After two years of severe underperformance due to a nationwide drought brought on by ElNiño, Colombia's electricity sector was back to viability in 2017. We remain, however, of the view that inthe long term Colombia's power market will need considerable investments to diversify its energy supply tomeet increasing demand for power and the effects of climate change on its hydropower capacity.
Latest Updates And Structural Trends
The congressional ratification of a revised peace agreement between the Colombian government and theRevolutionary Armed Forces of Colombia (FARC) clears the final hurdle to the formal cessation ofhostilities. While the demobilisation of the FARC is all but assured, implementing the deal's morecontroversial provisions will remain challenging. Ultimately, peace's permanence will depend on theextent to which regions and populations formerly under the control of the FARC are able to participate inthe larger Colombian society and economy. Prolonged divisions among the populace pose a risk to ourexpectation of the deal's success.