Energy Mission in Colombia to present key documentation in May
After more than 12 months, we approach the moment of conclusions and decisions. The national government-appointed expert group is responsible for presenting a series of coherent, consistent and creative proposals to enhance the energy sector to the next level. The basis of the proposed changes comes from disruptive changes in two aspects, distributed generation with renewable energies and the digital transformation of the sector, in different areas of the energy sector in Colombia.
Of the five focuses that make up Colombia’s Energy Transformation Mission, final reports including feedback received should be delivered at the end of May.
It should be noted that all this documentation summarizes the work of almost 12 months led by 20 national and international experts – four members per focus – who have reviewed the academic literature of the Colombian electricity sector and evaluated experiences from different parts of the world.
Once this step is complete, the Government will be able to begin to implement the Objectives of the Mission gradually. “The proposal contains short-, medium- and long-term actions.”
A few weeks ago, the working groups produced a final report defining the scope of the Energy Transformation and Modernization Mission of the electricity industry –DOWNLOAD-.
The 5 spotlights
Focus No. 1. Competition, participation and structure of the electricity market.
(Presentation Focus No. 1)
With the inclusion of renewable energies, one of the challenges is to maintain the stability of the system, the creation of competitive markets for short- and long-term pricing and continue to offer reliability. That’s why one of the experts’ tasks was to analyze the reliability charge scheme and assess how to make price formation more efficient, within the principles of reliability and sustainability, to benefit the end user of the electric power service.
Focus No. 2. Natural gas in energy transformation. Supply, supply and demand
(Presentation Focus No. 2)
Experts worked on strategies to achieve more efficient coordination between gas and electricity generation, and to boost the supply and demand of natural gas, increasing their share of generation plants in energy demand, not just capacity.
Currently, gas has a stake of less than 12% in electricity generation. They also evaluated changes to the gas transport system to ensure efficient price delivery in the short and medium term. and greater real use of the transport capacity of all systems. As well as, give clarity and prevent restrictions on the import of natural gas.
Focus No. 3, (Phase I). Decentralization and Digitization of Industry and Efficient Demand Management.
Focus No. 3. Regulatory roadmap for more efficient development of distributed resources.
(Presentation Focus No. 3)
This focus responds directly to the technological changes experienced by the energy sector. It seeks to give greater market relevance to demand (consumers), which has traditionally been passive. Users will be the center of development of the sector.
It analyzes, for example, how to introduce advanced measurement technologies, what changes are necessary for the end user to have a more predominant role in the market, what their participation would be, and what the tariff structure would be for the end user to receive price signals that allow them to make more efficient and informed consumption decisions.
Focus No. 4. Gap closure, quality improvement and efficient subsidy design and formulation.
Focus No. 4. (Executive Summary: Design and Formulation of Grants) Gap closure, quality improvement and efficient subsidy design and formulation.
(Presentation Focus No. 4 – 1)
(Presentation Focus No. 4 – 2)
The Expert Mission assessed how to achieve a more efficient allocation of subsidies, allowing you to focus on resources where they are actually required. Currently, about 90% users receive energy subsidies and 60% receive gas subsidies, in a context where monetary poverty does not reach 30% and multidimensional poverty is less than 20%.
Experts in this focus discussed different ways to achieve a better allocation of subsidies. This, in turn, can help close equity gaps and thus bring energy to more than 500,000 families who do not have this service today.
Focus No. 5. Institutional and Regulatory.
(Presentation Focus No. 5)
This focus examines how to land the various proposals in an institutional and regulatory framework that contributes to the general purposes of greater competitiveness, reliability and environmental and social responsibility.
The experts made a series of recommendations aimed at strengthening and modernizing the institutions and entities of the sector, and achieving greater coordination to enable them to respond to the new challenges of the electricity sector.
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