Following the guidelines set forth in Law 1715 of 2014, which promotes the use of renewable energy sources and efficient energy use, the Energy and Gas Regulation Commission (CREG) has just issued Resolution No. 101 043 of 2024. This regulatory framework promotes the active participation of consumers in the wholesale electricity market in Colombia, thus optimizing energy use.
This is a transitional program, called the Demand Response Mechanism (DR Mechanism), designed especially for large consumers and groups of consumers who can significantly manage their energy consumption in a more efficient and sustainable manner. Below are the main aspects of this DR Mechanism:
Participants:
The DR Mechanism is primarily aimed at large energy consumers – unregulated consumers – who have advanced metering systems. It is essential that participants have telemetering systems that allow for precise and real-time measurement of energy consumption for correct verification and compensation. These consumers participate in the DR Mechanism through a representative, who can be a marketing agent or a specialized manager designated by the consumer.
Stages:
The DR Mechanism unfolds in two stages. In the First Stage (May 8 – June 30, 2024), consumers propose weekly consumption reductions and receive economic incentives for the verified reductions. In a Second Stage (June 30 – October 31, 2024), reduction proposals can be made daily, allowing for more precise adaptation to energy needs.
Benefits of the DR Mechanism:
The DR Mechanism not only provides economic compensations for participants who manage to reduce their consumption, but it also improves the energy efficiency of the system as a whole. By better managing demand, the overall use of energy is optimized, resulting in a reduction of energy costs for all consumers. Moreover, this mechanism provides large companies and consumers with the necessary experience to adapt to future permanent demand management initiatives, paving the way for a more sustainable and participatory energy market.
Verification:
The reduction in consumption is verified through established procedures, ensuring that compensations are fair and based on the amount of energy effectively saved.
This transitional program is an important step toward creating a more efficient and participatory energy market in Colombia, where consumers play an active role in demand management and in the stability of the electrical system.