Colombia Power Market Size (2024 - 2029)

Colombia Power Market Size Summary

The Colombian power market is poised for growth, driven by an increasing demand for clean energy sources like solar and wind power, alongside supportive government policies. Despite challenges such as delays in power transmission projects due to logistical and environmental issues, the market is expected to benefit from the development of hybrid power plants that combine solar and wind energy. Hydropower remains the dominant form of power generation in Colombia, supported by its vast potential and ability to maintain low electricity tariffs. While large-scale hydropower growth may be limited, the country is likely to see an increase in small hydropower projects, which are more environmentally friendly and cost-effective.

Colombia is also making strides in solar and wind energy, with solar power anticipated to capture a significant market share due to decreasing costs and versatile applications. The country's National Energy Plan aims to increase coal-fired generation, which could impact decarbonization efforts. However, initiatives like the offshore wind lease round and the Terra Initiative, a solar project in partnership with the Arhuaco people, highlight the government's commitment to expanding renewable energy investments. The Colombian power market is semi-consolidated, with key players such as ISAGEN Energía Productiva and Enel Green Power SpA actively contributing to the sector's development.