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Opportunities in Colombia's Evolving Power Market

Opportunities in Colombia's Evolving Power Market

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At 15.5GW, the Colombian power grid is small, given that it serves a country of 47.7 million, the third-most populous in Latin America. This is largely due to its low per capita power use - even by regional standards - as well as the economy's comparatively low level of industrialization. The electricity system has maintained comfortable reserve margins despite adding only 2.2GW of new capacity over the last decade. As a result, Colombia should not face an energy crunch in the short term. Planned and existing generation plants are expected to cover its power needs over the next few years. However, the grid's reliance on hydroelectricity leaves it vulnerable to weather conditions, and authorities are exploring options to diversify the supply matrix. Over the medium to long term, the challenges that Colombia will face include choosing and incorporating new power sources, ensuring that its backup thermoelectric power plants have access to fuel, and expanding and reinforcing the transmission and distribution infrastructure.

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