On November 22, 2024, the National Government issued Decree 1403 of 2024, setting out new energy policy guidelines for self-generation and marginal production of electricity. This initiative is part of Colombia’s broader strategy to expand distributed generation, encourage new market participation, and accelerate the country’s energy transition.
Key Provisions of the Decree
- No prior authorization for connection: Self-generators and marginal producers who do not inject excess energy into the grid may connect to the National Interconnected System (SIN) or to networks in Non-Interconnected Zones (ZNI) without prior authorization, regardless of scale or installed capacity.
- Symmetry in participation and system use: The Energy and Gas Regulatory Commission (CREG) must ensure equal treatment for generators, self-generators, and marginal producers, both as market participants and as system users. This includes connection, costs, rights, responsibilities, access to the wholesale market, participation in central dispatch, and the reliability charge scheme.
- Remote generation: The Decree allows energy for self-consumption or for clients with economic ties to be generated in locations other than the point of use. The Ministry of Mines and Energy will define the rules, and CREG will determine whether charges such as CERE or FAZNI apply to these operations.
- Backup contracts: Large-scale self-generators and marginal producers must sign a backup contract with the network operator or transmission company, based on standard templates published by those entities. For small-scale projects, signing will be optional and subject to CREG regulations.
- Definition of criteria: Under the Decree, self-generators and marginal producers:
- May use general-use networks.
- Face no limits on the proportion of excess generation relative to their own consumption.
- Must comply with applicable regulations when delivering excess energy or consuming additional energy.
- Must be represented by a retailer or generator if operating at large scale.
- Are not required to own the generation assets.
- Promotion and enabling measures: CREG will consider allowing these actors to participate in mechanisms such as the reliability charge and ancillary service remuneration. The Ministry of Mines and Energy will issue enabling requirements and obligations for project development under these schemes.
With this Decree, the Government aims to boost competitiveness and efficiency in the electricity sector, opening the way for more decentralized, resilient energy solutions in line with Colombia’s energy transition goals.