Colombia promotes geothermal energy with the new Decree 1598 of 2024

The Presidency of Colombia, through the Ministry of Mines and Energy of Colombia (MinEnergía), has issued a new regulatory framework seeks to promote the generation of electrical energy from geothermal resources and optimize the processes of awarding rights for their exploration and exploitation.

Decree 1598 of 2024, which modifies Decree 1073 of 2015, seeks to introduce a competitive process for the allocation of geothermal permits, as well as guidelines to strengthen the interaction of project developers with local communities, among other changes. The new regulation was announced by Energy Minister Andrés Camacho.

Minister Camacho highlighted the key role of this initiative in Colombia’s energy diversification: “With Decree 1598 of December 27, 2024, Colombia consolidates its path towards the exploration and use of geothermal energy, an industry that is growing worldwide.”

Download Decree 1598 of 2024 Geothermal Colombia

Main changes introduced by Decree 1598:

1. Enhanced exploration procedures: Developers will be required to conduct detailed investigations to confirm the presence of geothermal resources in designated areas. This phase involves thorough scientific assessments to determine the potential for energy production.

2. Economic viability assessment: Once geothermal resources have been identified, their economic viability must be established before proceeding with large-scale generation projects. This will ensure that only profitable projects move forward, balancing economic and environmental considerations.

3. Advanced drilling techniques: The decree highlights the importance of drilling as a fundamental method for accessing geothermal resources beneath the Earth’s surface. This process involves digging deep wells to extract heat, which can be used for electricity generation, direct applications or cascading uses. Drilling is crucial in both the exploration and exploitation stages.

4. Environmental protection: MinEnergía stressed the importance of protecting the environment throughout the development of geothermal projects. The competent authorities will supervise the delimitation of areas and ensure compliance with environmental standards, reducing possible ecological impacts.

Featured modifications

Additionally, the following modifications are highlighted in the new decree:

•  Change in the allocation of permits: Exclusivity and priority in favor of the first applicants are eliminated, replacing the principle of “first in time, first in right” with a competitive process. Interested developers will participate in an objective selection process in accordance with the guidelines established by the Ministry of Mines and Energy, which will allow for a flexible allocation adapted to market dynamics, the technical needs of each area and the benefit of the country.
• Round-based allocation mechanism: By delegating functions to the National Hydrocarbons Agency, the new regulation seeks to implement an allocation mechanism through competitive rounds. This approach responds to the complexity inherent in the development of large-scale geothermal projects.
• Social guidelines for community relations: The Ministry of Mines and Energy is granted the power to establish guidelines to strengthen interaction with communities in the areas of influence of geothermal exploration and exploitation projects.
• Access to the network and market development: Provisions are included that guarantee the connection infrastructure and the allocation of transport capacity in the National Interconnected System (SIN), allowing the delivery of energy generated by geothermal projects, an aspect not contemplated in the previous regulation.
• Cascading use of geothermal resources: The possibility of using geothermal heat for applications other than electricity generation is established, promoting comprehensive use of thermal energy.

Perspectives and challenges

While the new regulation provides a solid framework for geothermal energy projects, some challenges remain, including high initial costs, technological requirements and the need for specialized labor. However, its successful implementation could position Colombia as a leader in geothermal energy in Latin America, contributing to the country’s energy security and economic growth.

Colombia currently only has one small-scale 100-kW geothermal power plant at the Las Maracas field in Casanare. In recent year, there has been a push to establish a more robust policy framework for geothermal in Colombia as the country aspires for further development in the Casanare and Caldas regions.

Sources: La Republica newspaper / X Minister of Mines and Energy Andrés Camacho /   Linkedin Leonardo Tamayo – Coordinator of the Ministry of Mines and Energy of Colombia  via our Spanish language platform PiensaGeotermia