Colombia Proposes Electricity Debt Shift to Mitigate Utility Risks
Colombia’s Energy Minister Edwin Palma proposed a plan for higher-income households to assume government debts owed to power distributors, aiming to prevent utility closures. This plan requires congressional approval and follows significant debt accumulation due to unpaid fees during the pandemic. Energy associations warned of potential blackouts, leading the government to seek clean energy solutions for the future.
Colombia’s Energy Minister Edwin Palma has recently suggested that wealthier households and corporations should assume the government’s debt owed to power distributors. This initiative aims to mitigate the risk of utility closures in what has been described by Bloomberg as an escalating crisis. For this proposal to be enacted, it will necessitate approval from Congress.
Minister Palma expressed frustration with legislators for their inaction on a previous proposal aimed at generating 12 trillion pesos (approximately $2.9 billion) through increased taxation to address this significant debt. As of February 2025, the Colombian government has accumulated a debt of 3.1 trillion pesos (around $753.3 million) to energy distributors, resulting from fees that were not collected during the Covid-19 pandemic.
The total debt, factoring in subsidies, leaps to 7.4 trillion pesos according to the industry group Asocodis. In parallel, the government is preparing for an electricity generation auction amid alerts regarding potential power shortages, as indicated by Reuters.
Energy sector associations have voiced their apprehensions about impending blackouts, attributing these risks to delays in environmental permits for wind and solar projects. At the Colombia Genera conference held in Cartagena, Minister Palma reiterated the administration’s commitment to securing a substantial supply of energy, emphasizing a preference for clean and renewable sources.
“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,” he stated.
The government’s strategic plan intends to integrate 6 gigawatts of clean energy into Colombia’s electricity grid by August 2026, coinciding with the conclusion of President Gustavo Petro’s term. More comprehensive details regarding this initiative are expected to be released soon.
In summary, Colombia’s Energy Minister Edwin Palma has proposed that affluent households and companies take on government debt to help power distributors avoid closure. The government currently faces substantial debt from unpaid fees during the pandemic, with potential blackouts looming due to delays in green energy projects. The administration aims to secure clean energy contracts and integrate 6 gigawatts into the grid by August 2026, reinforcing its commitment to energy sustainability.
Original Source: www.power-technology.com
