024, the entity expects US$400 billion to be allocated, driven by Europethe United States, China and parts of Latin America.

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In the region the case of Brazil stands out, since during 2023 a record 10,500 kilometers of networks were auctioned, for more than US$8,000 million.

However, the international entity also highlighted that Colombia and Panama are focuses of interest thanks to the progress made in interconnection plans. This would allow Central American countries to connect with South America through Colombia.

It is worth highlighting that currently there is already an interconnection between Ecuador and Colombia, which could be extended to other Andean nations, thanks to the advanced conversations, for several years, for the creation of an Andean Electricity Market, which would also connect Peru and Chili.

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Now, the interconnection with Panama is under analysis to understand what would be the best options to launch the line, since it could have an underwater part. However, this is part of what is being evaluated.

In fact, It has not been possible to present the Environmental Impact Study before the National Environmental License Authority (Anla) for the underwater laying that had been drawn, since a reserve area was expanded.

The report from the International Energy Agency also indicated that in Latin America and the Caribbean it stands out that in the region there has been a strong push for renewable energies within the framework of the energy transition. However, the proportion of investments between fossils and renewables remains below half the world average during 2023.

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This since 35% of energy resources are for non-conventional renewables, the other 55% is for hydrocarbons and fossils and the remaining 10% for final use.

The cases of Brazil and Colombia were highlighted in the entity’s report, particularly due to the push for offshore wind energy. As recalled, Colombia launched the first round of this technology last year, which has had a series of modifications, some of which were announced in recent days.

He The Ministry of Mines and Energy indicated that with this competitive process it hopes to receive proposals for an installed capacity of between 1 and 3 gigawatts. and an estimated investment of close to US$1,000 million.

It is projected that companies will have temporary occupation permits to carry out all the processes prior to the construction and operation of these parks.

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Juan Carlos Bedoya, head of the Ministry’s Regulatory Affairs Office, stated that the goal is for the country to have in its matrix about 7 gigawatts of energy from this source by 2040.

The Agency highlighted these efforts, although it noted that Some situations need to be improved to meet decarbonization objectives and the permeation of less emissions-intensive technologies.

“Efforts to reduce the cost of capital will be critical and will require improving the economic case for clean investments, while reducing macroeconomic risks.”, concludes the report.

DANIELA MORALES SOLER
Portfolio Journalist