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Colombia, a top exporter of coffee and flowers worldwide, has been actively pursuing its economic transformation, especially within the energy sector. This shift offers new prospects for Chinese photovoltaic and electric vehicle companies looking to expand into Latin America.
The country’s energy transition is driven by a clear long-term policy direction and legal framework, not just immediate market trends, according to Bao Mingqian, Head of International Business Process Management at Jinko Power Technology, who has extensive experience working in Colombia. Bao shared these insights during the Opportunities From Colombia’s Sustainable Development multilateral matchmaking event, part of the inaugural Overseas Investment Fair held in Shanghai from March 25 to 28.
Over the past decade, Colombia’s economy has experienced steady growth, positioning it as the fourth-largest economy in Latin America, after Brazil, Mexico, and Argentina.
Colombia’s well-defined strategic focus on optimizing its energy mix, fostering green development, and supporting renewable energy projects provides the foundational conditions for sustainable investment, Bao emphasized.
Solar Power
Historically, Colombia has relied heavily on hydropower, producing about 70 percent of its electricity. However, dry seasons can cause energy shortages, highlighting a need for diversified energy sources.
With ample sunlight, solar power presents a viable supplementary option. The government has introduced various policies and regulations to encourage renewable energy development. Notably, a 148-megawatt photovoltaic project by Power Construction Corporation of China, known as PowerChina, in Escobales was fully grid-connected earlier this month, marking it as the largest Chinese-built PV station in South America.
For companies entering foreign markets for the first time, Colombia presents more than just a single project opportunity. It also offers a platform to establish their initial local management structures in Latin America, Bao explained.
Electric Vehicles
In January, President Gustavo Petro announced plans to gradually replace approximately 54,000 taxis with electric vehicles to advance Colombia’s green transportation efforts.
Government incentives and growing environmental awareness among consumers have fueled rapid growth in EV demand. Chinese brands like BYD and Great Wall Motor have increased their sales and expanded their presence significantly in the market. In February, BYD’s sales in Colombia jumped 137 percent year-over-year to 1,142 units, making it the seventh-largest brand. Tesla, with 296 units sold, did not make it into the top 10.
Chinese EV brands also dominate Colombia’s pure electric bus market, with thousands operating in cities such as Bogotá, Medellín, and Cali.
Additional Opportunities
Chinese companies have achieved notable success in infrastructure projects within Colombia. For instance, Bogotá’s Metro Line 1 represents the largest public-private partnership investment by Chinese firms in Latin America.
This elevated metro line—the city’s first—utilizes Chinese technology and rolling stock. When completed in 2028, it is expected to significantly alleviate traffic congestion and realize Colombia’s long-standing “metro dream” of over 80 years.
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