Context
In 2020, Colombia deepened its climate commitments by revising its Nationally Determined Contributions (NDCs) to achieve a 51% reduction in emissions by 2030, a significant increase from the initial 20% target. This ambitious move signals Colombia’s commitment to a carbon-neutral future. Central to this effort is the energy sector, led by the Ministry of Energy and Mines (MINENERGIA), which aims to cut emissions by 11.2 MtCO2e by 2030. An innovative strategy within this plan is the adoption of the Energy Communities (EC) model. This model encourages local communities to actively participate in energy production through self-generation and distributed energy resources. This approach promotes democratising energy access, enhancing social inclusion, and driving sustainable economic growth within these communities.
Goals and approach to transformational change
The project focuses on implementing the EC model nationwide to support Colombia’s ambitious commitment. It will introduce 101.5 megawatts (MW) of new distributed renewable energy capacity. The project’s primary objectives include:
1) strengthening the policy-making and institutional framework at national and subnational levels to create a supportive environment for the expansion and replication of the EC model,
2) increasing public and private investment to ensure the effective operation and scalability of ECs, and
3) enhancing the ability of key stakeholders to organise and manage ECs that deliver clean, sustainable energy to low- and middle-income groups, thereby improving the well-being of vulnerable communities.
Components and support mechanisms
The Financial Cooperation (FC) component consists of two main interventions: an energy community preparation fund and a credit guarantee fund. The project intends to leverage EUR 53.1 million and EUR 70.85 million of public and private co-funding respectively.
The Technical Component (TC) will create the enabling environment for ECs through regulatory, develop the capacities of authorities, develop an MRV framework, provide financial technical assistance and train communities on EC management.
It also aims to generate 36,797 green jobs, with half of these opportunities being held by women.
Long-term impact
Throughout implementation, the project aims to reduce at least 213,511 tCO2e. Additionally, the project anticipates significant direct and indirect reductions in GHG emissions amounting to 2.03 MtCO2e over the lifetime of the technology. Furthermore, the project will support the implementation of 319 ECs benefit around 52,000 people, of which at least 50% are women and historically excluded groups.
