How Colombia Can Overcome Regulatory Barriers to Unlock Its Renewable Energy Potential

AN EXCLUSIVE INTERVIEW WITH:

A Sector Poised for Growth but Stuck in Bureaucracy 

Colombia has demonstrated great potential in renewable energy, reaching an installed capacity of 2 gigawatts (GW) in 2024, marking significant growth compared to previous years. Additionally, by 2025, 19 new projects are expected to become operational, adding 670 megawatts (MW). However, this growth could be slowed by regulatory barriers that affect the implementation of new projects.

The Reality of Colombia’s Renewable Energy Market 

The renewable sector in Colombia faces several difficulties related to regulations and bureaucracy:

  • Delays in permits and licences: Obtaining environmental and technical approvals is a slow and bureaucratic process. Many companies report that processing times can extend up to two years.
  • Political and regulatory uncertainty: The lack of clarity in energy policies creates doubts among investors regarding the long-term feasibility of projects.
  • Prior consultations and social conflicts: 57% of halted projects in Colombia in 2024 are linked to tensions between local communities and developers, particularly in regions like La Guajira.

Impact on Investment and Sector Development 

Regulatory uncertainty has led to 47% of companies in the sector failing to complete their investments in 2024. The estimated investment in renewable energy for 2025 is $500 million, but this amount could decrease if barriers persist. Furthermore, the difficulty in developing projects in certain regions is causing investment to be concentrated in a few areas with fewer conflicts.

Solutions to Unlock Sector Growth 

To ensure the sustainable development of renewable energy in Colombia, it is essential to address these issues with concrete measures:

  • Streamlining regulatory processes: Establishing more efficient mechanisms for project approvals and reducing processing times.
  • Ensuring political and regulatory stability: Defining long-term policies to provide confidence to investors.
  • Strengthening dialogue with local communities: Implementing early participation strategies and mutually beneficial agreements to reduce social conflicts.
  • Promoting fiscal and financial incentives: Creating financing mechanisms and tax benefits for renewable energy projects.

If Colombia wants to attract investment and ensure energy security, it must act now. Cutting unnecessary bureaucracy, strengthening regulatory frameworks, and improving investor confidence will be key to unlocking the full potential of renewables. The time for change is now.

RELATED POSTS

August 26, 2025
Interview

Exclusive Interview: JA Solar on Driving Chile’s Renewable Future

In this exclusive interview, JA Solar highlights its role as a long-term partner in Chile’s energy transition. With cutting-edge innovations like DeepBlue 4.0 Pro and N-type TOPCon modules, the company is helping lower LCOE, strengthen project bankability, and accelerate renewable integration, while emphasising the need for transmission upgrades, regulatory clarity, and stronger public-private collaboration.
August 8, 2025
Interview

Exclusive Interview with Segio Ferrari, Director de Power Systems, Argentina, Paraguay and Uruguay

August 8th, 2025 London (The Net-Zero Circle). In this exclusive interview, Sergio Ferrari from Schneider shares how its SF₆-free AirSeT technology is helping Argentina and Latin America build cleaner, smarter and more resilient energy systems while accelerating the region’s transition to a decarbonized future.
July 24, 2025
Interview

Ignacio Mehech: “Chile’s biggest challenge is meeting global lithium demand while upholding social and environmental standards”

In this exclusive interview, Ignacio Mehech, CEO of CleanTech Lithium, outlines Chile’s strategic position in the global energy transition. He highlights the country’s potential to lead in renewable energy and critical minerals—especially lithium—while stressing the importance of accelerating project development without compromising environmental or social responsibility. Mehech also reflects on how transparency, collaboration, and community engagement are key to building long-term trust among stakeholders, and why Chile’s legal certainty and global openness will be instrumental to securing its role in the future of clean energy supply chains.