Colombia’s Energy Minister proposed that affluent households and companies absorb government energy distributor debts to prevent utility closures. The initiative requires congressional approval and aims to address a total debt of 7.4 trillion pesos. The government plans an electricity generation auction amid concerns of future power shortages, emphasizing the incorporation of 6GW of clean energy by August 2026.
Colombia’s Energy Minister Edwin Palma has proposed a debt shift initiative, suggesting that affluent households and enterprises shoulder the government’s debts to power distributors. This initiative aims to avert closure risks facing certain utilities due to outstanding payments. To proceed, this proposition necessitates approval from Congress.
In 2024, Palma attributed the failure to pass a significant tax proposal, aimed at raising 12 trillion pesos ($2.9 billion) to pay off debts, to lawmakers’ inaction. As of February 2025, the government’s unpaid debts to energy distributors total 3.1 trillion pesos ($753.3 million), arising from fees uncollected during the Covid-19 pandemic. When factoring in subsidies, the overall debt escalates to 7.4 trillion pesos, according to Asocodis, an industry group.
Amidst concerns of potential power shortages, the Colombian government is preparing for an electricity generation auction. Energy sector associations have voiced alarms about likely blackouts in the near future, attributing this risk to delays in securing environmental licenses and authorizations for wind and solar energy ventures.
At the Colombia Genera conference held in Cartagena, Palma expressed the government’s ambition to secure extensive energy supplies, prioritizing clean and renewable sources. He stated, “We hope to receive the largest amount of energy, hopefully clean, renewable… which will allow us to have guaranteed energy so that this country does not suffer what neighbouring countries have suffered.”
The government’s strategy includes adding 6GW of clean energy to Colombia’s electricity grid by the conclusion of President Gustavo Petro’s term in August 2026. Further announcements regarding this initiative are anticipated shortly.
The Colombian government’s approach to alleviating the electricity debt involves transferring the burden to higher-income sectors to safeguard utility operations. The proposed shift aims to address significant debts accrued during the pandemic and potential power shortages. With an emphasis on clean energy, the government aspires to incorporate substantial renewable energy resources into the grid by August 2026.
Original Source: www.power-technology.com
