Colombia Power Market Size and Share
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.
Colombia Power Market Trends and Insights
Drivers Impact Analysis
Driver | ( ~ ) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline | |
---|---|---|---|---|
Rising electricity demand from industrial & digital growth | +1.20% | Caribbean Coast & Central regions | Medium term (2-4 years) | |
Abundant hydro resources & favourable renewable potential | +0.80% | Andean & Caribbean regions | Long term (≥ 4 years) | |
Government renewable-energy auctions & incentives (Law 1715) | +1.50% | Atlántico, Cesar & Córdoba | Short term (≤ 2 years) | |
Grid-modernisation investments led by ISA Intercolombia | +0.70% | National transmission network | Medium term (2-4 years) | |
Emerging green-hydrogen hubs spurring flexible generation | +0.3% | Caribbean Coast, particularly La Guajira | Long term (≥ 4 years) | |
Andean cross-border interconnections enabling power exports | +0.2% | Border regions with Ecuador and Panama | Medium term (2-4 years) |
Source: Mordor Intelligence
Rising electricity demand from industrial & digital growth
Industrial electrification, data-centre proliferation, and Colombia’s target of 63% internet penetration by 2026 are lifting power needs well above historical growth. Nationwide demand grew 5.48% year on year in February 2024 as automated mining, e-commerce logistics, and AI adoption widened the load profile. The Caribbean region tops consumption, mirroring its manufacturing parks and fiber-optic corridors. Rising loads stress 115 kV circuits, spurring utilities to accelerate capacitor-bank deployments and flexible demand programmes. These shifts fortify revenue visibility for forthcoming solar and gas-peaking projects, sustaining the Colombia power market expansion.
Government renewable-energy auctions & incentives (Law 1715)
The auction mechanism awarded 4.4 GW of new solar capacity in 2024 at a record-low USD 18.2/MWh, underscoring the cost edge of utility-scale photovoltaics. Law 1715 enhances returns through VAT exemptions, accelerated depreciation, and 20-year contracts that socialise demand risk. Recent reforms allow self-generators up to 5 MW to sell surplus power without wheeling charges, widening market entry. The Ministry of Mines and Energy expects an additional 2,550 MW of renewable capacity during 2025, creating 6,000 jobs and COP 3.7 trillion in economic value review. These levers underpin a resilient project pipeline feeding the Colombia power market.
Abundant hydro resources & favourable renewable potential
Hydropower already supplies three-quarters of domestic electricity, yet complementary resources abound. La Guajira’s wind corridor offers 20 GW technical potential, while the Caribbean shelf is earmarked for 7 GW offshore wind by 2040.[3]World Bank Energy Team, “Unlocking Colombia’s Offshore Wind Potential,” worldbank.org Government studies cite 139 exajoules of geothermal potential, equivalent to 1.17 GW of firm capacity, positioning the sector for its first licence round in 2025. Such diversity allows natural balancing of seasonal water swings, lowering the storage bill and sharpening supply security, which fortifies the Colombia power market trajectory.
Grid-modernisation investments led by ISA Intercolombia
ISA Intercolombia steered 71% of its COP 3.9 trillion capex toward new transmission assets in Q1 2025, targeting renewable evacuation lines and state-of-the-art monitoring platforms. Projects include the Santa Marta 220 kV M-SSSC installation that dynamically steers power flows from coastal solar parks. A 500 kV Andean loop upgrade and the suspended Colombia–Panama interconnector promise an additional 1.2 GW transfer capacity once permitted. These projects relieve congestion, reduce losses, and anchor reliable expansion for the Colombia power market.
Restraints Impact Analysis
Restraint | ( ~ ) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Hydrology dependency & El Niño supply variability | -0.90% | Andean hydro regions | Short term (≤ 2 years) |
Regulatory uncertainty over tariff adjustments | -0.60% | National, acute in Caribbean Coast | Medium term (2-4 years) |
Transmission bottlenecks delaying project execution | -0.40% | Corridors to La Guajira | Medium term (2-4 years) |
Social opposition & indigenous consultations delaying RE projects | -0.30% | La Guajira & indigenous territories | Long term (≥ 4 years) |
Source: Mordor Intelligence
Hydrology dependency & El Niño supply variability
The 2024 El Niño cut reservoir inflows sharply, forcing generators to treble gas burn and lifting spot prices 23% to COP 763.48/kWh. With 58.1% of capacity still hydro-based, drought spells expose consumers to volatility and generators to liquidity crunches. Research shows solar and wind complement the dry-season resource gap, yet rollout speed lags immediate system needs. Revised reservoir management rules and hedging via firm energy options partially offset the strain, but the risk remains material for the Colombia power market.
Social opposition & indigenous consultations delaying RE projects
In La Guajira, Wayuu protests halted work at Enel’s Windpeshi farm 60% of 2023, inflating costs to USD 400 million and limiting completion to 35%. Celsia exited two wind licences after multi-year permitting stalls, redirecting turbines abroad. Although the government proposes faster consultation rules, mistrust around land access, job allocation, and cultural safeguards persists. Developers now embed community equity stakes and early benefit-sharing funds to secure social licence, yet timing risks continue to shadow the Colombia power market outlook.
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.
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.

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
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Empresas Públicas de Medellín (EPM)
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ISAGEN SA
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Enel Colombia
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Celsia SA ESP
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AES Colombia
- *Disclaimer: Major Players sorted in no particular order

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.
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 |
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) |
Transmission (230 kV and 500 kV) |
Sub-Transmission (115 kV) |
Distribution (Below 57.5 kV) |
Residential |
Commercial and Industrial |
Utilities |
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