With El Niño around the corner, there are shadows for coal supply in electricity generation
Carlos Cante, president of Fenalcarbón Photo: Courtesy
TL;DR
- Coal is becoming a strategic resource for Colombia's electricity system amid challenging energy conditions, including potential El Niño and gas supply issues.
- Thermal power plants, currently operating at 30-40% capacity, are expected to operate at full capacity by July as El Niño approaches, increasing daily coal demand to 18,000 tons.
- Fenalcarbón criticizes the government's energy transition strategy, stating it misunderstands the concept by weakening traditional fuel industries rather than integrating new energy sources.
- The weakening of the coal industry, especially small-scale mining, creates short-term supply uncertainty, while the industrial sector is returning to coal due to gas scarcity and high costs.
- The sector faces challenges in competitiveness due to stigmatization, with Colombia being urged to supply the world's last ton of coal while global consumption grows.
- The debate on coal should focus on technological advancements to reduce emissions rather than eliminating the resource, as seen in countries like China, Japan, and Korea.
- Expectations for the year are marked by uncertainty, with growing demand and persistent difficulties in small-scale mining, heavily influenced by the intensity of El Niño.