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

Project
REDD+ Financial Mechanism Colombia
Start Date Q4 2015
Funding Source Core
Approved Budget 0
Status Active
Thematic Area
  • Sustainable Landscapes
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News • July 27, 2018

GGGI advances in the Department of Nariño (Colombia) with workshop Series #2: “Towards Green Growth with Bioeconomy and Circular Economy”

Pasto, July 27 – GGGI with the support of the Norwegian Embassy and the Governor’s Office of the Department of Nariño, carried out the second workshop out of the four series workshops planned on capacity building for the mainstreaming of green growth objectives at the local level. The workshop gathered public and private stakeholders that gained […]

News • April 10, 2018

Norway commits additional US $250 million (2020 to 2025) for Colombia to fight against deforestation

April 10 – Bogota, Colombia – Norway committed additional US $250 million (2020 to 2025) for Colombia today to fight against deforestation by extending the Joint Declaration of Intent (JDI). H.E. Prime Minister Erna Solberg and H.E. President of Colombia Juan Manuel Santos announced the new timeline for their cooperation to fight against deforestation. Norway will […]

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 […]