Colombia’s Energy Minister Edwin Palma has proposed that wealthier households and businesses take on the government’s debt to power distributors to prevent utility closures. The current outstanding debt amounts to 3.1 trillion pesos, primarily due to pandemic-related waivers. The government plans to incorporate 6GW of clean energy into the grid by August 2026.
Colombia’s Energy Minister Edwin Palma has introduced a proposal suggesting that higher-income households and businesses assume the government’s debt owed to power distributors. This initiative aims to mitigate the risk of potential utility closures, as reported by Bloomberg. However, the proposal necessitates congressional approval for its implementation.
Palma attributed the failure to pass a crucial tax proposal in 2024, which sought to raise 12 trillion pesos (approximately $2.9 billion) to cover outstanding payments, to the inaction of lawmakers. As of February 2025, the government’s total debt to energy distributors reached 3.1 trillion pesos (around $753.3 million), primarily due to waived fees during the Covid-19 pandemic. Including subsidies, the overall debt escalates to 7.4 trillion pesos, according to the industry group Asocodis.
Amidst warnings of potential power shortages, the Colombian government is preparing for an electricity generation auction, as highlighted by Reuters. Energy sector associations have expressed concerns regarding the medium-term risk of blackouts, primarily due to delays in environmental licensing and authorizations for wind and solar energy projects.
During the Colombia Genera conference in Cartagena, Minister Palma articulated the government’s goal of securing a significant amount of energy, with a preference for clean and renewable sources. “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,” he stated. The government aims to integrate 6GW of clean energy into Colombia’s electricity grid by the end of President Gustavo Petro’s term in August 2026. Further details regarding this initiative will be disclosed shortly.
In summary, Colombia’s Energy Minister Edwin Palma has proposed that higher-income sectors assume the government’s energy debt to prevent utility closures. This strategy, pending congressional approval, comes amidst increasing concerns about potential power shortages and the risk of blackouts due to delays in renewable energy projects. The government aims to integrate substantial clean energy into the grid by the end of President Petro’s term, underscoring a commitment to a sustainable energy future.
Original Source: www.power-technology.com
