Colombia navigates energy transition and fracking revival

Colombia is navigating a complex energy landscape characterized by a push for renewable transition and a simultaneous push to revive fracking to address declining natural gas reserves. According to the Mining and Energy Planning Unit (UPME), approximately three-quarters of Colombia's electricity generation currently comes from renewable sources like water, sun, and wind. Notably, in 2025, solar energy generation surpassed coal for the first time in four years.

However, the country faces a shortage of natural gas, with proven reserves falling 16.8 percent in 2025 to approximately 5.9 years of output. To address this, President Abelardo de la Espriella has signaled a return to exploration, including fracking, which was previously halted under the former administration. Three companies—Ecopetrol, Drummond, and GeoPark—are positioning themselves for the country's first fracking well.

Despite these developments, significant hurdles remain. No new environmental licenses have been issued, a court-ordered community consultation is pending, and a bill to ban fracking remains in the Senate. Meanwhile, electricity demand continues to rise, with a 6.49 percent increase recorded in July 2026 compared to the previous year.