Given its reliance on large hydroelectric power generating plants, Colombia to date has offered relatively weak policy support to other forms of low- or zero-carbon energy. The introduction of a renewable energy and energy efficiency law in 2014 may mark a turning point, as the industry awaits further regulation and incentives.
Previously, the country set a target of 6.5% on-grid and 30% off-grid non-large hydro renewable power consumption by 2020. In addition, Colombia enforces blending mandates of 10% biodiesel with conventional diesel and 10% ethanol with conventional gasoline.
As of 2014, Colombia had a total installed capacity of 15.5GW. In that year, large hydro represented 65% of the 64TWh generated, with natural gas as the second most important source, with 29% of generation. Clean energy accounted for 6% of generation, mostly coming from small hydro, and to a lesser degree from biomass and wind.
Published in October 2001, Law 697 established Colombia’s clean energy mandate, with distinct targets for on-grid and off-grid generation. The target for 2015 was set at 3.5% on-grid and 20% off-grid renewable generation, and both were surpassed by 2012. The longer-term 2020 goals also look to be easily achieved.
Under a December 2002 law, biomass and wind energy generators with projects registered under the UN’s Clean Development Mechanism (CDM) may receive income tax and import duty exemption. Meanwhile, a May 2014 law regulates the integration of clean energy technologies on-grid and off-grid and sets tax incentives for clean energy generation. It also created a fund for the financing of clean energy and energy efficiency programs.
The capital city, Bogotá, in 2011 enacted a law exempting electric vehicles (EVs) from circulation limits applicable to conventional vehicles based on license plate numbers and created a five-year pilot programme for EV taxi deployment.
Score Summary
Colombia’s overall rank in Climatescope 2015 was 19th, compared with its 16th-place 2014 position. Its quantitative ratings were little changed: 1.39 in 2015 versus 1.33 in 2014.
Colombia’s regression occurred despite a notable improvement in the Growth Rate of Installed Capacity Indicator of Parameter I. Colombia also recorded a positive Growth Rate of Power Demand Indicator in Parameter I in 2015.
On Enabling Framework Parameter I, Colombia in 2015 registered a 12-place improvement to 26th place. Its 2015 Parameter I score of 1.23 compares with a 2014 score of 0.98.
On Clean Energy Investment and Climate Financing Parameter II, Colombia surrendered seven positions to 28th. Its Parameter II scores were 0.48 in 2015 and 0.66 in 2014.
On Low-Carbon Business & Clean Energy Value Chains Parameter III, Colombia in 2015 bettered its 2014 ratings by climbing two positions in 2015 to 22nd place at 2.05 from 1.99.
Colombia stayed even with its fifth-place finish on Greenhouse Gas Management Activities Parameter IV. Its 2015 score of 2.97 was not significantly changed from 2014’s 2.95.