Colombia’s Energy Minister Edwin Palma proposed reallocating government debt to power distributors to higher-income households and companies to avoid utility closures. This plan requires congressional approval after lawmakers failed to pass related tax increases. Concerns over potential power shortages loom as the government plans to integrate 6GW of clean energy by August 2026, amidst discussions about the need for timely renewable energy project approvals.
Colombia’s Energy Minister, Edwin Palma, has proposed a significant shift in the country’s electricity debt management. Higher-income households and corporations would assume the government’s debt owed to power distributors, which is critical to prevent potential utility closures. This proposal requires congressional approval to proceed, emphasizing the urgency of the situation.
Palma criticized lawmakers for not advancing a plan in 2024 intended to generate 12 trillion pesos (approximately $2.9 billion) through increased taxes, which would help settle these debts. As of February 2025, the government’s debt to energy distributors reached 3.1 trillion pesos ($753.3 million), resulting from fees not charged during the Covid-19 pandemic. When considering subsidies, the total debt escalates to 7.4 trillion pesos, according to Asocodis, the industry group.
Currently, the Colombian government is preparing for an electricity generation auction amid concerns over potential power shortages. Energy sector associations have highlighted the risk of blackouts in the medium term due to delays in environmental licensing and the authorization of wind and solar energy projects, which are vital for future electricity generation.
During the Colombia Genera conference held in Cartagena, Palma reiterated the government’s commitment to securing a substantial supply of energy, ideally from clean and renewable sources. He stated, “We hope to receive the largest amount of energy, hopefully clean, renewable… which will allow us to have guaranteed energy so that this country does not suffer what neighbouring countries have suffered.”
The Colombian government plans to integrate 6 gigawatts of clean energy into the electricity grid by the conclusion of President Gustavo Petro’s administration in August 2026. Further information regarding this initiative will be announced shortly.
In light of the proposed electricity debt shift in Colombia, the government aims to mitigate the risk of utility closures while addressing a significant outstanding debt to power distributors. The urgency of congressional approval and the integration of clean energy into the national grid reflects a strategic approach to prevent future power shortages and ensure reliable electricity supply for the country. Minister Palma’s emphasis on securing renewable energy highlights the government’s commitment to sustainability within the energy sector.
Original Source: www.power-technology.com
