Drought, debt and delays: Will the lights go out in Colombia?

A deepening financial crisis and supply concerns have left Colombia facing an imminent risk of electricity rationing, according to a new BNamericas report. 

Comptroller general Carlos Rodríguez has warned the sector faces a multi-faceted "liquidity crunch" impacting the entire energy supply chain, said the report, entitled: Crisis and Opportunity: An Inflection Point for LatAm Power Grids.

A major challenge is the strained finances of distributor Air-e, which has left electricity generators with growing debts as they comply with a decree to continue supplying power without payment.

Additionally, an escalating natural gas shortage threatens to disrupt fuel supplies to thermoelectric plants, a crucial source of electricity in times of low rainfall that hits hydroelectric operations. Thermoelectric generators, reliant on gas and coal, supply up to 25% of Colombia’s power during such periods. 

Further compounding the crisis, delays to solar and wind projects are stalling Colombia’s transition to sustainable energy sources. A recent report by the renewable energy association SER Colombia revealed that nearly half of the country’s planned wind and solar projects are behind schedule.

Power generators’ association Andeg warns that Colombia could face an energy shortfall of 4-6% of total demand by 2027, with an estimated annual gap of 4-5TWh, equivalent to a capacity deficit of up to 2,000MW.

"Immediate and long-term strategies are essential to secure Colombia’s energy future," said Ricardo Ortega, CEO of Grupo Energía Bogotá.

The full report can also be seen here.