The central actor of this energy transition is the people.

The transition in Colombia must be fair and maintain energy security in the country, said Colombia's Minister of Mines and Energy, Omar Andrés Camacho, in an interview with the Colombian Petroleum and Gas Association (ACP). He added that the hydrocarbon industry must adapt to the management of new energy sources.

The Minister spoke about energy security in the country as a priority for the transition, which aims to make the energy matrix more resilient to climate phenomena. He noted that Colombians are at the center of the transition and that, for this reason, the Government promotes initiatives such as energy communities.

Both the Government and the industry agree that energy security is key for the country to achieve its goals in sustainable development, economic reactivation, and even to achieve a fair energy transition; how to maintain this energy security while advancing with the transition?

Omar Andrés Camacho, Minister of Mines and Energy: The reliability of our electrical system depends on generating more renewable energy and advancing the energy transition. We have significant regulatory and licensing challenges, but we are making progress in diversifying our energy matrix, as evidenced by the latest reliability charge auction that allocated 99% of firm energy to renewable sources. The Colombian energy matrix is dominated by hydraulic and thermal energy, produced from hydrocarbons such as diesel, gas, and coal. Through the 6G Plan, we seek to diversify the energy matrix with Non-Conventional Renewable Energy Sources (FNCER), such as solar and wind, reduce greenhouse gas emissions, and ensure that our electrical system is safe and much more resilient to climate phenomena, such as El Niño.
By 2026, the goal is to reach 6GW in generation capacity from FNCER. This is an ambitious goal that will require large energy generation projects and others for transmission that will allow new wind and solar parks to connect to the National Interconnected System. In our Government, we have made a significant contribution to the transformation of the country's energy matrix: nearly 2 GW of FNCER make up the new net generation capacity, which implies a growth of nearly 10 times compared to what we received from previous governments.

What role do oil and gas, their exploration and production in the country, play in guaranteeing energy security for Colombians?

O.A.C.: We work closely with the hydrocarbon industry to ensure that the exploration and production of oil and gas in the country is done efficiently and responsibly with the environment. Additionally, we also focus our efforts on ensuring a better and more diverse supply of fuels in response to climate change commitments and achieving a push towards a fair energy transition. For this, we have nearly 20 million hectares designated for the exploration and exploitation of hydrocarbons throughout the country.
However, the hydrocarbon sector must also adapt to the management of new energy sources. We are taking steps in that direction.

Sector analyses show a decline in exploratory activity for oil and gas in the country, as well as in reserves, which would have consequences for energy security and self-sufficiency. The Ministry has announced strategies to boost exploration and increase production, what measures are they referring to? And what results do they expect to achieve from them?

O.A.C.: We have worked on inter-institutional coordination strategies and on the regulatory modernization of the sector to achieve greater efficiency in the exploration and exploitation of existing contracts, and the realization of offshore gas resource reserves, through timely regulatory development, enabling transportation logistics, and converting existing infrastructure. To achieve this, we promote greater institutional coordination and regulatory modernization. For example, through Agreement No. 3 of 2023, by which the National Hydrocarbons Agency (ANH) can contract the operation and management of productive assets that become property of the Nation. Or Resolution No. 40745 of 2023, which regulates and enables multiphase pipelines. The modification of Resolution No. 181495 of 2009, which seeks to modernize measures regarding the exploration and exploitation of hydrocarbons to make contract and agreement operations more efficient.
The idea is also to advance the reconversion of existing pipeline infrastructure to optimize its use, and strengthen institutional presence in the territory, through the Territorial Hydrocarbons Strategy E.T.H, which aims to address the causes of social, public order, and environmental conflict that may arise in existing contracts. We seek to promote the strategy for reactivating suspended contracts, monitor the current recovery factor and the expected ultimate factor of the fields in exploitation within the existing contracts and agreements, identify and classify undeveloped discovered resources, and strengthen the monitoring of exploratory activity in previously assigned areas, among other measures we have already taken.

In gas, with the outlook of shortages starting in 2025, what measures is the national Government working on or will it adopt to promote self-sufficiency, increase reserves, boost production, and ensure supply?

O.A.C.: According to the technical study for the adoption of the Natural Gas Supply Plan 2023-2038, published by UPME in June 2024, Colombia is capable of meeting all its natural gas consumption needs for those years. This is with national production plus import capacity, for which actions and development of infrastructures that enable the availability of fuel in different scenarios are needed.
In addition, the strategies worked on by the ANH are progressing to improve the efficiency of contracts for gas production, providing the greatest support, accompaniment, and monitoring of production, evaluation, and exploration activities, to contribute to the increase of reserves and gas production.

One of the major challenges lies in the gas transportation infrastructure, what alternatives has the Ministry evaluated to promote and ensure the development of new gas transportation infrastructure, as well as the optimization of its remuneration?

O.A.C.: The Ministry of Mines and Energy, through Resolution 40745 of December 20, 2023, seeks to promote the development of multiphase pipelines, which are crucial for enhancing the natural gas transportation system. They allow for the efficient transportation of different types of fluids, including gas, oil, and water, through a single infrastructure. This versatility not only optimizes operational costs but also improves transportation safety. Furthermore, pipelines facilitate the integration of various energy sources and are essential to ensure a constant and reliable gas supply. By implementing this technology, Colombia can strengthen its energy infrastructure, increase sector competitiveness, and contribute to a more sustainable energy transition.

How does the Ministry view the role of natural gas in the energy transition, considering that more gas is required for its advancement and support?

O.A.C.: The Ministry recognizes that natural gas plays a fundamental role in the country's energy transition. This fossil fuel, being less polluting than coal and oil, presents itself as a necessary bridge between fossil fuels and renewable energies. Additionally, Liquefied Petroleum Gas (LPG) is a versatile alternative that can be used in various applications, from transportation to energy generation in homes and industries. Its ability to be easily stored and transported makes it an attractive option to complement the supply of natural gas, especially in regions where natural gas infrastructure is not yet fully developed.

Let's talk about fuels, the country has just gone through situational events in the supply of fuels, due to technical incidents like in the case of jet fuel, and social issues during the transporters' strike. A limited supply system was evident, which requires structural solutions. Strategic storage is an opportunity to provide reliability to the system in the face of such contingencies. What signals will the Ministry give in the short term to promote this infrastructure? And how will it address the various challenges posed to the supply of fuels in the country?

O.A.C.: In compliance with the functions assigned by Article 2 of Decree 381 of 2012, the Ministry has made progress in the supply of fuels and the definition of prices and tariffs for gasoline and diesel (ACPM), ensuring the continuity of supply and adequate regulation in the country. To this end, supply committees are held biweekly where permanent communication is maintained with the agents of the fuel distribution chain, Ecopetrol and CENIT, to constantly monitor the status of liquid fuel supply in Colombia. The supply and demand of each of the actors are also reviewed, in order to better meet the needs. In cases of contingency, as occurred in previous weeks, extraordinary committees were held to evaluate specific cases daily and carry out inter-institutional coordination.

Article 246 of Law 2294 of 2023 empowered the national government to promote the construction of strategic storage infrastructure for liquid fuels, including gasoline, diesel, and their mixtures with biofuels (fuel alcohol and biodiesel), as well as LPG, in the border areas of the country.

As a consequence of the above, our Ministry is working on the project “By which the Unique Regulatory Decree of the Administrative Sector of Mines and Energy 1073 of 2015 is modified, in relation to the strategic storage of liquid fuels and their mixtures with biofuels and Liquefied Petroleum Gas, and other provisions are issued,” which was recently published for public comments.

However, it is worth noting that through the mechanism being proposed in the draft decree, the strategic storage infrastructure for liquid fuels and their mixtures with biofuels, as well as LPG, will be promoted through the recognition of a charge or reliability margin.

Minister, how do you see the role of companies in the hydrocarbon sector in the agenda and common objectives to contribute to the development of the territories?

O.A.C.: For the development of the territories, the Ministry is promoting programs such as energy communities and the wood substitution program. In a country where a significant part of the population still lacks access to modern and sustainable energy sources, these initiatives become key tools to improve quality of life, promote economic development, and achieve responsible use of natural resources.

Energy communities allow residents of rural and remote areas to generate and manage their own energy, using renewable sources such as solar and wind. This approach empowers communities and promotes energy self-sufficiency, reducing dependence on fossil fuels and minimizing environmental impact.

On the other hand, the wood substitution program is essential to combat energy poverty and mitigate the effects of using traditional fuels on health and the environment. By promoting cleaner alternatives, such as natural gas or LPG, air quality is improved and the natural environment is protected, while providing families access to more efficient and safer technologies.

How has the country's energy transition progressed in these two long years of government, and in a context where global policies have shifted towards ensuring energy security and self-sufficiency?

O.A.C.: The energy transition is a transformation that is not limited to changing one generation source for another. We can affirm that there are various paths to transition, and this Government has given them a different emphasis compared to past governments' initiatives. While the existing elements serve as a foundation, our approach to justice implies an acceleration of the transition process. For this: We multiplied the capacity for clean energy generation in Colombia by more than 10: when we started as the Change Government on the path of a Just Energy Transition, there were 0.16 GW from non-conventional renewable energy sources. Today we have almost 2 GW of clean energy generation. Additionally, with the conclusion of the last firm energy supply auction for reliability charges, nearly 5 GW of new solar energy would enter, modifying the country's energy matrix and making approximately a quarter of energy generation come from NCRES.

We are democratizing energy and, thus, empowering people: the energy transition centers around people, communities, and seeks to empower them. The democratization of energy allows it to reach areas that have not had access to stable, clean, and economically viable energy. Our strategy for energy communities and energy municipalities promotes self-generation of energy by citizens and territories, making energy more affordable and promoting community associativity. We have more than 17,300 qualified communities, 2,475 focused, and 1,000 prioritized for implementation. There are already more than 100 energy communities implemented with 10,000 benefited users.

The just energy transition has a clear path: we are about to publish the final documents of the TEJ roadmap. This document is the diagnosis and the path for the next 25 years to transform Colombia into an energy sovereign, developed country with a sustainable economy and high added value.

What are the next steps that the government sees for the energy transition in the country?

O.A.C.: We are advancing in very ambitious projects for the country. One of them is related to hydrogen, a key energy source for the transition as it serves as an energy vector for heavy cargo transport and industry, in cases where it is impossible to electrify mobility. We have potential for green hydrogen production in the country from the use of Non-Conventional Renewable Energy Sources, identified in La Guajira, Barranquilla, Cartagena, Barrancabermeja, Sogamoso, Mosquera, Manizales, Medellín, Saldaña, Yumbo, Palmira, and Buenaventura.

Offshore wind energy generation is an advance that we need to deepen. It is worth noting that we are the first country in Latin America and the Caribbean to launch a competitive round for the allocation of offshore wind energy generation projects, and by harnessing this technology at sea, we aim to increase our generation by 1 to 3 GW of energy and generate 4,000 jobs per project.

Additionally, we need to advance in productive reconversion for decarbonization and reindustrialization. We are looking to guide mining towards the transition and towards the production of strategic minerals, with an activity that respects ancestral and small-scale mining, in addition to large-scale mining, and that is sustainable.

How are the economic and development differences present in the different regions of the country taken into account?

O.A.C.: The central actor of this energy transition is the people. Therefore, the work should not be to think about energy only from the development of certain economic zones to the detriment of others, but to bring energy so that people can develop their lives with dignity. Strategies such as Energy Communities, life corridors, the new mining law, or electromobility strategies seek to democratize energy, transportation, and dignify mining. Additionally, we are a Government characterized by dialogue and listening to communities.

What are the main challenges of the transition in Colombia and how to leverage the resources generated by this sector to support the transition?

O.A.C.: Climate vulnerability: the El Niño phenomenon and our dependence on hydroelectric generation reveal our difficulties in adapting to the challenges of climate change. We need to achieve a cleaner, more diverse, and sustainable energy matrix.
Taking the sector out of war: the mining-energy sector has been linked to armed conflict. Our strategies have been aimed at ending the conflict and contributing to peace. Strategies such as the National Rural Electrification Plan, Energy Communities, or the shift in focus from mining to energy transition allow for the promotion of economic and social development in the areas most affected by war.

Diversification of the energy market: energy generation is concentrated in very few hands, making energy rates inefficient and causing socioeconomic inequality. Energy communities contribute to market diversification, more efficient prices, and the reduction of inequity in the generation market.

Finally, Minister, how can the security and social conflict conditions faced by the sector in the regions be improved?

O.A.C.: As we have indicated, the mining-energy sector has historically been linked to the ravages of war, and communities have often suffered these consequences. Our dialogue strategy with communities through popular assemblies and the strengthening of social processes with energy communities has been effective, allowing prior consultations to be conducted efficiently, swiftly, and respecting the popular will. The reduction of social conflict is achieved through respect and the strengthening of the life projects of the communities.

On the other hand, initiatives such as the Interinstitutional Hydrocarbons Committee, which includes the Ministry of Mines and Energy, the ANH, the Ministry of Defense, and other institutions, allow for monitoring and coordinated action regarding these sectors in terms of defense, to prevent organized armed groups from affecting the country's energy sovereignty.