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

Análisis comparativo de modelos de concesiones de transporte público – Reporte completo (Español) Colombia  • Brazil  • Green Cities  • Sweden  • Mexico
Report
Análisis comparativo de modelos de concesiones de transporte público – Reporte completo (Español)

Colombia  • Brazil  • Green Cities  • Sweden  • Mexico  • United Kingdom

News • May 6, 2019

GGGI Colombia participated in the signing of the beef and dairy Zero Deforestation Agreements

May 6, 2019, Bogotá, Colombia – GGGI sealed its commitment to the sustainability of livestock and forest conservation with its adhesion to the Zero Deforestation agreements for beef and dairy value chains, together with the Ministries of Environment and Agriculture, the Sustainable Livestock Board of Colombia with its 45 members, private companies, restaurants and environmental organizations. […]

News • October 29, 2019

Department of Meta: Green Growth Potential Assessment (GGPA) results

Villavicencio, October 4 –The Global Green Growth Institute (GGGI) is pleased to announce the publication of the results from the Green Growth Potential Assessment (GGPA) for the Department of Meta on Friday the 4th of October. The GGPA methodology, a GGGI analytical tool that evaluates country performance in key green growth areas, was specifically adapted […]

News • August 29, 2019

Project launch: Boosting Bioeconomy and Renewable Energies under a Green Growth Framework

Bogotá, August 23, 2019. The national department of planning (DNP for its acronym in Spanish), Global Green Growth Institute (GGGI), and the British Embassy in Colombia have officially launched the project “Support for the Implementation of the Green Growth Policy of Colombia (CONPES Document 3934 OF 2018) through capacity building and public and private investments”. […]