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Government sets new rules for energy contracting

Government sets new rules for energy contracting

The national government, through the Ministry of Mines and Energy, issued Decree 1091 of 2025, with which it seeks to consolidate a regulatory framework that strengthens long-term energy contracting in Colombia.

The measure, which adds the Single Regulatory Decree 1073 of 2015, establishes new guidelines for electricity generation, storage, transmission and distribution projects, with the purpose of ensuring system stability and promoting a fair energy transition.

According to the Ministry, the standard will allow diversifying the national energy matrix, promoting the entry of more renewable and clean sources, including solar, wind, geothermal and hydroelectric, in order to reduce dependence on fossil fuels and improve the environmental sustainability of the sector.

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The decree introduces competitive contracting mechanisms that seek to guarantee stable prices for users, attract private investments and ensure a continuous supply of energy. According to the portfolio, these provisions will also contribute to mitigating risks of shortages. and to plan future energy supply with greater foresight.

The Minister of Mines and Energy, Edwin Palma, explained that the new regulatory framework “It is a fundamental step towards a long-term energy policy that prioritizes the stability, sustainability and security of the electrical service.”

The official highlighted that the Government’s objective is for the country to have a “modern, resilient and reliable” system. in which energy reaches more regions “at fair prices and with a greater participation of clean sources.”

Edwin Palma, Minister of Mines and Energy

Sergio Acero Yate / Portfolio

Among the immediate measures derived from the decree, the Ministry announced that in the coming weeks it will call new energy auctions to encourage the entry of renewable projects in different areas of the country. These auctions, according to the MinEnergía, will be a key instrument to attract investors, promote regional development and ensure energy supply in the medium and long term.

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The standard also emphasizes the development of storage projects—particularly through batteries and associated technologies—, in order to increase the flexibility and security of the national electrical system.

In addition, it promotes the expansion of transmission and distribution networks, so that new generation sources can be efficiently and equitably integrated into the National Interconnected System.

For the Government, the decree seeks to reduce the impacts of climate change and climate variability,

For the Government, the decree seeks to reduce the impacts of climate change and climate variability,

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Within the framework of the fair energy transition policy, the Ministry highlighted that The decree seeks to reduce the impacts of climate change and climate variability, taking advantage of the country’s natural resources more efficiently.

Also aims to facilitate the participation of local communities and companies in contracting processes, under principles of transparency and competition.

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“This Government is committed to a fair, sustainable and equitable energy model. With this decree we give a clear signal to investors, communities and users: in Colombia there will be clean, sufficient and accessible energy for everyone,” Minister Palma stated when presenting the measure.

The official document states that The new scheme will make it possible to strengthen the planning of energy supply and demand with longer time horizons, lor that translates into greater predictability for market agents and for public policy in the sector.

The decree complements other actions of the Ministry aimed at guaranteeing the country's energy security, says the Government.

The decree complements other actions of the Ministry aimed at guaranteeing the country’s energy security, says the Government.

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The decree complements other actions of the Ministry aimed at guaranteeing the country’s energy security, among them the promotion of regional interconnection infrastructure, the promotion of storage technologies and the promotion of investments in non-conventional renewable generation.

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With this provision, the Ministry of Mines and Energy reaffirms its purpose of ensuring a reliable, sustainable and affordable supply, while promoting territorial and economic development through the transition towards a cleaner and diversified energy model.

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