Project

Non-Conventional Energies and Energy Efficiency Fund (FENOGE)

At a Glance

Start Date Q1 2017
Funding Source Core
Approved Budget 0
Status Complete

Project Rationale

Colombia is a lower middle-income country with abundant natural resources and a growing population. In 2016, the Colombian government and the FARC rebel group reached a peace agreement that ended many decades of civil conflict, which the government expects will contribute to stronger economic prospects going forward. Still, many socioeconomic and political challenges remain, such as high levels of poverty, unemployment and underemployment, and rural energy access, among others.

Over the past several years, the Colombia government has passed a series of laws aimed at reducing GHG emissions, driving economic development, and providing increased energy access to rural areas. Law 1715/2014, known as the Renewable Energy Law, provides various incentives to encourage non-conventional renewable energy and energy efficiency investment. The Law focuses on RE integration into the electricity market and in non-interconnected zones (ZNI in Spanish). The Law establishes FENOGE as a financing vehicle to achieve these goals.
As established in Law 1753/2015, FENOGE will have an initial capitalization through a fractional tax per kWh on the wholesale energy market, called the Fondo de Apoyo Financiero para la Energización de las Zonas No Interconectadas (FAZNI) (English translation: Financial Support Fund for the Energization of Non-Interconnected Zones).

Building on 2015-2016 work

GGGI’s Country Planning Framework for Colombia identifies mainstreaming of green growth into national development policies and mobilizing sectoral green growth investments. In partnership with the National Planning Department (NPD), GGGI began the process of mainstreaming green growth into Colombia’s National Development Plan by supporting the inclusion of sector-specific green growth targets in the current National Development Plan 2014–2018, as well as following up on policies and investments to meet them. In 2016, GGGI supported NPD in the diagnosis and green growth potential assessment phase of a Green Growth Task Force, which brought together experts to assess priority issues and provide recommendations to be adopted in the Long-Term Green Growth policy during its formulation in 2017–2018.

Planned Results

The establishment of an National Financing Vehicle in Colombia for renewable energy and energy efficiency will lead to a significant reduction in GHG emissions, greater energy access in rural areas, and better quality of life for Colombia’s citizens. GGGI supported this by contributing to the following outputs:

  • Finalize the decree that creates FENOGE as a legal entity;
  • Finalize the FENOGE Operations Manual;
  • Support the selection of the fiduciary agency that will administer FENOGE; and
  • Prepare the FENOGE Business Plan.

Related

News • November 29, 2017

Catalyzing private investment in Waste to Energy Projects in Colombia

On November 28-29, GGGI organized a series of workshops in Bogota on November 28th and 29th, as part of the Ministry of Mines and Energy (MME) and the Energy Planning Unit (UPME) efforts towards the development and commercialization of waste to energy projects in the country. The event gathered government representatives, financial institutions, project developers […]

Project
Policy and investment development to advance Colombia´s Long-Term Green Growth Objectives
Start Date Q1 2017
Funding Source Core
Approved Budget USD 1 456 000
Status Active
Thematic Area
  • Sustainable Landscapes
  • Cross Cutting
View
News • January 26, 2018

Colombia kick-starts its sub-national program as part of the partnership with the Norwegian government

On January 26, the GGGI Colombia team kick-started its sub-national program as part of the partnership with the Norwegian government, by organizing a technical discussion with local government stakeholders – the first destination is Narino  (Nariño), located South-West in Colombia, a strategic location for green growth implementation due to its geographical diversity mixed with Andean […]

News • June 14, 2018

Colombia Presents a 2030 Green Growth Roadmap

Bogotá, June 14 – The President of the Republic of Colombia, Juan Manuel Santos, attended a high-level forum, showcasing the results and recommendations of the national Green Growth Taskforce. More than 400 high-level representatives of the government, the private sector, academia and civil society, participated in the forum that included the Taskforce’s presentation of the […]