Colombia Renewable Energy - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)

Colombia Renewable Energy Market Analysis

The Colombia Renewable Energy Market size in terms of installed base is expected to grow from 16.62 gigawatt in 2025 to 27.39 gigawatt by 2030, at a CAGR of 10.51% during the forecast period (2025-2030).

Colombia's renewable energy market is shifting from hydrocarbon dependence to a diversified power mix as the government executes a USD 40 billion socio-ecological transition program announced in October 2024. Hydropower remains dominant, yet solar photovoltaic (PV) additions are accelerating on declining levelized costs, stronger transmission links, and multilateral finance inflows. Corporate power-purchase agreements (PPAs) from miners, digital-infrastructure operators, and other large buyers are maturing rapidly, while improved auction design, multilateral finance, and a national transmission-expansion plan continue to expand the project pipeline. Currency depreciation and slow environmental licensing remain risks, but technology cost curves and policy visibility support sustained growth in the Colombia renewable energy market through the next decade.

Colombia Renewable Energy Market Trends and Insights

Renewable-energy auctions boost project pipeline

The 2024 auction awarded 4.4 GW of solar PV capacity, ensuring long-term price certainty that supports bankable financing. While annulment of Decree 570 delayed financial close for 1.21 GW of projects, a Special Follow-Through Commission now oversees implementation. Success ultimately depends on maintaining quorum at the Commission of Energy and Gas Regulation (CREG) and clearing outstanding environmental licences. Auctions have enlarged the Colombia renewable energy market by attracting first-time investors and diversifying technology portfolios. Regional concentration in La Guajira underscores the need for synchronous transmission build-out to absorb auctioned capacity.

Declining LCOE for solar & wind technologies

Utility-scale solar is already pricing on par with thermal generation, evidenced by Enel’s 486.7 MW Guayepo complex that reached financial close on merchant revenues. AI-enabled predictive maintenance lowers operational costs by about 40% and extends asset life, giving digital-savvy developers a margin edge. Wind economics remain sensitive to social-licence costs in La Guajira, yet tower-hub advancements and digital wind-resource assessment are narrowing that gap. Cost deflation accelerates capacity additions across all regions, making the Colombia renewable energy market more resilient to currency swings.

Grid congestion & curtailment risk in La Guajira

Transmission lags expose wind and solar projects to output caps that erode internal rates of return. Inter-American Development Bank assessments highlight a first-mover disadvantage where early entrants monopolize scarce grid capacity. Weather-correlation risk compounds curtailment when multiple plants peak simultaneously. Smart-grid controls and grid-scale batteries can mitigate congestion but require joint investment from generators and the national operator. Until the Collectora and Caribbean upgrades are fully operational, curtailment remains a material drag on the Colombia renewable energy market.

Other drivers and restraints analyzed in the detailed report include:

1. Access to multilateral climate finance
2. National transmission-expansion plan
3. Lengthy environmental licensing process

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Hydropower retained 88% capacity share in 2024, but solar PV is scaling fastest on a forecast 38% 2025-2030 CAGR. The 1 GW solar milestone achieved in 2024 underscores the rapid lift-off of utility-scale plants. Solar additions of 1,881 MW across 33 plants in 2024 quadrupled the previous year’s tally, even after regulatory delays. Wind potential is vast yet constrained by community opposition, while sugarcane bagasse and palm-oil waste biomass offer an untapped 50.2 × 10^6 GJ energy resource. Geothermal leases covering 1.17 GW are slated for auction in 2025, further diversifying the generation mix. Battery-coupled hybrids improve dispatchability and reduce curtailment risk, reinforcing technology diversification in the Colombia renewable energy market.

The Colombian renewable energy market size for solar is set to jump from 1.19 GW in 2024 to 8.82 GW by 2030, equivalent to a 40% share in new build. Hydropower additions slow yet remain vital for flexible peaking and water-management services. Emerging hydrogen-ready turbines and geothermal baseload reduce reliance on imported diesel in remote grids. Together, these shifts highlight resilience gains as the Colombia renewable energy industry progresses toward a more balanced portfolio.

The Colombia Renewable Energy Market Report is Segmented by Type (Hydropower, Solar PV, On-Shore Wind, Bioenergy, Geothermal, and Others), End-User (Utilities, Commercial and Industrial, and Residential), Connection Type (Grid-Connected and Off-Grid/Micro-Grid). The Market Size and Forecasts are Provided in Terms of Installed Capacity (GW).

List of Companies Covered in this Report:

1. Celsia S.A. E.S.P.
2. Empresas Públicas de Medellín (EPM)
3. Isagen S.A.
4. Enel Green Power S.p.A.
5. AES Colombia S.A.
6. Brookfield Renewable Partners
7. Ecopetrol – Low-Carbon Business
8. Acciona Energia
9. Vestas Wind Systems A/S
10. Siemens Gamesa Renewable Energy
11. Canadian Solar Inc.
12. Trina Solar Co.
13. Grenergy Renovables
14. Solarpack Corporacion
15. First Solar Inc.
16. Ventus Ingeniería S.R.L.
17. DNV
18. Orsted A/S
19. EDPR Colombia
20. Colibri Energy

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support