Colombia Power - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The colombia power market size was valued at 22.42 gigawatt in 2025 and estimated to grow from 24.18 gigawatt in 2026 to reach 35.29 gigawatt by 2031, at a CAGR of 7.86% during the forecast period (2026-2031). This report is Segmented by Power Source (Thermal, Nuclear, and Renewables) and End-User (Utilities, Commercial and Industrial, and Residential). The Market Sizes and Forecasts are Provided in Terms of Installed Capacity (GW).

Colombia Power Market Trends and Insights

Rising electricity demand from industrial & digital growth

Colombia’s digital economy plan aims for nationwide 5G rollouts and 63% internet penetration by 2026, while reducing data center electricity needs as mining and metallurgy shift to electric haulage and automated rigs. Energy demand increased by 5.48% year-over-year in February 2024, driven by the regulated household and small-industry segments, which require higher quality and more stable supply. Caribbean industrial parks absorb the largest loads, reflecting the growth of port logistics, agro-processing, and free-trade zones. Utilities respond with smart meters and time-of-use tariffs to flatten peaks, while self-generation reforms let factories sell surplus solar power into the Colombia power market.

Government renewable-energy auctions & incentives (Law 1715)

The 2024 reliability auction secured 4.4 GW of solar capacity at a record USD 18.2/MWh, guaranteeing 20-year revenue and derisking cash flows for global developers. Law 1715 offers income tax deductions, VAT relief, and accelerated depreciation, reducing the equity payback period to below five years for utility-scale assets. Self-generator caps increased from 1 MW to 5 MW, broadening participation to include agribusiness and retail chains. The ministry projects 2,550 MW of new renewable capacity in 2025, adding COP 3.7 trillion to GDP and sustaining Colombia's power market expansion.

Hydrology dependency & El Niño supply variability

Reservoir inflows plunged during El Niño 2024, tripling gas burn and pushing wholesale prices up 23% to COP 763.48/kWh. Bogotá imposed water rationing, exposing the water-energy nexus. The Colombia power market still leans on hydro for 50% of firm energy, so drought events hinder the growth outlook. Solar and wind yield higher during dry seasons, yet their ramp-up speed lags behind near-term deficit risks, keeping thermal standby capacity costly.

Other drivers and restraints analyzed in the detailed report include:

• Abundant hydro resources & favourable renewable potential
• Grid-modernisation investments led by ISA Intercolombia
• Social opposition & indigenous consultations delaying RE projects

Segment Analysis

Renewables delivered 69.85% of Colombia's power market share in 2025 on a 15.66 GW base, and they are on track for a 10.22% CAGR to 2031. Auctions steered 4.4 GW of solar at USD 18.2/MWh, driving utility pipelines in Atlántico, Cesar, and Córdoba. The Colombia power market size for solar could top 6 GW by 2027 if supply-chain logistics hold steady. Wind additions are lagging due to disputes in La Guajira, yet offshore solicitations have attracted nine global developers eager for 25-year concessions. Geothermal's first 1.17 GW tender in 2025 offers base-load potential that buffers hydro volatility.

Thermal fleets supplied essential peaking power during the 2024 drought, but mounting carbon pricing and fuel volatility are shortening dispatch windows. Gas discoveries, such as Kronos-1, may reassure supply after 2031; however, investors already favour hybrid solar-storage stacks for capacity credits. Small biomass and waste-to-energy plants fill rural niches, while tidal pilots gain grants along the Pacific coast. Together, these shifts consolidate a highly renewable system without compromising reliability, reinforcing the long-run appeal of the Colombia power market.

Complete Report Scope:

• By Power Source
  • Thermal (Coal, Natural Gas, Oil and Diesel)
  • Nuclear
  • Renewables (Solar, Wind, Hydro, Geothermal, Biomass & Waste, Tidal)
• By End User
  • Utilities
  • Commercial and Industrial
  • Residential
• By T&D Voltage Level (Qualitative Analysis only)
  • High-Voltage Transmission (Above 230 kV)
  • Sub-Transmission (69 to 161 kV)
  • Medium-Voltage Distribution (13.2 to 34.5 kV)
  • Low-Voltage Distribution (< 1 kV)

List of Companies Covered in this Report:

• ISAGEN SA
• Empresas Publicas de Medellin (EPM)
• Celsia SA ESP
• Enel Colombia
• AES Colombia
• TermoCandelaria Power Ltd
• Grupo Energia Bogota (GEB)
• ISA Intercolombia
• Prime Energia Colombia
• GENSA (Termopaipa)
• Vatia Energia
• Ventus Ingenieria SA
• Grenergy Renovables Colombia
• EDF Renewables Colombia
• Canadian Solar Colombia
• Trina Solar LatAm
• Atlantica Sustainable Infrastructure
• Ecopetrol - Generation Subsidiary
• Grupo Celsia - EPSA
• Siemens Energy Colombia

Additional Benefits:

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