Big firms abandon wind energy plans in Colombia amid regulatory shifts, social issues and grid gaps

Wind energy development in Colombia, particularly in the La Guajira region, is facing significant challenges as major companies withdraw and projects come to a standstill, according to industry experts. Despite ambitious goals set by the government, only two wind farms are partially operational, with a total capacity of less than 32 megawatts, out of the 1.1 gigawatts awarded in a 2019 auction. Colombia has the potential to generate up to 18 gigawatts of wind energy, nearly double its current installed electricity capacity.

Several companies had brought equipment and infrastructure to Colombia around 2021 but faced obstacles such as limited grid connection infrastructure in La Guajira, regulatory changes reducing financial returns, and social and leadership challenges. Despite President Gustavo Petro’s commitment to reaching net-zero emissions by 2050, Colombia remains heavily reliant on fossil fuels, particularly oil.

Recent developments include the withdrawal of Enel from a wind energy project in La Guajira and the cancellation of two major projects by EDP Renewables. However, Colombian state-owned company Ecopetrol acquired nine solar and wind energy projects from Norway’s Statkraft, indicating a shift towards renewable energy. These projects are part of Ecopetrol’s strategy to reduce dependence on oil and gas and achieve net-zero goals by 2050.

Challenges such as regulatory delays and governance concerns raise questions about the pace and economic impact of the transition. Margarita Nieves, from the Colombian Offshore Wind Research Network, emphasized the need to expedite regulatory processes, consult with Indigenous communities, and improve electrical infrastructure. The Wayuu people in La Guajira are divided over wind energy development, with concerns about environmental and cultural impacts, lack of consultation, and deep-rooted social tensions affecting projects in the region.