Colombia Solar Energy Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 1.48 gigawatt |
| Market Volume (2029) | 12.85 gigawatt |
| CAGR (2024 - 2029) | 54.07 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Colombia Solar Energy Market Analysis
The Colombia Solar Energy Market size in terms of installed base is expected to grow from 1.48 gigawatt in 2024 to 12.85 gigawatt by 2029, at a CAGR of 54.07% during the forecast period (2024-2029).
- Over the medium term, supportive government policies, urbanization activities, and abundant solar energy potential are expected to drive the market during the forecast period.
- However, competition from other conventional energy resources is expected to hinder the growth of the market studied.
- Nevertheless, the increasing demand for energy in the country presents significant opportunities for the Colombian solar energy market.
Colombia Solar Energy Market Trends
Solar Photovoltaic is Expected to Dominate the Market
- The cost of solar PV modules has decreased rapidly over the years, making them increasingly affordable and cost-competitive compared to other energy sources. This cost reduction is primarily due to advancements in manufacturing processes, economies of scale, and increased efficiency of solar panels.
- Solar PV systems are highly scalable and can be deployed in various sizes, from small residential installations to large-scale solar farms. This flexibility makes solar PV suitable for various applications and enables it to meet diverse energy demands.
- Moreover, solar energy is abundant, particularly in countries like Colombia, which receives ample sunlight yearly. This availability of solar radiation makes solar PV a reliable and predictable energy source, offering a stable and consistent power supply.
- The solar PV installed capacity in the country has increased significantly in recent years. According to the International Renewable Energy Agency 2024, the installed solar PV capacity grew by more than twofold. The installed solar PV capacity in Colombia reached 676 MW in 2023.
- Moreover, in January 2023, Ecopetrol and Total Eren collaborated to develop a solar photovoltaic farm in Colombia. The Rubiales solar facility is expected to have a capacity of 100 MWp and will be built in the municipality of Puerto Gaitan in Colombia’s Meta province. Total Eren will hold a 51% stake in the Rubiales project, with Ecopetrol owning the remaining 49%.
- Furthermore, in February 2024, Enel Colombia announced that it inaugurated the 187 MW La Loma solar farm in the Colombian department of Cesar. The USD 126 million (EUR 116.9 million) project installed over 400,000 solar panels, enabling the plant to generate around 420 GWh of electricity per year.
- Therefore, due to the aforementioned factors, the solar PV segment is expected to dominate the Colombian solar energy market during the forecast period.
Government Initiatives are Expected to Drive the Market
- Governments play a crucial role in creating a favorable regulatory environment for the solar energy market. They establish clear guidelines and streamline project approvals, permits, and grid interconnection processes. By reducing bureaucratic barriers and simplifying procedures, governments facilitate the development of solar projects, attract investments, and drive market growth.
- Governments worldwide, including Colombia, have set ambitious renewable energy targets to combat climate change and reduce greenhouse gas emissions. These targets often include specific goals for solar energy deployment. To achieve these targets, governments introduce supportive policies and incentives to encourage the adoption of solar energy, such as feed-in tariffs, tax credits, and grants.
- Colombia and eight other Latin American countries are actively pursuing a regional target of achieving 70% renewable energy usage by 2030. As part of this collective effort, Colombia has set a goal to contribute 4 GW of renewable energy to its overall energy mix, thus supporting the regional objective for 2030. The majority share of renewable energy is expected to come through solar energy resources due to the high solar energy potential of the country, as it is located near the equator.
- Recently, hydropower has been the dominant source in Colombia's energy generation mix, accounting for over 70% of the total share. Additionally, the country has a significant proportion of gas power generation, representing approximately 11% of the overall energy mix. While Colombia has well-developed hydropower technology, the government recognizes the reliability challenges associated with this source due to factors like droughts and extreme weather conditions resulting from climate change. Therefore, the government has increased its focus on renewable energy sources like solar and wind energy.
- For instance, in March 2023, Colombia's National Mining and Energy Planning Unit (UPME) disclosed its latest auction aimed at acquiring renewable energy. Through this procurement process, a total renewable energy capacity of 7.493 MW was allocated. This capacity comprises 5.774 MW, distributed among 147 solar projects.
- Additionally, governments recognize the importance of diversifying their energy mix to enhance energy security and reduce dependence on fossil fuel imports. As domestically available energy, solar energy reduces a country's reliance on imported energy sources. Governments promote solar energy to achieve greater energy security and independence, which drives the market by encouraging investments in solar projects.
- In February 2024, the Government of Colombia announced that it had awarded 4.4 GW of solar PV capacity, which accounted for 99% of all renewable generation capacity offered in its latest auction. Although the Reliability Charge auction was open to all renewables, almost all the capacity was awarded to new solar capacities, with 30 projects awarded and expected to be operational between December 2027 and November 2028.
- Therefore, according to the abovementioned points, government policies are expected to supplement the market growth during the forecast period.
Colombia Solar Energy Industry Overview
The Colombian solar energy market is consolidated. Some of the key players in the market (not in particular order) include Ventus Ingeniería SRL, Enel Green Power SpA, Trina Solar Ltd, Solen Technology, and Ecopetrol SA.
Colombia Solar Energy Market Leaders
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Solen Technology
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Trina Solar Ltd
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Ecopetrol SA
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Enel Green Power SpA
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Ventus Ingeniería SA
*Disclaimer: Major Players sorted in no particular order
Colombia Solar Energy Market News
- February 2024: Atlas Renewable Energy, an international provider of renewable energy solutions for large consumers, acquired its first solar project in Colombia, the Shangri-La project, located in the Department of Tolima. The project will generate approximately 403.7 GWh per year and will supply renewable energy through a power purchase agreement.
- May 2023: Verano Energy, a renewable energy developer focused on Latin America, completed the acquisition of three solar projects in Colombia, with a combined capacity of approximately 296 MWp. The company, headquartered in Chile, anticipates that the construction of these projects will necessitate investments exceeding USD 300 million.
Colombia Solar Energy Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Installed Capacity and Forecasts in GW, till 2029
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 Supportive Government Policies in Developing Solar Energy
4.5.1.2 Abundant Solar Resources Across the Country
4.5.2 Restraints
4.5.2.1 Competition from Conventional Energy Sources
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 Technology
5.1.1 Solar Photovoltaic (PV)
5.1.2 Concentrated Solar Power (CSP)
5.2 End User
5.2.1 Residential
5.2.2 Commercial and Industrial
5.2.3 Utility
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Ventus Ingeniería SRL
6.3.2 Enel SpA
6.3.3 Trina Solar Ltd
6.3.4 Solen Technology
6.3.5 Ecopetrol SA
6.3.6 Colombian Solar Systems SAS
6.3.7 TotalEnergies SE
- *List Not Exhaustive
6.4 Market Ranking Analysis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Growing Energy Demand in the Country
Colombia Solar Energy Industry Segmentation
Solar energy refers to the radiant light and heat emitted by the Sun, which can be harnessed and converted into usable forms of energy. It is a renewable and sustainable source of power that does not produce greenhouse gas emissions or contribute to air pollution. Solar energy is primarily captured and utilized through solar panels or photovoltaic (PV) cells. These devices consist of semiconductor materials, typically silicon, which can generate electricity when exposed to sunlight. When photons (particles of light) strike the surface of the solar panel, they excite the electrons within the semiconductor material, creating an electric current.
The Colombian solar energy market is segmented by technology and end user. By technology, the market is segmented into solar photovoltaic (PV) and concentrated solar power. By end user, the market is segmented into residential, commercial and industrial, and utility. For each segment, the market size and forecast are provided based on installed capacity in gigawatts (GW).
| Technology | |
| Solar Photovoltaic (PV) | |
| Concentrated Solar Power (CSP) |
| End User | |
| Residential | |
| Commercial and Industrial | |
| Utility |
Colombia Solar Energy Market Research FAQs
How big is the Colombia Solar Energy Market?
The Colombia Solar Energy Market size is expected to reach 1.48 gigawatt in 2024 and grow at a CAGR of 54.07% to reach 12.85 gigawatt by 2029.
What is the current Colombia Solar Energy Market size?
In 2024, the Colombia Solar Energy Market size is expected to reach 1.48 gigawatt.
Who are the key players in Colombia Solar Energy Market?
Solen Technology, Trina Solar Ltd, Ecopetrol SA, Enel Green Power SpA and Ventus Ingeniería SA are the major companies operating in the Colombia Solar Energy Market.
What years does this Colombia Solar Energy Market cover, and what was the market size in 2023?
In 2023, the Colombia Solar Energy Market size was estimated at 0.68 gigawatt. The report covers the Colombia Solar Energy Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Colombia Solar Energy Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Colombia Solar Energy Industry Report
Statistics for the 2024 Colombia Solar Energy market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Colombia Solar Energy analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
