Colombia Power Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Colombia Power Market Report is Segmented by Generation (Conventional Thermal, Hydroelectric, and Non-Hydro Renewable), Transmission and Distribution Voltage Levels (Transmission, Sub-Transmission, and Distribution), and End-User (Residential, Commercial and Industrial, and Utilities). The Market Size and Forecasts are Provided in Terms of Installed Capacity (GW).

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Colombia Power Market Size and Share

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Colombia Power Market Analysis by Mordor Intelligence

The Colombia Power Market size in terms of production capacity is expected to grow from 22.77 gigawatt in 2025 to 28 gigawatt by 2030, at a CAGR of 4.22% during the forecast period (2025-2030).

The growth path stems from policy-backed diversification away from hydropower dominance, rising industrial electrification, and stronger climate-resilience planning. Following the 2024 El Niño, natural-gas use for thermal generation swelled by 233%, exposing hydro-dependency risks and prompting accelerated solar and wind adoption.[1]Portafolio Staff, “Demanda de energía creció 5,48% en febrero de 2024,” portafolio.co Robust auction pipelines, a supportive fiscal regime, and grid-modernisation projects by ISA Intercolombia further reinforce capacity additions, while emerging green-hydrogen hubs promise flexible demand that deepens electrification. On the demand side, industrial automation, data-centre roll-outs, and residential appliance uptake collectively lift annual electricity consumption, obliging regulators to streamline tariffs and expand sub-transmission assets.[2]International Trade Administration, “Colombia – Energy Overview,” trade.gov

Key Report Takeaways

  • By generation type, hydroelectric sources led with 58.1% of the Colombia power market share in 2024, whereas non-hydro renewables are projected to expand at 8% CAGR through 2030.
  • By transmission voltage level, 230 and 500 kV lines accounted for a 54% share of the Colombia power market size in 2024, while 115 kV sub-transmission networks are advancing at an 8% CAGR to 2030.
  • By end-user category, utilities absorbed 55% of demand in 2024, but residential consumption is rising fastest at a 6% CAGR through 2030.

Segment Analysis

By Generation: Renewable Transition Accelerates

Hydropower retained 58.1% of Colombia's power market share in 2024, providing the bulk of 22.77 GW installed capacity. Thermal assets stay indispensable for reliability, but rising gas prices and carbon constraints narrow their dispatch window. Wind resources in La Guajira promise scale yet face social bottlenecks, tilting near-term growth to solar. Solar capacity reached 1,773 MW by April 2024 after USD 1 billion flowed into 33 new plants.

The Colombia power market size for utility solar is expected to top 5 GW by 2027, while geothermal and biomass carve out niche roles backed by EDF and Ecopetrol pilots. Government plans envisage a 35% jump in renewable additions during 2025, underpinned by the USD 40 billion transition roadmap. Together, these trends cement an irreversible pivot toward a diversified, lower-carbon generation stack within the Colombia power market.

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Note: Segment shares of all individual segments available upon report purchase

By Transmission & Distribution Voltage Level: Infrastructure Modernization Drives Growth

High-voltage 230–500 kV corridors carried 54% of the Colombia power market size in grid assets during 2024, reflecting their centrality for bulk transfers. Yet 115 kV sub-transmission networks are scaling fastest at an 8% CAGR, linking coastal renewables to inland load centres. Distribution circuits below 57.5 kV face bidirectional flow challenges from rooftop solar and fast-growing EV chargers. A USD 300 million European Investment Bank loan to Enel Colombia is earmarked for upgrading feeders serving 3.7 million customers.

By 2030, the Colombia power market size for advanced metering infrastructure will surpass 7 million endpoints, spurring data-driven outage management and loss reduction. ISA Intercolombia’s digital twins and phasor measurement units optimise real-time dispatch, lowering congestion costs that previously averaged COP 12 billion monthly. Despite progress, industry bodies flag 500 km of lines still awaiting permits, underscoring transmission as a gating factor for renewable roll-outs in the Colombia power market.

By End User: Residential Consumption Leads Growth

Utilities captured 55% of delivered electricity in 2024. Residential demand, however, is the Colombia power market’s fastest mover, expanding at a 6% CAGR on urbanisation, rising incomes, and greater cooling uptake. Households registered an 8.22% consumption jump in early 2024, while non-regulated industrial volumes slipped slightly, evidencing diverging patterns. Demand-response pilots seek 500 GWh in household curtailments, scaling to 2,500 GWh by 2030.

Government-backed “Colombia Solar” aims to supply rooftop PV to 500,000 low-income homes, potentially shaving 180 MW of evening peaks. Smart-appliance penetration and real-time pricing trials enhance flexibility, while IoT sensors in Non-Interconnected Zones improve microgrid reliability, covering 53% of the territory. These developments set the stage for a more participatory, digital end-user landscape within the Colombia power market.

Colombia Power Market: Market Share by End-User
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Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

The Caribbean Coast dominates new-build activity, leveraging superior insolation and steady trade winds that attracted over 54% of 2024 renewable investment flows. Atlántico hosts flagship solar arrays, while La Guajira’s wind potential underpins Colombia’s first green-hydrogen export pilots. Transmission upgrades such as the Cuestecitas–Copey line unlock evacuation, yet persistent Wayuu consultations keep timelines fluid, affecting regional contributions to the Colombia power market size. The Andean interior, centred on Antioquia and Cundinamarca, remains the hydropower backbone but contends with climate-driven inflow swings and delayed commissioning of the 2.4 GW Ituango plant.

Central highlands near Bogotá enjoy rising rooftop PV penetration and are earmarked for 73% of 2025 solar additions due to grid proximity and land availability. Pacific lowlands remain largely undeveloped for large-scale renewables, yet host geothermal prospects and the proposed Buenaventura LNG terminal that may supply future peaking units. Cross-border interties with Ecuador and Panama support seasonal trade; however, four circuits were de-energised in 2024 amid domestic shortages, illustrating geopolitical sensitivities. Offshore wind concessions along the Caribbean shelf could deliver up to 50 GW post-2035, reinforcing Colombia’s ambitions as a regional power exporter and adding depth to the Colombia power market.

Competitive Landscape

Three incumbents—ISAGEN, EPM, and Ecopetrol—control around 60% of installed capacity, giving the Colombia power market a moderate concentration profile. ISAGEN operates 3,140 MW of mostly renewable capacity, supplying 15.6% of national demand in 2024.[4]ISAGEN Investor Relations, “2024 Integrated Report,” isagen.com.co Ecopetrol accelerated diversification by purchasing Statkraft’s 1.3 GW project pipeline and taking 49% of AES’s 1,087 MW Jemeiwaa Ka'I cluster, staking leadership in utility solar and onshore wind. EPM focuses on hydro but is piloting 120 MW of solar paired with batteries to hedge reservoir risk.

Competitive edges centre on integrated value chains, digital O&M platforms, and favourable financing. Enel Colombia secured a USD 300 million EIB facility that lowers its weighted cost of capital, enabling aggressive tariff bids sace.it. Younger entrants such as Celsia pivot to solar after exiting wind projects hampered by social headwinds, while tech firms deploy IoT demand-response systems that aggregate residential loads. Due to limited local expertise, white-space plays in geothermal and offshore wind offer first-mover potential. Overall, rivalry will intensify as auctions migrate toward locational pricing that rewards grid-friendly siting, recalibrating the competitive order within the Colombia power market.

Colombia Power Industry Leaders

  1. Empresas Públicas de Medellín (EPM)

  2. ISAGEN SA

  3. Enel Colombia

  4. Celsia SA ESP

  5. AES Colombia

  6. *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments

  • May 2025: Ecopetrol completed acquisition of ten renewable developers from Norway’s Statkraft, adding up to 1.3 GW of pipeline across five departments.
  • April 2025: Ecopetrol agreed to buy 49% of AES Colombia’s 1,087 MW Jemeiwaa Ka'I wind cluster in La Guajira.
  • October 2024: European Investment Bank extended USD 300 million to Enel Colombia for Guayepo solar expansion.
  • February 2024: Reliability auction awarded 4.4 GW of solar at USD 18.2/MWh with 99% photovoltaic share.

Table of Contents for Colombia Power Industry Report

1. Introduction

  • 1.1 Study Assumptions & Market Definition
  • 1.2 Scope of the Study

2. Research Methodology

3. Executive Summary

4. Market Landscape

  • 4.1 Market Overview
  • 4.2 Installed Capacity Analysis
  • 4.3 Market Drivers
    • 4.3.1 Rising electricity demand from industrial & digital growth
    • 4.3.2 Abundant hydro resources & favourable renewable potential
    • 4.3.3 Government renewable-energy auctions & incentives (Law 1715)
    • 4.3.4 Grid-modernisation investments led by ISA Intercolombia
    • 4.3.5 Emerging green-hydrogen hubs spurring flexible generation
    • 4.3.6 Andean cross-border interconnections enabling power exports
  • 4.4 Market Restraints
    • 4.4.1 Hydrology dependency & El Nino supply variability
    • 4.4.2 Regulatory uncertainty over tariff adjustments
    • 4.4.3 Transmission bottlenecks delaying project execution
    • 4.4.4 Social opposition & indigenous consultations delaying RE projects
  • 4.5 Supply-Chain Analysis
  • 4.6 Regulatory Landscape
  • 4.7 Technological Outlook
  • 4.8 Porter's Five Forces
    • 4.8.1 Threat of New Entrants
    • 4.8.2 Bargaining Power of Suppliers
    • 4.8.3 Bargaining Power of Buyers
    • 4.8.4 Threat of Substitutes
    • 4.8.5 Competitive Rivalry
  • 4.9 PESTLE Analysis

5. Market Size & Growth Forecasts

  • 5.1 By Generation
    • 5.1.1 Conventional Thermal (Gas-fired, Coal-fired and Oil-fired)
    • 5.1.2 Hydroelectric (Large Hydro and Small and Medium Hydro)
    • 5.1.3 Non-hydro Renewable (Solar PV, Wind, Biomass and Waste and Geothermal)
  • 5.2 By Transmission and Distribution Voltage Level
    • 5.2.1 Transmission (230 kV and 500 kV)
    • 5.2.2 Sub-Transmission (115 kV)
    • 5.2.3 Distribution (Below 57.5 kV)
  • 5.3 By End User
    • 5.3.1 Residential
    • 5.3.2 Commercial and Industrial
    • 5.3.3 Utilities

6. Competitive Landscape

  • 6.1 Market Concentration
  • 6.2 Strategic Moves (M&A, Partnerships, PPAs)
  • 6.3 Market Share Analysis (Market Rank/Share for key companies)
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Products & Services, and Recent Developments)
    • 6.4.1 ISAGEN SA
    • 6.4.2 Empresas Publicas de Medellin (EPM)
    • 6.4.3 Celsia SA ESP
    • 6.4.4 Enel Colombia
    • 6.4.5 AES Colombia
    • 6.4.6 TermoCandelaria Power Ltd
    • 6.4.7 Grupo Energia Bogota (GEB)
    • 6.4.8 ISA Intercolombia
    • 6.4.9 Prime Energia Colombia
    • 6.4.10 GENSA (Termopaipa)
    • 6.4.11 Vatia Energia
    • 6.4.12 Ventus Ingenieria SA
    • 6.4.13 Grenergy Renovables Colombia
    • 6.4.14 EDF Renewables Colombia
    • 6.4.15 Canadian Solar Colombia
    • 6.4.16 Trina Solar LatAm
    • 6.4.17 Atlantica Sustainable Infrastructure
    • 6.4.18 Ecopetrol - Generation Subsidiary
    • 6.4.19 Grupo Celsia - EPSA
    • 6.4.20 Siemens Energy Colombia

7. Market Opportunities & Future Outlook

  • 7.1 White-space & Unmet-Need Assessment
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Colombia Power Market Report Scope

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 (Gas-fired, Coal-fired and Oil-fired)
Hydroelectric (Large Hydro and Small and Medium Hydro)
Non-hydro Renewable (Solar PV, Wind, Biomass and Waste and Geothermal)
By Transmission and Distribution Voltage Level Transmission (230 kV and 500 kV)
Sub-Transmission (115 kV)
Distribution (Below 57.5 kV)
By End User Residential
Commercial and Industrial
Utilities
By Generation
Conventional Thermal (Gas-fired, Coal-fired and Oil-fired)
Hydroelectric (Large Hydro and Small and Medium Hydro)
Non-hydro Renewable (Solar PV, Wind, Biomass and Waste and Geothermal)
By Transmission and Distribution Voltage Level
Transmission (230 kV and 500 kV)
Sub-Transmission (115 kV)
Distribution (Below 57.5 kV)
By End User
Residential
Commercial and Industrial
Utilities
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Key Questions Answered in the Report

What is the current size of the Colombia power market?

The installed capacity is 22.77 GW in 2025, and it is projected to reach nearly 28 GW by 2030.

Which generation segment is growing fastest?

Non-hydro renewables, especially solar photovoltaic, are expanding at about 8% CAGR through 2030 after winning 99% of the 2024 capacity auction.

How vulnerable is Colombia’s grid to droughts?

Hydropower supplies 58.1% of capacity, so El Niño events can lift thermal generation costs and spot prices, pushing regulators to hasten solar and wind integration.

What role does transmission investment play in market growth?

ISA Intercolombia’s multibillion-peso programme adds high-voltage corridors and digital controls that are essential for evacuating new renewable projects to demand centers.

Which region leads renewable deployment?

The Caribbean Coast, particularly Atlántico and La Guajira, attracts over half of new renewable investment thanks to high irradiation and strong wind resources.

How concentrated is market ownership?

Three incumbents hold about 60% of capacity, giving the market a moderate concentration score of 6 with increasing space for auction-driven entrants.

Page last updated on: March 11, 2025

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