After more than 12 months, we are approaching the moment of conclusions and decisions. The group of experts appointed by the national government is responsible for submitting a number of proposals. This Energy Transformation Mission has clear and interesting objectives. As defined by its formulation, it must present the 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 respects. The first is distributed generation with renewable energies and second, the digital transformation of the sector, in different fields. The first is distributed generation with renewable energies and second, the digital transformation of the sector, in different fields.
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.
Once this step is complete, the Government will be able to start implementing the objectives of the Mission gradually. “The proposal contains short-, medium- and long-term actions.” “The proposal contains short-, medium- and long-term actions.”
A few weeks ago, the working groups produced one last report. Which defines the scope of the Energy Transformation and Modernization Mission of the Electricity Industry. This defines the scope of the Mission of energy transformation and modernization of the electricity industry.
The 5 energy transformation bulbs
Focus No. 1. Competition, participation and structure of the electricity market.
With the inclusion of renewable energy, one of the challenges is to maintain the stability of the system. The creation of competing markets for short- and long-term pricing and continuing to offer reliability. That’s why one of the experts’ tasks was to analyze the reliability charge scheme. As well as assess how to make price formation more efficient, within the principles of reliability and sustainability. In order to benefit the end user of the electric power service.
Focus No. 2. Natural gas in energy transformation. Supply, supply and demand
Experts worked on strategies to achieve more efficient coordination between gas and electricity generation. Streamline the supply and demand of natural gas. Increasing the real participation 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.
This focus responds directly to the technological changes experienced by the energy sector. It seeks to give greater relevance in the market to demand (consumers). Which has traditionally been passive. Users will be the center of development of the sector.
Discuss, 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 would be their participation, and what would be the tariff structure for the end user to receive price signals. Which allows for more efficient and better informed consumption decisions.
Focus No. 4. Gap closure, quality improvement and efficient subsidy design and formulation.
Focus No. 4. (Executive Summary: Grant Design and Formulation). Gap closure, quality improvement and efficient subsidy design and formulation.
The Expert Mission evaluated how to achieve a more efficient allocation of subsidies. That will allow focusing resources where they are really needed. Currently, about 90% of 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 better allocation of subsidies. This, in turn, can help close equity gaps and bring energy to more than 500,000 families who do not have this service today. 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. Institutional and Regulatory.
This focus discusses how to land the different proposals in an institutional and regulatory framework. And so, it contributes to the general purposes of greater competitiveness, reliability and environmental and social responsibility. And so, it contributes to the general purposes of greater competitiveness, reliability and environmental and social responsibility.
Experts made a number of recommendations aimed at strengthening and modernizing industry institutions and entities. And to achieve greater coordination that allows them to respond to the new challenges of the electricity sector. And to achieve greater coordination that allows them to respond to the new challenges of the electricity sector.