Solar and wind power in Colombia: 2022 policy overview

Colombia possesses significant wind and solar potential, particularly in the La Guajira region, though these sources represented only 1.5% of the capacity mix in 2022. The document details a robust framework of incentives—including tax deductions and VAT exemptions—and predicts that approved projects could increase the solar and wind share of the capacity mix to nearly 40% by 2027. It also examines financing mechanisms, environmental licensing, and the integration of social safeguards such as Free Prior Informed Consent and benefit-sharing schemes for Indigenous and Afro-Colombian communities.

• Colombia has substantial untapped wind and solar energy potential, estimated at 32 GW for solar and 30 GW for wind. The La Guajira region is particularly significant, holding 18 GW of the national wind power potential with average wind speeds of 9.8 m/s.
• Despite high potential, solar and wind energy had a very low share of the capacity mix in 2022, with solar at 1.5% (290 MW) and wind at 0.1% (18.4 MW). However, if approved projects enter operation, their combined share could reach nearly 40% by 2027.
• The Colombian government provides several financial incentives for renewable energy investments, including a VAT exemption for equipment and services, import duty exemptions for non-locally produced equipment, and an income tax deduction of 50% of the investment value for up to 5 years (which can be extended to 15 years).
• Specific mechanisms exist to ensure benefit sharing with local communities. Projects over 10 MW must transfer 1% of gross energy sales to the project area of influence, with 60% of that amount designated for Indigenous or Afro-Colombian communities if present.
• Renewable energy deployment is linked to job creation, particularly in La Guajira, where 16 planned wind parks are expected to create approximately 11,000 jobs by 2023–2024. Nationally, solar sector employment grew from 360 in 2020 to 2,381 in 2021.
• Gender disparity is evident in the workforce of renewable energy projects. For instance, women made up 15% of employees at the 187 MW La Loma solar park and approximately 38% at the 61 MW San Fernando solar park.

APA

Araújo, J. V., & Cabré, M. M. (2023). Solar and wind power in Colombia: 2022 policy overview. Stockholm Environment Institute. https://www.sei.org/wp-content/uploads/2023/03/solar-wind-colombia-sei2023.015.pdf

Chicago

Araújo, José Vega, and Miquel Muñoz Cabré. Solar and wind power in Colombia: 2022 policy overview. Stockholm Environment Institute, 2023. https://www.sei.org/wp-content/uploads/2023/03/solar-wind-colombia-sei2023.015.pdf.

Wikipedia

{{cite report |last1=Araújo |first1=José Vega |last2=Cabré |first2=Miquel Muñoz |title=Solar and wind power in Colombia: 2022 policy overview |publisher=Stockholm Environment Institute |date=March 2023 |url=https://www.sei.org/wp-content/uploads/2023/03/solar-wind-colombia-sei2023.015.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{arajo2023solar, author = {Araújo, José Vega and Cabré, Miquel Muñoz}, title = {{Solar and wind power in Colombia: 2022 policy overview}}, institution = {Stockholm Environment Institute}, year = {2023}, month = mar, url = {https://www.sei.org/wp-content/uploads/2023/03/solar-wind-colombia-sei2023.015.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }