Colombia Power Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Colombian power market is segmented by generation (conventional thermal, hydro, and non-hydro renewable) and transmission and distribution (T&D). The report offers market size and demand forecasts for the Columbian power market based on installed capacity (GW) for all the above mentioned segments.

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Colombia Power Market Size

Colombia Power Market Summary
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Study Period 2019-2028
Base Year For Estimation 2022
Forecast Data Period 2023 - 2028
Historical Data Period 2018 - 2021
CAGR > 3.00 %
Market Concentration Medium

Major Players

Colombia Power Market Major Players

*Disclaimer: Major Players sorted in no particular order
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Colombia Power Market Analysis

The Colombian power market is expected to register a CAGR of greater than 3% during the forecast period.

  • Over the long term, factors such as the increasing demand for clean energy, such as solar and wind power, and favorable government policies are expected to drive the growth of the Columbian power market.
  • On the other hand, long delays in constructing power transmission projects due to logistical, environmental, and social challenges are likely to hamper the market growth during the forecast period.
  • Nevertheless, the country has a strong future in coupling large-scale solar and wind power as hybrid power plants. This, in turn, is expected to provide ample opportunity for the Colombian power market.

Colombia Power Market Trends

Hydropower to Dominate the Market

  • Hydropower has been active in Colombia for a long time. It is expected to continue to be the most dominant form of power generation, primarily due to its enormous potential. Further, hydropower helps keep electricity tariffs low.
  • Hydropower is a mature technology in the country, and the scope for future growth may be limited on a large scale. However, small hydropower projects are likely to increase in the coming years, which will have less impact on the environment and be more economical to build.
  • In Colombia, hydroelectric plants produce between 60% and 70% of the country's annual electricity production. The country's hydroelectric power generation capacity reached 12 GW after the completion of four small projects in 2022.
  • Also, the largest of the projects is the 15 MW La Chorrera plant, which began commercial operations in the Antioquia department. Other projects to start generating electricity were the 9.9 MW Zeus plant in Antioquia, the 8.5 MW Gran Colombia Gold self-generation facility in Antioquia, and the 1.5 MW Cauyá plant in Caldas.
  • Moreover, in December 2022, Empresas Públicas de Medellín, a public utility company in Colombia, announced the commercial operations of a 2.4 GW hydropower plant at Ituango. The plant is located on the Cauca River in northwestern Colombia and has started to supply 600 MW of electricity to the grid.
  • All the aforementioned factors are expected to augment the hydropower segment during the forecast period.
Colombia Power Market - Installed Hydropower Capacity

Growing Renewable Energy Installations to Drive the Market

  • Colombia is strong in solar and wind energy generation. The solar energy segment is likely to hold the largest market share during the forecast period, owing to the declining costs of solar modules and the versatility of these systems for various applications, like electricity generation, water heating, etc.
  • As of 2022, the country installed 457 MW of energy through solar power, with a growth rate of 148.37% from the previous year. Also, solar installation remains out of reach for many households in the country. However, in rural areas where access to subsidies is less, the total CAPEX required to switch to solar to lower their electricity bills is one of the significant factors aiding this segment's growth.
  • The country's National Energy Plan for 2050 expects to double the share of coal-fired generation to 12.5% of installed capacity by 2028. The Transmission Expansion Plan expects coal to deliver over 18.5% of power by 2031. These additions would trump any efforts to decarbonize Colombia's energy system and reduce greenhouse gas (GHG) emissions.
  • Moreover, in August 2022, the Colombian Ministry of Mining and Energy launched the country's first offshore wind lease round and expects to grant permits for the use of marine areas in the second half of 2023. This, in turn, contributes to the growth of the country's wind energy market during the forecast period.
  • Also, in April 2022, Greenwood Energy, the Latin American renewable energy subsidiary of the Libra Group, and the Confederación Indígena Tayrona (CIT), the organization of the Arhuaco people from Colombia, announced the launch of the Terra Initiative, a utility-scale solar project in Colombia's Sierra Nevada de Santa Marta mountains. The first-of-its-kind project was created in partnership with the Arhuaco people and is designed to support the preservation and reforestation of land that the International Union for Conservation of Nature describes as the most irreplaceable nature reserve in the world.
  • Therefore, due to the factors mentioned above, the government of Colombia is expected to increase investment in the country's renewable energy sector, which will increase the country's power market.
Colombia Power Market - Installed Renewable Energy Capacity

Colombia Power Industry Overview

The Colombian power market is semi consolidated. Some of the major players (in no particular order) include ISAGEN Energía Productiva, DNV GL AS, Enel Green Power SpA, TermoCandelaria Power Limited, and The AES Corporation.

Colombia Power Market Leaders

  1. ISAGEN Energía Productiva

  2. DNV GL AS

  3. Enel Green Power SpA

  4. TermoCandelaria Power Limited

  5. The AES Corporation

*Disclaimer: Major Players sorted in no particular order

Colombia Power Market.png

Colombia Power Market News

  • December 2022: Ecopetrol, the Colombian petroleum company, announced its plans to construct a 250 kW geothermal power plant at its Apiay oil complex in Meta, Colombia. This pilot plant is expected to be completed by June 2023 using geothermal heat derived from existing oil wells from which oil and water can be coproduced at 100 degrees Celsius.
  • May 2022: Enel Colombia, the subsidiary of Enel SpA, completed 70% of the La Loma solar farm project in Colombia. The company is building a 187-MW (direct current) plant in the department of Cesar. The solar plant has 400 thousand modules mounted on the 437-hectare site. The solar farm will generate some 420 GWh of power per year. Enel Green Power installed 121,300 panels and injected the first power into the grid in February 2022.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

  2. 2. EXECUTIVE SUMMARY

  3. 3. RESEARCH METHODOLOGY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Installed Capacity and Demand Forecast in GW, till 2028

    3. 4.3 Recent Trends and Developments

    4. 4.4 Government Policies and Regulations

    5. 4.5 Market Dynamics

      1. 4.5.1 Drivers

      2. 4.5.2 Restraints

    6. 4.6 Supply Chain Analysis

    7. 4.7 PESTLE Analysis

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Generation

      1. 5.1.1 Conventional Thermal

      2. 5.1.2 Hydro

      3. 5.1.3 Non-hydro Renewable

    2. 5.2 By Transmission & Distribution (T&D)

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 ISAGEN Energia Productiva

      2. 6.3.2 DNV GL AS

      3. 6.3.3 Enel Green Power SpA

      4. 6.3.4 TermoCandelaria Power Limited

      5. 6.3.5 The AES Corporation

      6. 6.3.6 Ventus Ingeniería SA

      7. 6.3.7 Celsia SA ESP

    4. *List Not Exhaustive

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

Colombia Power Industry Segmentation

Power, meaning electric power, is the rate at which electrical energy is transferred by an electric circuit. Power transmission is the movement of energy from its place of generation to a location where it is applied to perform useful work. Power is defined formally as units of energy per unit of time.

The Colombian power market is segmented by generation and transmission, and distribution. The market is segmented by generation into conventional thermal, hydro, and non-hydro renewable. The market sizing and forecasts are given for each segment based on installed capacity (GW).

By Generation
Conventional Thermal
Hydro
Non-hydro Renewable

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Frequently Asked Questions

The Colombia Power Market is studied from 2019 - 2028.

The Colombia Power Market is growing at a CAGR of >3% over the next 5 years.

ISAGEN Energía Productiva, DNV GL AS, Enel Green Power SpA, TermoCandelaria Power Limited, The AES Corporation are the major companies operating in Colombia Power Market.

Colombia Power Industry Report

Statistics for the 2023 Colombia Power market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Colombia Power analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

Colombia Power Market Report Snapshots

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