Energy & Utilities

The energy sector reached a milestone in 2012 as crude oil production surpassed 1m barrels per day. Colombia’s current generation capacity of 14,420 MW is supplied primarily by hydroelectric power, which accounts for just over two-thirds of the total, with the remainder coming primarily from natural gas- and coal-fired thermoelectric plants. Since 2008 natural gas production has seen private sector output grow at 22.9% year-on-year. The sector has also seen the emergence of a biofuels industry as legislation mandating the use of biofuel mixes created domestic demand for the alternative energy source. Deficient infrastructure and security concerns continue to pose a challenge to the sector. This chapter includes interviews with Frederico Renjifo Vélez, Minister of Mines and Energy; Juan Esteban Calle, Empresas Públicas de Medellín; and Germán Arce Zapata, President, National Hydrocarbons Agency.