Colombia Wind Energy Market - Growth, Trends, and Forecasts (2020 - 2025)
The Colombia Wind Energy Market is segmented by Location of Deployment (Onshore and Offshore)
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Scope of the report
Key Market Trends
TABLE OF CONTENTS
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Colombia has a strong potential for non-conventional sources of energy generation, particularly wind energy, and it is expected to register a CAGR of more than 1.2% during the forecast period, 2020-2025. The market is expected to witness significant growth due to rising energy demand coupled with the increasing share of renewables in the power generation mix, efforts to reduce the reliance on fossil fuel-based power generation, regulations on energy efficiency, regulations to ensure efficiency and utilization of energy. Factors like increasing demand for renewable energy, rising investments in wind farms, government policies, and reducing cost of wind energy are driving the wind energy market. However, the increasing adoption of alternate clean power sources is likely to restrain the growth of the wind energy market in the coming years.
Onshore wind is one of Colombia’s largest power source which makes them dominant in the wind energy market in Colombia.
La Guajira has the offshore potential (519.57 TWh/year) to generate 7.7 times the energy needed to cover the national demand, 7.1 times by onshore potential, which is likely to provide the opportunity of growth in the offshore and onshore wind energy market in coming future.
Scope of the report
The Colombia wind energy market report include:
Location of Deployment
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Key Market Trends
Onshore Wind Energy Market to Dominate the Market
The La Guajira Peninsula, due to its geographical location, has the potential for wind generation of 18 GW, enough to cover national demand twice. The department of La Guajira stands out for its tremendous natural resources in this area (estimated at 21 GW of capacity).
Winds in La Guajira have been classified as Class 7 (over 10 m/s), making it the region to have high-speed wind. It has been estimated that Colombia has a wind power potential of 21,000 MW in the Guajira region, which would be enough to generate enough power to twice meet the Colombian power demand. The Jepirachi wind farm is the first operational wind farm in the country, which as commissioned in 2004.
The Unit of Mining and Energetic Planning (UPME) has a goal to increase the contribution of non-conventional renewable energy sources to approximately ten percent of the country's total installed capacity in the coming years. Wind power projects, 18 in total, have secured rights for 2,531 MW, which is expected to come by 2022.
Colombia's total onshore wind power installed capacity reached 18.42 MW in 2019. In the coming year, the wind power installed capacity is expected to grow gradually with new wind power projects coming up in Colombia.
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Increasing Demand for Solar Energy to Restrain the Growth of the Market
Colombia offers dream conditions for producers of solar, especially in departments, such as La Guajira, Atlantico, Antioquia, and Valle de Cauca. The effect of solar energy lasts up to 12 hours a day, registering some of the highest rates worldwide.
The country’s solar installed capacity has reached 89.52 MW with a growth rate of 3.6% in 2019, showing the increasing demand for solar energy to meet their energy needs.
In Colombia’s renewable energy auction held in 2019, contracts were awarded to 3 solar generation projects. The auction’s results are a milestone for the country toward its objective of diversifying its energy matrix through the incorporation of non-conventional renewable energy sources (NCRE).
With upcoming and under construction solar energy projects, solar energy potential is likely to hinder the wind energy market.
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The Colombia wind energy market is moderately concentrated. Some of the key players in this market include Capstone Turbine Corporation, Acciona SA, Ventus Ingeniería Srl, Enel Green Power SpA, and EDP Renovaveis SA.