CREG has added some actions to its plan to mitigate the impact that the drought is having on reservoirs used for energy generation in the coffee-growing country.
The prolonged drought in Colombia continues to be a threat to energy reservoirs. Although usable levels of these are still far from 17% (which is the threshold that would be reached before an emergency is declared), they continue to decrease with each passing week. The most recent report provided by XM shows that the levels are at 50.51%.
Faced with this situation, the Energy and Gas Regulatory Commission (CREG) announced that it will add new strategies to its package of measures to mitigate the accelerated decline in reservoir levels.
It should be noted that a few weeks ago, the implementation of a plan was announced which included the suspension of energy exports to Ecuador, as well as an increase in the production of thermal power plants to avoid water stress in hydroelectric plants.
The first of the new measures is to establish rules so that users can offer demand disconnections in the energy market. That is, users, through their marketer, will be able to offer the amount of energy they want to be reduced each day of the following week.
"This procedure will be repeated until November 2, 2024, with the possibility of extending it for one more month, while the Regulatory Commission concludes the analysis of the mechanism proposed in Resolution Project 701 054 of 2024, which is intended to be permanent," the CREG explained.
The second of these measures reinforces the initiative to increase production from thermal power plants, as well as to take advantage of the capacity of generating plants that are not yet registered in the market, through the implementation of rapid procedures, with the application of CREG Resolution 101 053 of 2024.
“This will allow the use of additional energy sources other than hydroelectric plants with reservoirs, making it easier for the latter to conserve more water. In addition, the technical requirements for plants that are close to operating will be simplified, so that they can safely provide their available energy without affecting the stability of the electrical system,” he said.
Another aspect of the strategy will be to ensure that large users connected to the National Transmission System optimize their consumption, in order to reduce pressure, thus helping to conserve water resources in reservoirs.
Through CREG Resolution 101 052 of 2024, instructions will also be given to measure the levels of the reservoirs and their operating status. This will allow identifying which reservoirs should be prioritized to conserve water, or which are close to their minimum level to be able to operate.
“Finally, the Regulatory Commission is preparing rules to mitigate the potential impacts of the atypical hydrological conditions of this winter season on energy prices passed on to users. These measures seek to reduce the amount of energy that must be traded on the stock exchange in times of high price volatility,” reads the statement shared by the commission.
This will allow marketers to negotiate contracts for up to one year with a set maximum price, thereby protecting users from fluctuations.
“With these measures, we hope to raise the level of the reservoirs above the reference level to ensure a reliable supply of energy during the next summer. We will continue to implement all the necessary actions to ensure this objective,” concluded the director of CREG, Antonio Jiménez.
