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Colombia has significant potential to develop its renewable energy sector and has already introduced favorable policies to support this development. However, with an economy that continues to rely heavily on fossil fuels, President Petro will have to ensure economic stability and alternative employment to achieve a successful green transition.
The government hopes that the funding will help to attract a further $280 million from development banks and carbon finance markets. Based on this figure, it expects to stop 1.6 million tonnes of carbon dioxide from being released, or around 1 percent of Colombia’s annual carbon emissions.
gator thats what i thought too
Oil prices were also aided by the prospect of tighter supplies, with reports of Canadian wildfires pointing to potential disruptions in oil flows from North America. This comes with improving fuel demand thanks to the U.S. summer season.
Colombia has been gradually developing its renewable energy capacity for almost a decade, with Congress passing a law to promote the building of renewable energy projects in 2014. But by 2021, less than 1% of energy in the country came from renewable sources. And while former president Iván Duque introduced a general energy transition policy, his government also continued to promote the production of fossil fuels to support the economy.
Under Colombia’s new president, there is plenty of optimism surrounding the country’s renewable energy sector and its move away from oil and gas.
Currently, between 40% and 50% of the country’s oil exports come from coal and oil, and taxes from oil firm Ecopetrol provide around 9 percent of the government’s income.
Despite its ambitions, a recent report showed that nearly two-thirds of Colombia’s renewable energy projects due online in 2023 and 2024 are currently facing delays.
Colombia has significant potential to develop its renewable energy sector and has already introduced favorable policies to support this development. However, with an economy that continues to rely heavily on fossil fuels, President Petro will have to ensure economic stability and alternative employment to achieve a successful green transition. Further, while the country is attracting high levels of investment in its renewable energy sector, it must improve its complex regulatory and tax systems if it hopes to accelerate the development of its green energy capacity.
Oil rebounds as U.S. begins refilling strategic reserve
This month, Colombia’s National Hydrocarbons Agency (ANH) is expected to invest over $135 million in gaining a better understanding of the country’s renewable energy potential. This funding is part of the government’s four-year development plan, currently being debated in Congress. The government has already pledged not to grant any new hydrocarbon exploration and production contracts, although it will allow companies to continue operations under existing licenses.
Colombia has been gradually developing its renewable energy capacity for almost a decade, with Congress passing a law to promote the building of renewable energy projects in 2014. But by 2021, less than 1% of energy in the country came from renewable sources. And while former president Iván Duque introduced a general energy transition policy, his government also continued to promote the production of fossil fuels to support the economy.
hydrogen seems to be the next transition
good find gator
Colombia has significant potential to develop its renewable energy sector and has already introduced favorable policies to support this development. However, with an economy that continues to rely heavily on fossil fuels, President Petro will have to ensure economic stability and alternative employment to achieve a successful green transition. Further, while the country is attracting high levels of investment in its renewable energy sector, it must improve its complex regulatory and tax systems if it hopes to accelerate the development of its green energy capacity.
Oil rises as tightening supplies compete with economic concerns
a report released in April showed that nearly two-thirds of Colombia’s renewable energy projects due online in 2023 and 2024 are currently facing delays, largely due to growing political and regulatory risk concerns. The study, from the renewable energy association SER Colombia, revealed that just 28 of 80 projects are “advancing without problems.” Many have slowed due to complications in being granted environmental permits issued by licensing authority ANLA. New tax burdens, competition restrictions, and macroeconomic factors, including high interest rates and currency depreciation, have also created challenges.
Colombia wants to speed up discovery and development of its offshore gas reserves to avoid the need for imports and boost industries from power to petrochemicals. Neighboring Venezuela has offered to export gas, but top executives at Ecopetrol and other producers have said that the country must prioritize developing its own resources.
As much as 4 trillion cubic feet (TCF) of natural gas reserves could be confirmed in Tayrona, Travassos said, which makes it a very promising project along with the Gorgon ultra deepwater gas field by Ecopetrol and Shell (SHEL.L) and another deepwater venture by Occidental Petroleum (OXY.N) and Ecopetrol to begin drilling in 2025.
Colombia has significant potential to develop its renewable energy sector and has already introduced favorable policies to support this development. However, with an economy that continues to rely heavily on fossil fuels, President Petro will have to ensure economic stability and alternative employment to achieve a successful green transition. Further, while the country is attracting high levels of investment in its renewable energy sector, it must improve its complex regulatory and tax systems if it hopes to accelerate the development of its green energy capacity.
This month, Colombia’s National Hydrocarbons Agency (ANH) is expected to invest over $135 million in gaining a better understanding of the country’s renewable energy potential. This funding is part of the government’s four-year development plan, currently being debated in Congress. The government has already pledged not to grant any new hydrocarbon exploration and production contracts, although it will allow companies to continue operations under existing licenses.
Colombia will get the first pay-out of a $300m Climate Investment Funds pot for transmission lines, batteries, EV chargers and green hydrogen
Colombia is getting help from external actors to develop its renewable energy sector. In February, the Climate Investment Funds (CIF), one of the world’s largest multilateral climate funds, announced it would be lending Colombia $70 million at a low interest rate, to invest in its green transition. The funds will be used to build infrastructure to help renewable electricity reach communities and businesses, including battery storage and transmission lines. The government hopes that the funding will help to attract a further $280 million from development banks and carbon finance markets. Based on this figure, it expects to stop 1.6 million tonnes of carbon dioxide from being released, or around 1 percent of Colombia’s annual carbon emissions.
Colombia has been gradually developing its renewable energy capacity for almost a decade, with Congress passing a law to promote the building of renewable energy projects in 2014. But by 2021, less than 1% of energy in the country came from renewable sources. And while former president Iván Duque introduced a general energy transition policy, his government also continued to promote the production of fossil fuels to support the economy.
The Road Map projects that the internal demand for hydrogen in Colombia will reach thresholds of 1.6-1.8 Mt by 2050. There is also tremendous solar energy potential in the Guajira area alone, which is projected with the potential to reach 42 GW. If Colombia utilizes all its renewable potential to produce green hydrogen, after the conversion stage, it could obtain 3.2 Mt of hydrogen (5.8 Mt if offshore wind potential were fully exploited). All this to say, it is possible to supply hydrogen for internal demand with renewable sources in Colombia in the upcoming decades.
Colombia's Congress on Thursday approved a $247.4 billion four-year development plan, paving the way for the government of leftist President Gustavo Petro to implement social and economic reforms.
National Development Plans, presented to Congress by each new government, are generally financed with funds from annual budgets, royalties from oil and mining projects, and resources from municipalities and provinces across the country.
Petro's plan aims to cut the percentage of the population living in extreme poverty to single digits, use financial surpluses from coal and oil to secure a transition to clean energy, and hand over millions of hectares of land to poor farmers to increase agricultural production.
Currently, between 40% and 50% of the country’s oil exports come from coal and oil, and taxes from oil firm Ecopetrol provide around 9 percent of the government’s income.
Despite its ambitions, a recent report showed that nearly two-thirds of Colombia’s renewable energy projects due online in 2023 and 2024 are currently facing delays.
Hydrogen is the most abundant element in Earth’s atmosphere. It can be utilized as fuel, an energy carrier, and industrial raw material to store and transport energy. When produced from renewable energy, such as solar or wind, green hydrogen can be essential in the race to net zero. From Namibia to Canada, and Chile to the EU, policymakers are looking at hydrogen more than ever before.
There has been progress for this agenda in Colombia too. Last month, the public consultation deadline of the hydrogen road map concluded, which is available now as of September 30th
Colombia wants to speed up discovery and development of its offshore gas reserves to avoid the need for imports and boost industries from power to petrochemicals. Neighboring Venezuela has offered to export gas, but top executives at Ecopetrol and other producers have said that the country must prioritize developing its own resources.
As much as 4 trillion cubic feet (TCF) of natural gas reserves could be confirmed in Tayrona, Travassos said, which makes it a very promising project along with the Gorgon ultra deepwater gas field by Ecopetrol and Shell (SHEL.L) and another deepwater venture by Occidental Petroleum (OXY.N) and Ecopetrol to begin drilling in 2025.
With the existing contracts we're going to have the great challenge of making the search for oil more efficient and more effective," Roa said during a call with analysts, adding he hopes new oil and gas auction rounds take place in the future.
Ecopetrol has 48 exploration contracts available where the company can be more aggressive in its search for oil and gas, Roa said, adding new finds could be discovered at 30 existing production contracts, which would boost the company's reserves.
Colombia's Ecopetrol to boost exploration, warns of production hit
Happy Mothers day to all the great Moms out there and prayers for those who have lost their Mom.
good luck to the longs
The Road Map projects that the internal demand for hydrogen in Colombia will reach thresholds of 1.6-1.8 Mt by 2050. There is also tremendous solar energy potential in the Guajira area alone, which is projected with the potential to reach 42 GW. If Colombia utilizes all its renewable potential to produce green hydrogen, after the conversion stage, it could obtain 3.2 Mt of hydrogen (5.8 Mt if offshore wind potential were fully exploited). All this to say, it is possible to supply hydrogen for internal demand with renewable sources in Colombia in the upcoming decades.
Andres Bitar, acting president of the National Hydrocarbons Agency, ANH, told Reuters that the government hadn’t taken any decision regarding the idea of blocking new oil and gas exploration projects.
“The main message that is very clear from the government is that it’s not a decision that’s written in stone,” Bitar said.
Speaking on the sidelines of a conference in Saudi Arabia earlier this year, Goldman’s global head of commodities research Jeff Currie predicts that oil prices could climb back above $100 a barrel this year
Oil faces a 'serious problem' by 2024 as production capacity runs out, warns Goldman Sachs
The Colombian Government is completely invested in decarbonizing the economy. As stated in their updated National Determined Contribution, they have pledged to reduce Greenhouse Gas emissions by 51% by 2030 compared to 2010 levels. The country is also assessing a domestic emissions trading system to include a carbon tax that will open the door to blue hydrogen technologies while green hydrogen reaches maturity.
Currently, the global oil market is probably slightly oversupplied. It's going to flip to being undersupplied sometime in the late second quarter or early third quarter," Tortoise portfolio manager Rob Thummel told Yahoo Finance Live.
Stay ahead of the market
"When the oil market is undersupplied, typically you see a positive price response. So we would expect oil prices to rise a bit," said Thummel.
Oil market will 'flip to being undersupplied' in coming months, says strategist
The main objective of Colombia’s Hydrogen Road Map is to facilitate the development and implementation of more green hydrogen countrywide. This process will enable the country to reduce carbon emissions and meet its ambitious climate commitments under the 2015 Paris Agreement. But to get there, they will need to achieve several steps and milestones in the short, medium, and long term.
The Road Map projects that the internal demand for hydrogen in Colombia will reach thresholds of 1.6-1.8 Mt by 2050. There is also tremendous solar energy potential in the Guajira area alone, which is projected with the potential to reach 42 GW. If Colombia utilizes all its renewable potential to produce green hydrogen, after the conversion stage, it could obtain 3.2 Mt of hydrogen (5.8 Mt if offshore wind potential were fully exploited). All this to say, it is possible to supply hydrogen for internal demand with renewable sources in Colombia in the upcoming decades.
Results in Sustainable Infrastructure: Energy and Transport in Colombia
To date, Colombia has seen excellent results derived from the resources provided by the UKSIP. In October 2019, UKSIP supported the design of an innovative energy auction, financing studies about guarantees and a risk and bankability analysis of the awarded projects. Similarly, it provided support to the Energy Sector Transformation Mission that is restructuring the country’s energy sector. The auction’s results will be essential in the country’s Non-Conventional Renewable Energy (NCRE) expansion, which will increase renewable energy capacity from less than 1% in 2018 to 12% in 2022. Hence, support from UKSIP is one of the fundamental reasons why the government will exceed its goals in terms of NCRE capacity. This translates into reaching 2,250 MW, 66% more than what was targeted (1,500 MW) in the Government’s National Development Plan 2018-2022.
Analysts forecast an emerging supply deficit for the second half of the year, pointing to an OPEC report on Thursday, which said the producer group expects July-December demand for its own crude to be 90,000 barrels per day (bpd) higher than previously projected.