Colombia: in search of energy sustainability

For Colombia to improve its energy efficiency, it is necessary, among other measures, to strengthen the existing regulation so as to stimulate public and private investments. These investments should help use less resources and obtain more benefits, in an exercise that must contribute to the country's energy sustainability. 

These are some of the conclusions of the Sixth Energy Efficiency Seminar, organized by Andesco on April 21st in Bogota, which was supported by the Ministry of Mining and Energy, the Colombian Committee of the World Energy Council, and the Financiera de Desarrollo Territorial (Territorial Development financing institution).

In addition, three of the most important barriers for the consumption of energy were pointed out during the event: 

• Clients underestimate the benefits and returns of investments in these projects. For example, CAF estimates that Colombia has an investment potential for energy efficiency projects that exceeds USD 30 million, which ranges from the substitution of industrial ovens by more efficient models and thermal isolation of industrial pipes, to the installation of sensors of hotel occupation to control the air conditioning units.  
• When investing in energy efficiency projects, greater importance is given to projects dedicated to reducing costs than to projects that increase revenues. There are projects where making an investment from the beginning is less profitable than making an investment to improve or update a system which may, in the future, save on costs. 
• Energy efficiency is not included as a potential area when seeking productive improvements in the energy sector. 

At the same time, these are the barriers associated to the generation of energy: 

• Complexity in the savings measurements in performance contracts
• Limited financial capacity to fund the projects 
• Financial entities do not know the potential of energy efficiency, therefore, they do not design structured products that promote investments in these areas.