According to the International Renewable Energy Agency, the installed solar PV capacity in Colombia reached 676 MW in 2023. ⁶

In 2024, Colombia’s solar energy market is projected to reach 1.48 gigawatts. By 2029, it is expected to grow to 12.85 gigawatts. The market is anticipated to experience a compound annual growth rate (CAGR) of 54.07% during the forecast period from 2024 to 2029. ⁶

The finding specific and exact energy prices by source in Kenya is challenging due to limited data availability online. The average cost of electricity generation from different sources are as follows:⁷⁸⁹²

• As one of the primary sources of electricity in Colombia, hydropower costs range from $0.030 per KWh.
• The levelized cost of electricity (LCOE) for solar PV in Colombia ranges around $ 0.03-0.04 per kWh.
• For wind it is approximately USD 0.027 per kWh.
• Traditional sources like coal and natural gas are generally more expensive, with coal averaging USD 0.07-0.09 per kWh and natural gas around USD 0.06-0.08 per kWh​.

The electricity sector in Colombia is dominated by large hydropower generation and thermal generation. Despite the country’s large potential for new renewable energy technologies, this potential is still much underutilized. Following are the electricity generation percentages from different sources: ¹⁰

The daily availability of electricity in Colombia is approximately 24 hours, with a reliability of 99.99% in urban areas and 95% in rural areas. According to World Bank Group, Colombia has also approximate 100% electricity in 2022. ¹¹

The exact number of residential solar panel installation is difficult to determine as no information is available on internet database. According to the International Renewable Energy Agency, the installed solar PV capacity in Colombia reached 676 MW in 2023. ⁶

Regarding solar farms, Colombia Solar Energy Market Size had a total of 32 new PV projects initiated in the past year, amounting to 1,142 MW, with an additional 13 solar facilities totaling 1,101 MW in the testing phase. This growth is part of the country’s broader strategy to support large-scale PV through renewable energy auctions. The country has plans to expand this number significantly in the coming years as part of its renewable energy initiatives. 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. ^{12 6}

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Market Size: The off-grid solar market in Colombia has been growing steadily, driven by the need to provide electricity to remote and rural areas as 470,780 Households are without access to electricity in 2021. No latest data is available. The government has contributed to the growth of solar energy in Colombia by implementing significant tax incentives for renewables and issuing a new decree to reduce barriers for off-grid solar projects. Hybrytec Company has carried out 50 off-grid projects, providing comprehensive solar solutions for homes and communities, including lighting, refrigeration and freezers, water pumping, and heating. The Institute for Planning and Promotion of Energy Solutions in Non-Interconnected Zones (IPSE) has also played a role in increasing the installed capacity of PV in off-grid areas to nearly 2.5 MW. Despite these efforts, solar PV still plays a minor role in both grid and off-grid areas in Colombia.

Growth Projection: The off-grid solar market in Colombia is anticipated to experience substantial growth in the coming years. While I couldn’t find a specific, publicly available projection for Colombia’s off-grid solar market (MW), Market Research Future projects the global off-grid solar market to grow at a CAGR of 10.67% during the forecast period, 2024-2032. While this is a global figure, it gives an indication of the potential growth rate.

Current: South As of 2023, the on-grid solar capacity is estimated to be around 676 MW. The demand is driven by residential, commercial, and industrial sectors seeking to reduce electricity costs and carbon footprints. ⁶

Projected: The Colombian government aims to achieve 4-5 GW solar power capacity to its grid by 2030. ¹²

The average monthly salaries for solar energy professionals include: ^15161718

• Solar Electrician: $500-$700
• Solar Sales Representative: $1000-$1500
• Solar Sales Manager: $2000-$3000
• Solar Design Engineer: $1200-$1500
• Labor Cost: $300-$400

The population of Colombia is approximately 52,360,566. ¹⁹

The average overhead costs for solar panel production in Colombia involve several components:

• Raw Material Costs: Raw materials, such as silicon, aluminum, and copper, are major expenses. These costs fluctuate based on global supply and demand, geopolitical events, and economic conditions.
• Labor Costs: Labor costs in Colombia for the solar industry can be significant. The average labor cost for skilled technicians and factory workers is relatively lower than in developed countries but varies widely depending on the skill level and region.

Minimum Wage ²⁰: Colombia has a national minimum wage that varies depending on the sector

• Public Sector: Around $360 USD per month
• Private Sector (non-agricultural): $300 per month

Average Salary: The average salary in the solar market in Colombia can vary widely based on job role, experience, and region. Generally, salaries for professionals in the solar sector, such as engineers, project managers, and technicians, range around $525 to $1,300 USD.

Utilities and Energy Costs ²¹²²: Colombia’s energy costs for industrial use are relatively high.

• Electricity Prices: Electricity prices for commercial and industrial sectors range between $0.13 to $0.18 per kWh.
• Water Charges: Water consumption is measured using meters, with an average monthly tariff of US$3.5 for 28 cubic meters. While there is no social stratification, special tariffs apply to users who consume more than 28 cubic meters.

Facility Maintenance ³⁷: Costs related to maintaining manufacturing facilities, including rent, equipment maintenance, and repairs, typically range from $2,000 to $8,000 per month. Here’s a rough estimate (based on limited publicly available data): In the second quarter of 2023, Medellín had the highest average monthly rent for industrial and logistics real estate among major cities in Colombia, at approximately $5.64 USD per square meter. In Cali, the average rent for these properties was around $4.00 USD per square meter, a decrease of over 37% compared to the same period in 2022. Barranquilla offered the most affordable industrial and distribution facilities, with a monthly rent of just $3.85 USD per square meter.

Administrative Expenses ¹⁵¹⁷¹⁸: These include salaries for administrative staff, office supplies, and other general expenses, adding a significant portion to the overhead. The average (approximate) monthly salaries for solar energy professionals include:

• Solar Electrician: $700
• Solar Sales Manager: $300
• Solar Design Engineer: $1500

Quality Control: Ensuring the solar panels meet performance and safety standards involves expenses for testing and inspections.

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Colombia has made significant strides in transforming its energy infrastructure, focusing on diversifying its energy sources and committing to clean energy. The country’s energy transition is guided by its National Energy Plan 2020-2050, which aims to integrate wind, solar, and geothermal energy into the electricity mix. In alignment with its goals set at COP26, Colombia targets a 51% reduction in greenhouse gas emissions by 2030. This ambitious plan is supported by policies such as the Energy Transition Law, which promotes energy efficiency and low-carbon technologies, including hydrogen and carbon capture and storage (CCS)

Renewable energy plays a crucial role in Colombia’s energy landscape. In 2021, renewable sources accounted for 25% of the total energy supply and 75% of electricity generation, predominantly from hydropower. The government is actively working to expand non-conventional renewable energy through auctions for large-scale solar and wind projects, particularly in the La Guajira region, which has significant offshore wind potential​

To support this transition, the Climate Investment Funds (CIF) approved $70 million in concessional capital to enhance Colombia’s clean energy integration into the power grid. This funding will be used to improve grid flexibility, expand electric vehicle infrastructure, and develop battery storage technologies. Additionally, the investment is expected to mobilize $280 million in additional capital from various sources​. The national grid, operated by the UPME (Unidad de Planeación Minero Energética), connects various regions and includes both transmission and distribution networks, though rural electrification remains a challenge. Efforts are underway to enhance energy efficiency and integrate more renewable sources, aligning with Colombia’s climate goals

Overall, Colombia’s energy transition is marked by a robust policy framework and substantial investments aimed at creating a diversified and sustainable energy sector, reducing carbon emissions, and ensuring energy security for the future.

To meet the goals proposed in Colombia’s Nationally Determined Contribution (NDC), in the National Development Plan 2018-2022 and the National Development Plan 2022-2026, Colombia has implemented various regulations and norms that encourage the adoption of clean energy sources and discourage the use of fossil resources. ²⁴

Law 1715 of 2014

The law promotes the incorporation of renewable energy sources and efficient use of energy, focusing on renewable energy sources and the incorporation with the national electricity market, as well as the role of renewables in non-interconnected areas (NIZ), in the provision of public lighting and home services. All measures, starting from the reduction of emissions and efficient energy management (Ley 1715 De 2014).

Law 2099 of 2021 – Energy Transition Law

In 2021, Law 2099 of 2021 (Energy Transition Law) is introduced, complementing, and modifying Law 1715 of 2014, indicating the course that the country should follow in the coming years with respect to new opportunities for renewables and energy transformation in the national territory. However, Law 2099 is not the only one that modifies Law 1715, there are the laws of the National Development Plan of 2018 and recently of 2022, in addition to the tax reforms of the last years that have complemented or modified this law.

LAW 2169 of 2021 – Climate Action Law

Law 2169 of 2021 dictates the provisions to achieve the mitigation goals for 2030, where it is expected to reduce greenhouse gas emissions by 51% with respect to the reference scenario for 2030 of the NDC, which represents a commitment to reach a maximum of 169.44 million tCO2eq emissions in 2030, as proposed by Colombia in its NDC 2020 version,

Diversification of the Energy Matrix and Transformation of Non-Interconnected Zones (NIZ): Promote the transformation of the NIZ through a strategy of electricity generation and self-generation from renewable energy sources.

Asociación de Energías Renovables de Colombia (SER Colombia): ²⁵

This association promotes the development and implementation of renewable energy sources in Colombia, including solar, wind, and biomass. SER Colombia works closely with the government, private sector, and other stakeholders to create a conducive environment for renewable energy investments.

Technical Regulations (RETIE and RETILAP)

TÜV Rheinland is recognized as a National Accreditation Body authorized by the Colombian National Accreditation Body (ONAC) to issue certificates in accordance with the RETIE, RETILAP, and RETIQ regulations established by the Colombian Ministry of Mines and Energy (MINMINAS). The Colombian Technical Regulations for Electrical Installations (RETIE), Lighting and Street Lighting Equipment (RETILAP), and Energy Efficiency Labeling of End-Use Electrical and Fuel Gas Equipment (RETIQ) specify several components and products that require approval before being sold in the local market.

The Colombian government has implemented multiple policies and initiatives to boost the domestic manufacturing of solar panels and the solar industry. ²⁴

Law 1715 of 2014:

This law is a foundational piece of legislation that promotes the integration of non-conventional renewable energies into the national energy system. It provides tax incentives, accelerated depreciation, and exemptions from import duties for renewable energy equipment, including solar panels. The law encourages both domestic production and importation of renewable energy technologies.

National Development Plan (PND) 2018-2022:

The PND outlines Colombia’s strategic goals, including the expansion of renewable energy sources. It emphasizes the importance of renewable energy, including solar, in achieving energy security and reducing greenhouse gas emissions. The plan supports initiatives to increase the local production of solar panels and other renewable energy technologies.

Energy Transition Law (Law 2099 of 2021):

This law builds on the foundations laid by Law 1715 and further promotes the energy transition in Colombia. It includes additional incentives for renewable energy projects, including tax benefits and financial support for research and development in solar panel production. The law aims to modernize the energy sector and increase the share of renewable energy in the national grid.

Renewable Energy Auctions ²⁶

The Colombian government has conducted renewable energy auctions to encourage investment in solar energy projects. These auctions provide long-term power purchase agreements (PPAs) to successful bidders, ensuring a stable revenue stream for solar energy producers. This initiative has attracted significant investment in the solar sector, boosting both local production and installation of solar panels.

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Following are the notable solar projects in Colombia:

El Paso Solar Park Colombia:

• Location: Cesar Department
• Capacity: 86.2 MW
• Developer: Enel Green
• Description: One of the largest solar parks in Colombia, El Paso Solar Park supplies clean energy to the national grid, supporting the country’s renewable energy goals.

Celsia Solar Bolívar:

• Location: Bolívar Department
• Capacity: 10.5MW
• Developer: Empresa De Energia Del Pacifico
• Description: This solar farm consists of over 33,000 solar panels and is part of Celsia’s commitment to expanding renewable energy in Colombia

La Sierpe Solar Park:

• Location: Sucre Department
• Capacity: 26 MW
• Developer: AAGES Devco Services; La Sierpe; TW Consultores Eficiencia Energetica
• Description: La Sierpe is another significant project contributing to the diversification of Colombia’s energy matrix with renewable sources.

Celsia Solar Yumbo:

• Location: Valle del Cauca Department
• Capacity: 9.8 MW
• Developer: Celsia
• Description: This solar park is situated on a former thermal power plant site, showcasing the transition from fossil fuels to renewable energy.

La Loma Solar Park:

• Location: La Loma
• Capacity: 187 MW
• Developer: Enel Green Power

Atlantico Sabanalarga Solar PV Park(Projected):

• Location: Atlantic
• Capacity: 240 MW
• Developer: Diverxia Infrastructure SL

EI Espinal Cubico Solar PV Park (Projected):

• Location: Tolima, Colombia
• Capacity: 10 MW
• Developer: Empresa De Energia Del Pacifico

Following are the lists of top solar companies in Colombia: ³⁴³⁵³⁶

Celsia:

• Overview: A leading energy company in Colombia, Celsia is heavily involved in renewable energy projects, including solar power. They have developed several solar farms and continue to invest in expanding their solar portfolio.
• Notable Projects: Celsia Solar Bolívar, Celsia Solar Yumbo.

Solen Technology:

• Overview: Solen is a leading company with more than ten years of experience and innovation in solar and wind energy projects in Colombia and Latin America that provides advice, consulting, design, project management, sales, distribution, installation, maintenance, and support of renewable energy solutions in Colombia through solutions that involve photovoltaic solar energy & wind energy.

Enel Green Power Colombia:

• Overview: Part of the Enel Group, Enel Green Power is a global leader in renewable energy. In Colombia, they are actively developing and operating solar and wind projects.
• Notable Projects: La Sierpe Solar Park, Guajira Solar Projects.

Trina Solar:

• Overview: A major global player in solar energy, Trina Solar is involved in the production of solar panels and the development of solar projects in Colombia.
• Notable Projects: El Paso Solar Park.

AES Colombia:

• Overview: AES Corporation is a global energy company that has a significant presence in Colombia, focusing on both conventional and renewable energy sources, including solar.
• Notable Projects: Various planned projects in La Guajira.

FRV (Fotowatio Renewable Ventures):

• Overview: FRV is an international company specializing in the development of renewable energy projects, particularly solar. They are actively expanding their footprint in Colombia.
• Notable Projects: Piedra Larga Solar Park.

Ecopetrol:

• Overview: As Colombia’s largest oil company, Ecopetrol has been diversifying its energy portfolio to include renewable energy projects, including solar.
• Notable Initiatives: Solar projects to power its own operations and reduce its carbon footprint.

Grenergy Renovables:

• Overview: A Spanish renewable energy company with a growing presence in Colombia, focusing on the development and operation of solar and wind projects.
• Projects: Various solar projects in the planning and construction phases.

Soltec:

• Overview: A leading manufacturer and supplier of solar trackers and mounting systems, Soltec is involved in numerous solar projects in Colombia, providing essential components for large-scale installations.
• Services: Supply of solar tracking systems and related services.