Colombia’s Energy Minister proposes that wealthier households and corporations take on government debts owed to power distributors to avert utility closures. The proposal needs Congress’s approval and comes in light of significant outstanding debts resulting from pandemic-related fee waivers. The government aims to incorporate renewable energy into the grid while addressing potential power shortages.
Colombia’s Energy Minister Edwin Palma has proposed that wealthier households and corporations assume responsibility for the government’s debt toward power distributors. This move aims to prevent the potential closure of utility companies, as highlighted by a report from Bloomberg. However, this proposal will require approval from Congress to proceed.
Minister Palma criticized lawmakers for not enacting a 2024 proposal aimed at generating 12 trillion pesos ($2.9 billion) through increased taxes to help mitigate the issue. As of February 2025, the government owes a total of 3.1 trillion pesos ($753.3 million) to energy distributors, primarily due to fee waivers implemented during the Covid-19 pandemic. Including subsidies, the total outstanding debt reaches 7.4 trillion pesos, according to the industry group Asocodis.
In light of these debts, the Colombian government is preparing for an electricity generation auction amid concerns over potential power shortages. Reports from Reuters indicate that energy sector associations have raised alarms regarding the possibility of blackouts, primarily attributed to delays in environmental licensing and approvals for wind and solar projects.
During the Colombia Genera conference held in Cartagena, Minister Palma expressed the government’s commitment to procuring a significant volume of clean and renewable energy. 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 the integration of 6 gigawatts (GW) of clean energy into Colombia’s electricity grid by the conclusion of President Gustavo Petro’s term in August 2026, with further details expected to be announced soon.
In conclusion, Colombia’s approach to managing its electricity debt involves a proposal for higher-income households and corporations to assume financial responsibility. This initiative is crucial to mitigate the risk of utility closures while aiming to enhance the energy security of the nation through increased clean energy sources. As the government prepares for an electricity auction and plans significant investments in renewables, congressional approval will be essential for the proposal’s implementation.
Original Source: www.power-technology.com
