Colombia’s Energy Minister Edwin Palma has proposed shifting electricity debt to higher-income households to avoid utility closures, requiring congressional approval. The government’s debt to power distributors due to unpaid fees during the pandemic stands at 3.1 trillion pesos, amounting to 7.4 trillion pesos with subsidies. The government is also preparing for an electricity auction and plans to integrate 6GW of clean energy by August 2026.
Colombian Energy Minister Edwin Palma has proposed a shift of electricity debt onto higher-income households and businesses. This move aims to alleviate the financial burden from power distributors, which are facing closure risks. However, the proposal requires congressional approval to advance further.
Palma criticized lawmakers for not passing a 2024 proposal to raise 12 trillion pesos ($2.9 billion) via increased taxes to settle the debt. As of February 2025, the government’s debt to energy distributors stood at 3.1 trillion pesos ($753.3 million), originating from waived fees during the Covid-19 pandemic. When subsidies are included, the total debt escalates to 7.4 trillion pesos, as reported by Asocodis.
Currently, the Colombian government is preparing for an electricity generation auction to address possible future shortages. Energy sector associations are concerned about medium-term blackout risks caused by delays in the environmental licensing and approvals necessary for wind and solar projects.
At the Colombia Genera conference, Palma emphasized the government’s commitment to secure a significant amount of clean energy. 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 government aims to integrate 6GW of clean energy into Colombia’s electricity grid by the end of President Gustavo Petro’s tenure in August 2026, with further details expected to be announced soon.
Colombia’s government is facing challenges in managing its electricity debt, prompting a proposal from Energy Minister Edwin Palma to transfer this debt to wealthier households and businesses. Legislative support is crucial for the implementation of this plan. Additionally, the government is striving to enhance clean energy generation, with plans to add 6GW to the grid by 2026, amidst warnings of potential power shortages and blackouts.
Original Source: www.power-technology.com
