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Solar PV generation in Colombia - A qualitative and quantitative approach to analyze the potential of solar energy market

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  • López, Andrea Ruíz
  • Krumm, Alexandra
  • Schattenhofer, Lukas
  • Burandt, Thorsten
  • Montoya, Felipe Corral
  • Oberländer, Nora
  • Oei, Pao-Yu

Abstract

Colombia faces several challenges to secure a reliable, affordable, and climate-friendly energy supply. Persistently low reserve-to-production ratios in oil and gas, together with advancing climate change, are putting the country’s energy system at risk. Heavily relying on hydro-power, Colombia’s electricity system will become more vulnerable with extreme weather patterns such as El Niño. This paper offers a multi-method study of the role of photovoltaic (PV), specially prosumage systems, to support a slowly starting energy transition in Colombia. First, qualitative data from an expert elicitation in Colombia’s energy sector is analysed. Second, a model to calculate the internal rate of revenue for households is used to identify optimal sizes for household PV or prosumage systems under the new regulatory framework. Key concerns emerging from the expert elicitation include lacking substantial financial aid, insufficient tax incentives, and high equipment prices, which raise investment and operation costs. Also, model results confirm net-metering implementation as an enabler of widespread deployment of household PV systems. Most profitable system configurations include PV systems without storage technology. Our findings show that financial instruments are still insufficient to scale-up household level PV deployment.

Suggested Citation

  • López, Andrea Ruíz & Krumm, Alexandra & Schattenhofer, Lukas & Burandt, Thorsten & Montoya, Felipe Corral & Oberländer, Nora & Oei, Pao-Yu, 2020. "Solar PV generation in Colombia - A qualitative and quantitative approach to analyze the potential of solar energy market," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 148, pages 1266-1279.
    • Handle: RePEc:zbw:espost:215496
    DOI: 10.1016/j.renene.2019.10.066
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    7. Luis Fernando Grisales-Noreña & Brandon Cortés-Caicedo & Gerardo Alcalá & Oscar Danilo Montoya, 2023. "Applying the Crow Search Algorithm for the Optimal Integration of PV Generation Units in DC Networks," Mathematics, MDPI, vol. 11(2), pages 1-18, January.
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    11. Juan D. Saldarriaga-Loaiza & Sergio D. Saldarriaga-Zuluaga & Jesús M. López-Lezama & Fernando Villada-Duque & Nicolás Muñoz-Galeano, 2022. "Optimal Structuring of Investments in Electricity Generation Projects in Colombia with Non-Conventional Energy Sources," Sustainability, MDPI, vol. 14(22), pages 1-21, November.
    12. Alejandro Betancur-Ramos & John Grimaldo-Guerrero & John William Grimaldo-Guerrero & Juan Rivera-Alvarado & Eilin G mez-Mesino, 2022. "Users, Vehicles Electrics, and Energy Markets in Colombia," International Journal of Energy Economics and Policy, Econjournals, vol. 12(5), pages 11-17, September.
    13. Henao, Felipe & Dyner, Isaac, 2020. "Renewables in the optimal expansion of colombian power considering the Hidroituango crisis," Renewable Energy, Elsevier, vol. 158(C), pages 612-627.
    14. Kerstin Mohr, 2021. "Breaking the Dichotomies: Climate, Coal, and Gender. Paving the Way to a Just Transition. The Example of Colombia," Energies, MDPI, vol. 14(17), pages 1-18, September.
    15. William Niebles-Nunez & Leonardo Niebles-Nunez & Lorena Hoyos Babilonia, 2022. "Energy Financing in Colombia: A Bibliometric Review," International Journal of Energy Economics and Policy, Econjournals, vol. 12(2), pages 459-466, March.
    16. de Doile, Gabriel Nasser Doyle & Rotella Junior, Paulo & Rocha, Luiz Célio Souza & Janda, Karel & Aquila, Giancarlo & Peruchi, Rogério Santana & Balestrassi, Pedro Paulo, 2022. "Feasibility of hybrid wind and photovoltaic distributed generation and battery energy storage systems under techno-economic regulation," Renewable Energy, Elsevier, vol. 195(C), pages 1310-1323.
    17. Oscar Danilo Montoya & Luis Fernando Grisales-Noreña & Alberto-Jesus Perea-Moreno, 2021. "Optimal Investments in PV Sources for Grid-Connected Distribution Networks: An Application of the Discrete–Continuous Genetic Algorithm," Sustainability, MDPI, vol. 13(24), pages 1-19, December.
    18. Oscar Danilo Montoya & Luis Fernando Grisales-Noreña & Diego Armando Giral-Ramírez, 2023. "Multi-Objective Dispatch of PV Plants in Monopolar DC Grids Using a Weighted-Based Iterative Convex Solution Methodology," Energies, MDPI, vol. 16(2), pages 1-20, January.
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