Colombia's EPM Seeks Partners for Hydroelectric Projects Amid Energy Supply Expansion Plans
Key Ideas
- Colombia's EPM is inviting proposals for partnerships in new hydroelectric projects with a generating capacity of at least 5MW, aiming to boost investment in the sector.
- Investment in these partnerships is projected to reach 1tn pesos, approximately US$250 million, with projects in all development stages being considered.
- The country's hydropower sector has faced challenges due to socio-environmental concerns and El Niño-related droughts, but initiatives like green hydrogen production are offering new opportunities.
- EPM, alongside other organizations, is focusing on green hydrogen production using hydroelectricity, with plans to export to Europe and Asia, indicating a positive shift towards sustainable energy practices.
Colombia's public utility company Empresas Públicas de Medellín (EPM) is actively seeking partnerships for new utility-scale hydroelectric power projects to revitalize the sector. Companies interested in collaborating have until July 28 to submit proposals for projects with a minimum generating capacity of 5MW, with expected investment to reach 1 trillion pesos, equivalent to around US$250 million. The aim is to enhance Colombia's energy supply by expanding the country's hydropower infrastructure.
Despite hydropower currently contributing over 60% of Colombia's electricity supply, investment in new projects has declined due to socio-environmental issues and more frequent droughts linked to El Niño. The International Hydropower Association (IHA) has noted a slowdown in new developments in Latin America, pointing to various challenges such as regulatory uncertainties and competition from alternative energy sources like solar and wind power.
However, a promising opportunity for the hydropower sector lies in green hydrogen production. Initiatives like Universidad de Antioquia's pilot project with Ecopetrol aim to utilize small-scale hydroelectric plants to produce hydrogen for local industries and potential export markets. Similarly, companies like Opex are advancing projects to export green ammonia using hydroelectricity-powered electrolyzers.
EPM itself is ambitious in its green hydrogen targets, aiming to produce 100 tons per year in the short term and 400 tons per year within three years, with plans to export to Europe and Asia. These initiatives signal a positive shift towards sustainable energy practices and could potentially drive new demand for hydropower projects in Colombia, aligning with global trends towards cleaner energy sources.
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