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Colombia’s Distributed Generation Potential

Admin by Admin
February 23, 2026
Reading Time: 5 mins read
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Colombia’s Distributed Generation Potential

With just over half of Colombia’s land area currently classified as Non-Interconnected Zones (NIZ), the country has the opportunity to simultaneously reach its emission reduction goals and provide access to renewable power to the entire country. The push for renewables is partly in response to the emission reduction targets that Colombia has set, which include a 51% reduction in emissions compared to a 2030 reference scenario. Rural areas of the country, which continue to rely heavily on diesel for energy generation, could instead adopt alternative forms of distributed power generation, such as solar microgrids and small-scale hydropower, to provide economic benefits to the country while reducing carbon emissions.

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Policies implemented by the Colombian government are converging into a comprehensive approach to enhancing rural electrification rates. This has thus far included incentives for renewable energy investment and tariffs to encourage distributed generation in rural communities. The reliance on diesel generators, which continue to supply the majority of power in these areas, is expensive and receives state subsidies to drive down the price. In 2020, the usage of diesel in NIZ reached almost 14 million liters a month, due to both the rise in demand and poor efficiency of the generators. The Colombian government has made strides to replace diesel due to the hazardous impact its emissions can have on health, the high cost of diesel transportation, and the opportunity for renewables in those areas.

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