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Installed capacity of photovoltaic solar energy in Colombia: An analysis ofeconomic incentives

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  • Manuela Castaño-Gómez

    (Universidad EAFIT)

  • John Jairo García-Rendón

    (Universidad EAFIT)

Abstract

Due to the abrupt drop in the worldwide energy generation levelized cost of non-conventionalrenewable technologies (in the case of the markets in the United States between 39 to 152 USD/MWhfor photovoltaic solar energy and between 26 to 50 USD/MWh for wind energy), the use of mechanismssuch as Feed in Tariff have been replaced by auctions, as a viable market mechanism to encourageinvestment on these generation sources. Based on Bass’s technology diffusion model, this paper analyzesthe impact of current incentives, considered in Law 1715 of 2014, on investment in photovoltaic solarenergy in Colombia. The main results of the large-scale project scenario show an installed capacity 1542MW of solar PV by 2030, which makes it the most profitable and the one with the highest growthpotential. The contribution in this paper is to survey the Colombian electricity market potential on theinclusion of solar PV

Suggested Citation

  • Manuela Castaño-Gómez & John Jairo García-Rendón, 2020. "Installed capacity of photovoltaic solar energy in Colombia: An analysis ofeconomic incentives," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 93, pages 23-64, Julio-Dic.
    • Handle: RePEc:lde:journl:y:2020:i:93:p:23-64
    DOI: 10.17533/udea.le.n93a338727
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    References listed on IDEAS

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    1. Palmer, J. & Sorda, G. & Madlener, R., 2015. "Modeling the diffusion of residential photovoltaic systems in Italy: An agent-based simulation," Technological Forecasting and Social Change, Elsevier, vol. 99(C), pages 106-131.
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    More about this item

    Keywords

    energy management? economic regulation? non-conventional renewable energy? technologicalinnovation.;

    JEL classification:

    • K2 - Law and Economics - - Regulation and Business Law
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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