Distributed renewable energy in Colombia
Unlocking private investment for non-interconnected zones
Colombia has prioritised the use of renewable energy to expand and improve electricity
services for its population in zones non-interconnected to the national grid. Recent
policies and regulations have supported this ambition with successive measures to
strengthen investment conditions for distributed renewable energy, like standalone
solar photovoltaic (PV) solutions and hybrid solar PV mini-grids. Still, the distributed
renewable energy market in non-interconnected zones is relatively immature, reflected
by the high costs for connecting new users. New business and financing models will
be critical to bringing down the cost of renewable energy technologies, accessing
private equity and debt in larger volumes, and ultimately progressing towards replacing
existing inefficient and polluting diesel generation systems. Building on international
experiences, this paper discusses approaches to strengthening investment conditions,
looking at support mechanisms and de-risking instruments used elsewhere, which can
help bridge the financing gap in Colombia.
Available from May 17, 2023Also available in: Spanish
In series:OECD Environment Working Papersview more titles