Energy profile: Colombia

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This page is part of Global Energy Monitor's Latin America Energy Portal.
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Fuel mix (fossil fuels vs renewables)

Hydro power accounts for more than two thirds of Colombia's electrical generation and installed capacity.[1] Over the next decade, Colombia plans to expand its emphasis on renewables, raising installed capacity of other renewable sources from 2% in 2018 to 21% by 2030, with the largest growth in onshore wind energy.[2] The environmental permitting agency of Colombia, ANLA, approved the first permit for a large wind farm in 2018.[3] Simultaneously, Colombia anticipates growth in the coal sector to 2.4 GW of installed capacity by 2030.[2]

Annual carbon dioxide (CO₂) emissions from different fuel types, measured in tonnes in 2019. Source: Our World in Data

Greenhouse gas emissions targets

In December 2020, President Duque updated Colombia's NDC (Nationally Determined Contribution) to reflect a 51% reduction in greenhouse gas emissions (compared to their original reduction pledge).[4] In order to meet their greenhouse gas emissions targets by 2030, Colombia will need to enact policies to speed up the transition away from coal and fracking as well as preventing deforestation which accounts for 16.68% of total emissions in the country.[5] Long term, Colombia aims to be net-zero by 2050.[5]

Government energy agencies & other key players

National energy ministry

The MME (Ministerio de Minas y Energía), formed in 1974, oversees Colombia's mining industry, mineral industry, and electricity sector. UPME (Unidad de Planeación Minero Energética) is the branch of the MME responsible for planning development of the country's energy and mineral resources.

Permitting agencies

ANLA (Autoridad Nacional de Licencias Ambientales) is the national permitting agency for projects based on their environmental effects. An environmental permit must be obtained from both ANLA and the regional environmental agency.[6]

Regulatory agencies

CREG (Comisión de Regulación de Energía y Gas), created in 1994, is responsible for the regulation of electricity and gas utilities in accordance with laws 142 and 143.[7]

ANH (Agencia Nacional de Hidrocarburos) is the national agency in charge of administration and regulation of Colombia's domestic hydrocarbon resources.[8][9],

SSPD (La Superintendencia de Servicios Públicos Domiciliarios) oversees public utility companies in Colombia.

Electric utilities

ISA (Interconexión Eléctrica SA) is Colombia's main electrical transmission company.[7] The electricity sector is monitored and administered by CND (Centro Nacional de Despacho), ASIC (Administrador del Sistema de Intercambios Comerciales), and LAC (Liquidador y Administrador de Cuentas).[10]

National oil company

Majority state-owned Ecopetrol is Colombia's leading oil company and one of the four largest oil and gas companies in Latin America, alongside Mexico's Pemex, Brazil's Petrobras, and Venezuela's PDVSA; the Colombian government holds 88.5% of Ecopetrol's shares.[11][12][13]

Leading energy companies

Drummond Ltd. is the leading coal company in Colombia and creates approximately 10,000 jobs within Colombia.[9]

Leading electricity companies in Colombia include EMGESA, Empresas Públicas de Medellín, and ISAGEN.[7]

Energy sector employment data

Colombia has Latin America's second largest workforce in the renewable energy sector, just behind Brazil.[14] Of the approximately 272,000 jobs in the renewable sector in 2019, 212,000 were in liquid biofuels, 36,600 in hydropower, 18,600 in solid biomass, 4,000 in wind power, and approximately 1,000 in solar photovoltaic.[14]

Electricity usage

The Colombian electricity sector is comprised of both the National Interconnected System (SIN) and non-interconnected zones.[7] SIN includes generation plants, the interconnection network, regional transmission, interregional transmission, and 27,916 kilometers of distribution networks.[15] Electricity services in the non-interconnected zones (ZNI) are provided by independent small-scale systems.

Installed capacity

Hydropower is the main power source in Colombia, accounting for 77.97% of installed capacity in 2019, followed by thermal power stations (14.62%), cogeneration (1.22%), and wind (0.1%).[7]

Production

The three-year construction delay at the Hidroituango hydroelectric plant created concerns about near-term energy shortages in Colombia, leading CREG to establish incentives for projects which could bridge the gap until the opening of Hidroituango, which is expected to cover more than 15% of Colombia's energy needs.[7]

Demand

IPSE (Instituto de Planificación y Promoción de Soluciones Energéticas) is an affiliate of the MME which focuses on meeting the electricity demands of rural, underserved areas in the non-interconnected zones of Colombia.

Consumption

During 2019, per capita electricity usage in Colombia was 1,300 Kwh.[16]

Coal in Colombia

Domestic Production

Colombia has the second largest reserves of coal in South America (after Brazil), but is the top producer of coal, mostly concentrated in the Guajira region.[17] Colombia produces more than 80% of the coal in Latin America.[18] The federal government owns all hydrocarbon reserves while private companies are responsible for coal production.[19] Between 1995 and 2020, Drummond Ltd. exported 500 million tons of coal from Colombia.[9]

Consumption

As of 2018, approximately 10% of Colombia's energy supply came from coal.[19]

Proposed new sources & projects

Colombia is a notable coal exporter, shipping much of its coal abroad.[20] The country holds a 5.24% share of the global coal market as of 2021; Turkey, the Netherlands, and Chile are top importers of Colombian coal.[21] MME has focused on increasing exports to Asian countries in coming years, with China and India being the key anticipated markets for Colombian coal as Europe invests more heavily in renewable energies.[22]

Oil & Natural Gas in Colombia

Domestic Production

Colombia is the 19th largest oil producer in the world.[23] Following the impacts of COVID-19 and OPEC disagreements in 2020, Colombia has been trying to recover the nearly 50% drop in oil and gas sector investments.[24] MME hopes to return Colombian production to 2019 levels.[24] Barrancabermeja refinery and the Reficar Cartagena refinery make up almost all domestic fuel production.[17]

Source: EnerData[25]

Consumption

As of 2018, just under 40% of Colombia's energy supply came from oil, with an additional 25% from natural gas.[19]

Imports & source countries

Demand for natural gas pushed Colombia to begin importing in 2016.[26] Declining natural gas reserves and production has triggered an uptick in LNG imports from the United States.[27]

Proposed new sources & projects

Modernization projects for refineries and pipelines were the priority for Colombia between 2010-2020.[17]

Transport

Cenit, a subsidiary of Ecopetrol, controls 80% of crude oil pipelines infrastructure in Colombia (6,300 miles), refined product pipelines are almost exclusively controlled by Cenit.[17]

Transportadora de Gas Internacional (TGI), a subsidiary of Grupo Energia de Bogotá, operates the majority of natural gas pipelines.[17]

Renewable Energy in Colombia

Policy support at the federal level and meeting the rising consumer demand for renewables in Colombia will contribute to a positive growth trend between 2020-2025.[28] Due to Colombia's heavy reliance on hydroelectricity (69% of the renewable energy) it is highly vulnerable to hydrology scenarios such as the El Niño phenomenon, necessitating the use of thermal energy as a backup.[29] Accordingly, greenhouse gas emissions are particularly high during El Niño events. Wind energy is likely to see a significant trend in growth by 2025.[28] La Guajira is slated to attract wind investment due to class seven winds while Orinoco and San Andrés are attractors for solar development.[30] Biomass cogeneration plants could also have a strong foothold in Colombia due to forestry and agricultural waste.[30]

Iron & Steel in Colombia

The Iron and steel sector is overseen by the Comité Colombiano de Productores de Acero, a member of the ANDI (La Asociación Nacional de Empresarios de Colombia). Ferronickel exportation from Colombia began in 1985, following the mining of the ore deposit Cerro Matoso.[31] In 2018 the gross production value of the iron and steel industry was 7.76 trillion Colombian pesos.[32] During 2020 exports of Colombian iron and steel fell by 17.1%.[33] Colombian steel producers focus on long steels (80% of which is rebar) and expect to see growth due to infrastructure projects.[34] The five main steel producers in Colombia are: Acerías Paz del Río (Brazilian), Gerdau Diaco (Brazilian), Sidenal, Sidoc, and Ternium Colombia.

Environmental & social impacts of energy in Colombia

The ecosystems and biodiversity of Colombia are directly threatened by extractive energy activities.[35] The reinjection of production water from the oil and gas industry has led to seismic activity in Colombia.[36] The wetlands in Colombia are at particularly high risk from energy related pollution.[37]

Water pollution by oil & gas operations negatively impacts indigenous communities.[36] Communities threatened by the environmental effects of energy are impoverished, lack adequate health services, and struggle to have their voices heard at the national policy level.[35] Labor, social, and environmental activists in Colombia have been repressed or disappeared by large companies.[36] More than 2,000 indigenous environmental activists were killed or injured since 2016 for speaking out about mineral extraction and the dangers of fracking.[38] In 2020, more than half of all the activist deaths in the world took place in Colombia.[39] Colombian activists continue to advocate for the environment and to push bills prohibiting the exploration and exploitation of new reservoirs.[40]

Lack of accountability in the Colombian energy sector allows for problematic outcomes.[41] The gaseous nature of Colombia's coal deposits have contributed to numerous workplace accidents and deaths.[18] Poor ventilation, worker training, and inadequate regulation makes it likely that methane related accidents will continue.[18]

References

  1. "Panorama energético de América Latina y el Caribe 2020". OLADE. November 2020.
  2. 2.0 2.1 Djunisic, Sladjana (September 6, 2019). "Colombia to Beef Up Coal Along with Renewables by 2030". Renewables Now. Retrieved April 15, 2021.
  3. "Colombia grants first ever permit for large wind farm | Insights | Philippi Prietocarrioza Ferrero DU & Uría". Philippi Prietocarrioza Ferrero DU & Uría. Retrieved 2021-04-14.
  4. "Colombia pledges to reduce its GHG emissions by 51% by 2030". Retrieved 2021-04-15.
  5. 5.0 5.1 "Colombia Shows Leadership in the Race Against Climate Change". World Resources Institute. Retrieved 2021-04-15.
  6. "Manual of Environmental Licensing in Colombia" (PDF). ProColombia. Retrieved April 14, 2021.
  7. 7.0 7.1 7.2 7.3 7.4 7.5 "The Energy Regulation and Market Review, 8th Edition" (PDF). Law Business Research LTD. July 2019. Retrieved April 14, 2021.
  8. "Historia". ANH. Retrieved 2021-05-24.
  9. 9.0 9.1 9.2 "500 million tons of coal exported, a new record for Drummond - Drummond LTD". Drummond LTD. 2020-12-18. Retrieved 2021-04-15.
  10. "Qué hacemos". www.xm.com.co (in español). Retrieved 2021-04-15.
  11. "Colombia Enters Talks With Ecopetrol for Sale of Power Giant ISA". Bloomberg.com. February 6, 2021.
  12. "Composición accionaria". Ecopetrol. Retrieved May 24, 2021.
  13. "The Past, Present, and Prospects for Colombia's Chemicals Industry". www.aiche.org. Retrieved 2021-04-15.
  14. 14.0 14.1 "Renewable energy employment by industry in Colombia | Statista". Statista. Retrieved 2021-04-14.
  15. "Líneas de trasmisión por agentes operadores". paratec.xm.com.co.
  16. Cite error: Invalid <ref> tag; no text was provided for refs named :1
  17. 17.0 17.1 17.2 17.3 17.4 "Background Reference: Colombia". EIA. January 7, 2019. Retrieved April 15, 2021.
  18. 18.0 18.1 18.2 "Addressing safety and environmental risks of methane from Colombia's coal mines | UNECE". unece.org. Retrieved 2021-04-15.
  19. 19.0 19.1 19.2 "Colombia - Countries & Regions - IEA". IEA. Retrieved 2021-04-14.
  20. iContainers (2020-01-31). "What Are Colombia's Main Imports and Exports? | iContainers". iContainers. Retrieved 2021-04-15.
  21. "Colombia's Economy: Why Do Their Imports Outweigh Exports? [Latest Trade Stats] - Commodity.com". Commodity.com. Retrieved 2021-04-15.
  22. "As Glencore Walks, Colombia Envisages Decades of Coal Mining". Bloomberg. March 11, 2021. Retrieved April 15, 2021.
  23. "The Past, Present, and Prospects for Colombia's Chemicals Industry". www.aiche.org. Retrieved 2021-04-15.
  24. 24.0 24.1 Cite error: Invalid <ref> tag; no text was provided for refs named :5
  25. "Colombia Energy Information | Enerdata". www.enerdata.net. Retrieved 2021-04-15.
  26. "Can Colombia Overcome Its Natural Gas Crisis? | OilPrice.com". OilPrice.com. Retrieved 2021-04-19.
  27. "Colombia expected to sharply increase LNG imports if domestic production does not grow | S&P Global Platts". www.spglobal.com. Retrieved 2021-04-19.
  28. 28.0 28.1 "Colombia Renewable Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)". www.mordorintelligence.com. Retrieved 2021-04-19.
  29. "Solar and Wind Energy Will Transform the Colombia Energy Matrix - Energía para el Futuro". Energía para el Futuro. 2019-10-31. Retrieved 2021-04-19.
  30. 30.0 30.1 "Renewable energy in Latin America: Colombia". Retrieved 2021-04-19.
  31. "Colombia - Mining and quarrying". Encyclopedia Britannica. Retrieved 2021-04-15.
  32. "Primary steel & iron industry production Colombia | Statista". Statista. Retrieved 2021-04-15.
  33. "Colombian iron and steel export volume down 17.1 percent in 2020". www.steelorbis.com. Retrieved 2021-04-15.
  34. "Colombia's exposure to international markets drives improved productivity and cost cuts". Oxford Business Group. 2017-06-22. Retrieved 2021-04-15.
  35. 35.0 35.1 "Environmental Performance Review: Colombia" (PDF). OECD. 2014. Retrieved April 15, 2021.
  36. 36.0 36.1 36.2 "Oil Extraction in Colombia: Report Reveals the Human and Environmental Costs of Black Gold". International Federation for Human Rights (in français). Retrieved 2021-04-15.
  37. "In a Colombian wetland, oil woes deepen with the arrival of fracking". Mongabay Environmental News. 2020-04-15. Retrieved 2021-04-15.
  38. "Facing an Economic Crisis, Colombia Turns to Fracking". Sierra Club. 2020-12-15. Retrieved 2021-04-15.
  39. "Over half of global environmental defender murders in 2020 in Colombia: report". Mongabay Environmental News. 2021-03-02. Retrieved 2021-04-15.
  40. "The Wave Against Fracking in Colombia | Insights | Holland & Knight". www.hklaw.com. Retrieved 2021-04-19.
  41. "Colombia: 'The impacts of mining are going to cost us' says Robert Moran - Gaia Foundation". Gaia Foundation. 2013-02-26. Retrieved 2021-04-19.