There’s a popular saying that serves as a warning about the danger of forgetting ourselves—of taking for granted what we have, only to realize its value once it’s gone. That’s the origin of the phrase: “You don’t know what you have until it’s gone.” Human beings are particularly prone to valuing things only in hindsight.
In these post-pandemic years, we’ve experienced real losses, and the world is no longer the same as it was in January 2020. Just to name a few examples: think of interest rates, inflation, the global order, airfare costs, our sense of well-being, the energy status quo, and public trust in institutions.
Loss disrupts balance. And while not all outcomes are necessarily negative, in the context of the current energy transition, political stability and strong institutions are essential to making progress—because they allow the creation and implementation of a stable energy policy that produces real, positive impacts.
For countries around the world, energy systems are shaped not only by their energy or electricity matrix, but also by the policies and institutions that govern them, and by how effectively governments orchestrate them to ensure, among other things, access to energy.
In fact, in any national energy system, it’s public policy and the institutions that implement it that determine whether the system functions optimally and guarantees access. A poorly designed or poorly executed energy policy could, for example, lead to an increase in energy poverty.
And let’s not forget that energy poverty has multiple impacts: it affects health and gender equity, delays rural development, and harms the environment. Therefore, a harmonious energy system is key to avoiding access problems and rising energy poverty rates.
In this regard, the institutional framework of the energy system is fundamental. As Douglas North explains, institutions are the “rules of the game” that govern human interaction—and they are critical to a country’s economic growth and the development of its society.
In Colombia’s case, the country has spent over three decades building strong institutions in its energy sector—both in electricity and hydrocarbons. This has enabled a reliable supply of electricity and ensured the availability of liquid fuels and gas for domestic consumption.
The days of Colombia’s infamous 1992 blackout seem long gone, as does the idea of watching the news and seeing endless lines of people (as in other countries) trying to get fuel for their cars. Nobody here seriously considers the possibility of losing access to energy.
But a breakdown in institutional energy governance could bring those distant realities much closer to home. The call is to remain aware—and to value the institutions we have. To build upon what works, while fixing what doesn’t. And above all, to recognize the efforts of the many public servants who have helped build Colombia’s energy institutions and kept them running.
Carolina Rojas Gómez
Student, Executive Master of Management in Energy
BI Norwegian Business School
