Colombia’s green energy prospects and dynamics

Colombia

Federico Echavarría, general manager of AES Colombia, talks to The Energy Year about the importance of investor confidence in kick-starting renewables and about ensuring a diversified energy mix in Colombia. AES Colombia is a local subsidiary of AES, a global electrical power generation and distribution company.

How important is investor confidence in kick-starting the renewables revolution and ensuring a more diversified energy mix in Colombia?
In general terms, the electricity matrix in Colombia is a very clean one. Colombia has significant hydro energy resources. Water comprises around two thirds of the installed power capacity of the country and a significant portion of the yearly generation. That has permitted Colombia to have a very clean energy matrix, but that does not mean we do not need an energy transition.
At the same time, we need to understand that consumers want competitive tariffs, as well as reliable and sustainable sources of energy. The country needs to transition to a more balanced energy mix, and that is why the role of non-conventional renewable energies is very important. In this panorama, we see increasing solar and wind energy.
The question now revolves around the need to ensure that all these projects come on line and are actively a part of the energy matrix. We need to make sure that the projects come to fruition. To realise them, we need to ensure that there is investor confidence.
There have been major delays. In the last three years, around 4 GW of new power capacity should have come on line that did not. If we do not build the infrastructure, including the transmission lines and the planned power generation projects, we might experience power shortages in the medium term because energy demand continues to grow. This is why we need to attract further investment.
Traditionally, Colombia has been recognised for a very strong electricity framework that gives confidence to investors – it is stable. Likewise, the country has historically respected and promoted private investments. This goes to say that it is essential to have a framework that gives confidence to investors, and we need to keep on inviting private and foreign investment to enable a swift energy transition.

Tell us more about your renewable energy portfolio in Colombia.
AES focuses on 14 countries, mainly in the Americas. AES Colombia makes an important contribution to its global portfolio. Moreover, the company is the 5th largest generator in Colombia, providing power to around 3.2 million Colombians daily. Most importantly, we are the first company in the country to produce 100% renewable energy using multiple technologies.
For example, we own and operate the fourth-largest hydroelectric power plant in the country, which has a capacity of 1 GW. We also have a small-scale hydroelectric plant of 20 MW called Tunjita. Furthermore, we have developed three solar farms with a combined capacity of 108 MW. The San Fernando solar park is among them, which is the largest self-generation solar project in the country.
Lastly, our largest bet is in La Guajira region, which will become the region’s renewable hub. In 2019, we acquired Jemeiwaa Kai (JK), with 549 MW of reserved transmission capacity through the Colectora substation. Today it is the largest wind energy cluster development in the country, which includes more than 1,100 MW.

What are the main challenges hindering the renewables potential of La Guajira?
One cannot talk about the energy transition without talking about La Guajira. This region has one of the greatest potentials in the world when it comes to wind resources because of the quality of its wind.
However, the main challenge in this area is infrastructure. There are not enough transmission lines to connect the vast energy resources in La Guajira with the rest of the country. We need to make sure that this infrastructure is built so we can take that energy to the rest of the country.
One key transmission project is Colectora being developed by Grupo de Energía de Bogota. It was supposed to be online at the end of 2022. Unfortunately, due to a number of challenges, it will not be finished before the second half of 2026. We have the environmental licence that connects our projects with the national grid through the Colectora project. Once Grupo Energía Bogotá starts building the project, we can very start building our ventures. Thus, it is essential to have the Colectora project finished, as JK could be operational by 2026.

Tell us about the importance of the Chivor hydroelectric plant and its unique modernisation scheme.
The Chivor hydroelectric power plant is situated in the La Esmeralda dam and with its 1,000 MW produces around 5-6% of the country’s power. The plant plays a significant role in the energy reliability of the country, particularly in the east where Bogotá is located.
Chivor has been in operation for close to 47 years. The company has undergone an important modernisation scheme through the Bocatomas project, which is the first project in Colombia that extends the life cycle of a hydroelectric plant.
This USD 120-million investment included a new water intake as well as additional water-conducting tunnels. In April 2022, the Bocatomas project was concluded, and today, Chivor is a state-of-the-art hydro plant with the latest technology.
Now we’re starting another project that is going to be an investment of around USD 50-60 million to reinforce the infrastructure of the Chivor 2 plant, which comprises 500 MW of Chivor’s total capacity. This project will take four years. Fortunately, the construction work will not affect the power generation of the plant.
We’re also building a new high-tech control room. This centre will integrate not only the latest technologies, but it will also be connected to other infrastructure and centres of excellence within AES. These different modernisation schemes will ensure the plant runs at full efficiency rates for the next 50 years. Our goal is to maintain efficiency and energy reliability.

What solar projects has AES Colombia developed with Ecopetrol, and what further projections does it see in the solar scene?
We have developed three solar plants in collaboration with Ecopetrol. The first one was the 21-MW Castilla solar plant in Meta, which was followed by the construction of the 61-MW San Fernando solar farm for Cenit, an Ecopetrol subsidiary. In 2023, Las Brisas solar farm was inaugurated, which has a total capacity of 26 MW. These plants will supply power to Ecopetrol for their own energy consumption for 15 years.
What we learned from all three projects is the importance of optimising the assembly line. This ensures that when you construct a solar project, you develop it in such a way that every step is very well structured and well developed, making the whole process more efficient.
These solar projects are triggering energy savings of around 35-40%. We would like to do more self-generating projects with Ecopetrol and also with other oil and gas companies and consumer and industrial users.
On another note, we would also like to develop grid-based solar ventures. At the moment, we are developing projects which we expect to start construction on in 2025 and have online by the end of 2026. The first one has a capacity of around 130 MW. We want to create a strategy of developing solar projects every year to complement our hydro portfolio.

What potential does La Guajira have for hydrogen development?
AES is at the forefront of hydrogen. In Texas, we are developing the most advanced large green hydrogen project in the US. We have also been looking into Chile and Brazil. We believe that La Guajira will be very competitive for developing hydrogen projects. We’re trying to position La Guajira within AES in order to develop a huge energy hub.
Hydrogen and green ammonia would not be aimed at internal consumption but more at exports. This is a long-term strategy we have in the country, but we see the tremendous potential the region could have for hydrogen. If we work with the government, the communities and the different stakeholders, we believe that La Guajira could be one of the best places in Latin America for developing hydrogen.

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