Colombia proposes higher-income households and companies to assume government debt to power distributors at risk of closure, requiring congressional approval. The current debt stands at 3.1 trillion pesos, with concerns about future power shortages and blackouts due to project delays. The government aims to integrate 6GW of clean energy into the grid by August 2026, seeking to ensure energy security.
Colombia’s Energy Minister, Edwin Palma, has put forth a proposal for higher-income households and corporations to assume the government’s debt towards power distributors, as several utilities face potential closure. This initiative requires approval from Congress to proceed. Palma attributed the government’s inability to secure funds to the failure of lawmakers to pass a 2024 proposal aimed at raising 12 trillion pesos ($2.9 billion) through increased taxes to address the debt issue.
As of February 2025, the government owes energy distributors 3.1 trillion pesos ($753.3 million) in unpaid fees that were suspended during the Covid-19 pandemic. When factoring in subsidies, the total debt rises to 7.4 trillion pesos, according to the industry group Asocodis. At the same time, the Colombian government is readying for an electricity generation auction, prompted by warnings of possible power shortages.
Energy sector organizations have voiced concerns regarding the likelihood of blackouts in the medium term, citing delays in environmental licensing and approvals for renewable projects such as wind and solar energy as major impediments. During his speech at the Colombia Genera conference in Cartagena, Palma reaffirmed the government’s goal to secure a significant amount of energy, ideally from clean and renewable sources. He expressed hope for having guaranteed energy to prevent the nation from experiencing the crises faced by its neighbors.
Included in the government’s agenda is the integration of 6 gigawatts (GW) of clean energy into Colombia’s electricity grid by the conclusion of President Gustavo Petro’s administration in August 2026, with further information expected to be disclosed soon.
Colombia’s proposal by Energy Minister Edwin Palma to shift electricity debt to wealthier households and companies aims to avert utility closures. With the total debt owed to energy distributors reaching 7.4 trillion pesos, the government’s plans for a renewable energy auction are crucial in addressing potential power shortages. The administration targets an ambitious incorporation of 6GW of clean energy by the end of President Petro’s term, emphasizing the urgency to secure sustainable energy for the nation.
Original Source: www.power-technology.com
