Colombia's Domestic Coal Demand Hits Lows, Opening Door for Possible Rebound in 2026

TL;DR

Domestic coal demand in Colombia hit historically low levels in 2025.
Favorable climatic conditions led to high levels in hydroelectric reservoirs, reducing the need for coal-fired thermal power plants.
Regulatory decisions further limited the use of coal within the national energy system.
The reduced demand pressured coal prices downwards, falling below production costs for some segments, especially small-scale miners.
Producers faced increased tax and logistical costs, reducing their financial sustainability.
Potential factors for a rebound include reduced availability and price volatility of natural gas.
The possible occurrence of El Niño could impact hydropower generation, potentially increasing reliance on coal.
The future demand for coal is dependent on the interaction of climatic, regulatory, and energy variables.

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