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Enabling Conditions for Bioenergy Finance and Investment in Colombia

image of Enabling Conditions for Bioenergy Finance and Investment in Colombia

To realise Colombia’s clean energy ambitions and enable the necessary mobilisation of finance and investment, the government has set forth a number of important policy strategies, including the 2018 Green Growth Policy, the 2019 National Circular Economy Strategy and the forthcoming 2022 Energy Transition Policy. These high-level policies all note the role clean energy solutions like sustainable bioenergy and waste-to-energy can play in supporting decarbonisation objectives. These solutions can also achieve a number of other socioeconomic ambitions, including improved reliability of energy supply, improved access to affordable and reliable energy in areas that are not connected to the national electricity grid, and reduced amounts of waste going to capacity-limited landfills. This report aims to support Colombia’s renewable energy ambitions, focusing on current clean energy trends, opportunities for bioenergy and measures that can increase finance and investment in those solutions. Through five case studies from Brazil, Chile, Colombia, India and Turkey, the report also considers the enabling environment and lessons learnt from bioenergy developments in different countries.

English Also available in: Spanish

Regulatory measures to improve the case for sustainable bioenergy

Policy reforms and market incentives played a critical role in enabling early growth of bioenergy cogeneration in the sugar and palm industries in Colombia. Over the last decade, the country’s regulatory framework for renewable energy has provided further clarity on the operational rules and remuneration for clean energy additions, such as bioenergy self-generation. Improving the transparency on grid-access rules and connection costs, whilst aligning incentives to encourage retailers to procure distributed energy generation, can further increase opportunities for bioenergy development. Strengthening the regulatory framework on waste management, for instance, to address low landfill and waste collection fees, will also improve incentives for bioenergy projects. Additional regulatory signals could include use of emissions trading and carbon pricing mechanisms to drive demand for clean energy sources like biogas for industry use.

English Also available in: Spanish

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