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A new player in the Colombian energy market

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Hemberth Suarez's picture
Founding Managing Partner OGE Legal Services

Hemberth is an attorney and partner at OGE Legal Services. He is a Master's Degree in Renewable Energies. He is a specialist in electricity and gas regulation, energy mining law, domestic...

  • Member since 2020
  • 10 items added with 10,587 views
  • Jul 28, 2020
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The law in Colombia will create a new agent, which will change the traditional structure of the market. This is proposed by the Electricity and Gas Regulation Commission through its Resolution 131 of 2020, which is a draft and will be open for comments until August 17. The figure of the GIDI is an agent that will create regulation in Colombia.

This agent will provide a virtual platform to consult and analyze electricity market information in real time, in this way it will be possible to know rates of energy on an hourly basis, easily change the energy marketer and strengthens the sale of surplus energy by self-generators to a marketer of their free choice, all in free trade as it currently occurs in different parts of the world.

To achieve the goals previously mentioned, the installation of advanced measurement equipment will be implemented to reach 75% coverage in Colombia in 2030 and a virtual platform must be developed, the agent in charge of which will be GIDI, these two aspects will be the central axis to synchronize cyber security, virtuality and data law with the energy market in Colombia; this platform will publish, among other aspects, the rates for the supply of electric energy and the services offered by the different marketers that serve the user market that consult the GIDI platform.

The we have that the technology to implement must allow the bidirectionality of the information between the user and the company that provides the energy service, authorities and third parties. Which, at the same time, becomes the first great responsibility that GIDI will have, referring the proper handling of the information of the energy users. This also reveals a great change, the measurement information will leave the company-user relationship because it will become decentralized and stay on a virtual platform that must guarantee free access.

Now let's see who GIDI will be, it will be a new agent in the chain of public energy service provision, an independent data and information manager for the energy sector that will be selected by the Energy and Gas Regulation Commission, CREG. GIDI must be constituted as a public services company, its behavior will be subject to the control, inspection and surveillance of the Superintendence of Home Public Services and the Superintendence of Industry and Commerce due that it will manage personal data and information of users of the electric energy service.

Something important that the new dynamics in the energy sector will have is that the data is not obtained in the first instance by GIDI, who obtains it is the distribution company and it must deliver to GIDI the data obtained from reading the advanced meters. Since this moment, GIDI will be responsible for uploading the information on a web platform that must have the possibility of being consulted through mobile devices, with all the functions available.

Finally, within the characteristics that GIDI will have, according to the draft that was published to comment, is that of being completely independent, which means that GIDI will not be able to have any relationship or link with any of the existing agents or those in charge of the national center of dispatch, the system of commercial exchanges or settlement of accounts. With which it is understood that GIDI cannot be XM the current administrator of the energy market in Colombia and any of its dependencies.

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Jim Stack's picture
Jim Stack on Jul 28, 2020

Does this mean that people in Columbia could add Solar PV, Wind and small hydro and get a fair Net-Metering rate ? What will this change allow?

Hemberth Suarez's picture
Hemberth Suarez on Jul 28, 2020

That's right, today in Colombia you can sell the energy produced by those sources, even with self-generation you can sell surpluses, with the change you expect the formation of a fair tariff. This change will allow several marketers to offer for the surpluses. In my opinion that will be one of the changes.  

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