Energy Territories

Promoting energy self-sufficiency and regional development through the installation of 200 photovoltaic systems.

Summary

Objective

Promote energy autonomy and territorial development through the deployment of 200 × 1 MW photovoltaic systems that reduce electricity costs, improve quality of life, and generate income via surplus energy sales.

Key Goals

Deploy 200 photovoltaic farms of 1 MW each by 2026 (total 200 MW)
Reduce energy tariffs in vulnerable municipalities
Generate commercially viable surpluses sold to the grid
Reduce multidimensional and energy poverty
Strengthen territorial energy governance

Market Opportunity

More than 427 municipalities with unmet basic energy needs
High demand concentration in Andean and Caribbean regions due to elevated tariffs
Distributed generation market with estimated potential of USD 9.6 billion and 7,424 MWp projected capacity
Growing demand in rural areas and regions undergoing productive transition
High average solar irradiation in Colombia: 4.5 kWh/m²/day

ESG Considerations

Environmental: Deployment of photovoltaic technology to diversify the energy matrix and combat climate change.

Social: Reduction of multidimensional and energy poverty. Boost to local economic development and improved community quality of life.

Governance: Strengthening of territorial energy governance. Democratization and decentralization of energy access and generation.

Financial Indicators (per plant)

Investment per plant

COP 7.2 billion

PPA tariff

COP 600/kWh

Annual exchange value

COP 1,517 million

Users benefited

600 users (~90 kWh/month)

ROI

12%

NPV (per plant)

COP 10.5 billion

Useful life

25 years

Investment payback

6–8 years

OPEX

10% of energy generated

Project Timeline

Structuring

Duration: Jan 2022 – Jun 2023

Milestone: Strategy and model defined

Implementation

Duration: Jan 2024 – Dec 2026

Milestone: Installation of 200 solar farms

Monitoring

Duration: Apr 2024 – Dec 2026

Milestone: Territorial capacity-building and support

Business Model

Cost Structure

Structuring: COP 300 million
Implementation: COP 6.3 billion
Monitoring: COP 450 million
Equipment, civil works, logistics, communication systems, specialized labor, etc.

Value Proposition

Low-cost, low-emission electricity supplied through PPAs
Democratized access to clean energy
Strengthened economic and social development in participating territories
Reliable and clean energy supply

Revenue Streams

Energy sales to territorial entities
Retail energy sales
Commercialization of surplus energy to the national grid

Key Partners

Ministry of Mines and Energy
Project Developers
Territorial Entities

Customer Segments

Vulnerable municipalities
Public buildings
Residential users (depending on implementation model)

Key Activities

Maintenance and operation of the energy generation infrastructure

Channels

PPA contracts signed with territorial entities

Risk Plan

Event	Probability	Impact	Rating	Mitigation	Contingency
Inability of territorial entity to perform O&M	Medium	High	High	Prior capacity evaluation	Assign O&M to qualified third party
Denial of connection point	Medium	High	High	Early meetings and technical assessment	Relocate project
Political barriers	High	High	High	Long-term PPAs	Multi-year institutional agreements
Delays in environmental licensing	Medium	Medium	Medium	Technical support and compliance	Extended timeline
Low solar irradiation	Low	Medium	Medium	Site studies	System design adjustments
Technical failures	Low	High	Medium	RETIE-standard design and maintenance	Emergency and maintenance protocols