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Colombia Accelerates the Development of its Geothermal Potential

Colombia is intensifying the development of geothermal energy to diversify its energy mix. The country is relying on public-private partnerships and favorable regulations to attract the necessary investments.

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Geothermal energy represents a major axis for Colombia’s energy diversification strategy, aimed at reducing its dependence on fossil fuels. The country benefits from significant geothermal resources, primarily located in the Andes Mountains. The National Hydrocarbons Agency (ANH) has identified several sites suitable for developing this technology, and recent geological studies confirm the potential of several areas.

Colombia aims to catch up with other Latin American countries like Mexico, which already utilizes geothermal energy on a large scale. Currently, most of Colombia’s energy infrastructure still relies on fossil fuels and hydropower. In 2023, the government set ambitious targets to integrate more renewable energies into its energy mix, with a particular focus on geothermal. This strategy is driven by the need to stabilize electricity production while strengthening national energy security.

Regulation and Foreign Investments

To attract investors in this sector, the government has implemented a specific regulatory framework for geothermal projects. The reforms include tax incentives, simplified licensing procedures, and legal guarantees for private operators. In parallel, the Ministry of Mines and Energy is collaborating with academic institutions and sector experts to refine the technical and environmental criteria applicable to geothermal projects.

The legislative reforms also aim to align geothermal energy with other energy initiatives, such as wind and solar energy. These efforts have sparked interest from international players. In 2022, a consortium led by the Italian company Enel Green Power invested in the exploration of a geothermal site in the department of Caldas. This investment marks one of Colombia’s first large-scale projects in this field. However, the country will need to overcome technical challenges, particularly those linked to the complex topography of the Andes, to make these projects a reality.

Comparison with Global Trends

Globally, geothermal energy has shown mixed development. The United States, Iceland, and Indonesia continue to dominate the market, thanks to favorable geological conditions and stable regulatory frameworks. In Southeast Asia, the Philippines and Indonesia have multiplied geothermal projects, supported by public financing and international partnerships. In this region, geothermal energy serves as a credible alternative to meet growing energy needs and mitigate risks associated with the volatility of fossil fuel prices.

Meanwhile, in Europe, countries like Germany and France are focusing on technological innovation to increase the profitability of geothermal projects in low-thermal-potential areas. Initiatives such as Enhanced Geothermal Systems (EGS) enable energy capture in sites previously considered non-viable. These technological advancements could open new possibilities for countries like Colombia, whose geothermal potential remains largely untapped.

Growth Prospects and Challenges

Colombia still faces several challenges before becoming a leading regional player in geothermal energy. The lack of dedicated infrastructure, insufficient technical training, and difficult access to mountainous areas are major obstacles. Additionally, managing environmental risks, such as sulfur emissions and impacts on local ecosystems, will require rigorous evaluation. These constraints could delay the implementation of projects, despite an estimated geothermal potential of more than 1 GW.

Nevertheless, the government’s political will to promote decarbonation, combined with the opportunities offered by new international partnerships, positions Colombia on the path to more sustainable energy development. The medium-term goal is to achieve a production capacity of 500 MW by 2030, while increasing the share of renewables in the national energy mix. The success of this transition will depend on Colombia’s ability to attract investors, stabilize the regulatory framework, and overcome the technical challenges inherent to geothermal projects in mountainous regions.

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