There is a gap of about 6% compared to current demand conditions: Andeg on energy deficit
Alejandro Castañeda, president of Andeg, talks about the challenges of the mining-energy sector. Photo: Courtesy: Andeg
TL;DR
- The mining-energy sector is facing challenges like reduced oil and gas reserves, decreased energy supply, and increased gas imports.
- There is an immediate financial issue with the government owing $2.6 trillion in unpaid energy subsidies to distributors and commercializers.
- An additional $1.7 trillion is associated with the intervention of Air-e, impacting service in Atlántico, Magdalena, and La Guajira.
- Colombia is projected to face an energy deficit by 2028, with a shortfall of approximately 6% compared to current demand.
- Andeg suggests the next government must quickly implement new auctions and send clear signals to encourage investment in energy projects.
- Regulatory issues include a lack of personnel and politically motivated decisions, leading to investment uncertainty.
- New environmental taxes will increase the contribution of hydroelectric and thermal plants, with funds allocated to autonomous regional corporations and municipalities.
- A wealth tax of 0.5% on generation companies is expected to add a significant financial burden.
- A proposed 'tariffs law' is considered harmful and creates further uncertainty, with efforts underway to modify it.
- The government's focus on renewable energy exclusively, while excluding conventional sources, is seen as a contributing factor to the current situation.