There is a recurring confusion in energy discussions: the belief that energy is synonymous with electricity. Many people overlook the fact that energy as a resource has many end uses, and electricity is only one of them. According to the International Energy Agency, electricity represents just 20% of global final energy consumption.
Imagine an iceberg, where only the tip is visible—electricity—while beneath the surface lie all the other uses of transformed energy sources: transportation, cooking, fertilizer production, manufacturing, petrochemicals, and more. Most of society is unaware that these activities rely heavily on various forms of energy.
This clarification is a good starting point for entering the energy conversation and engaging more deeply with the topic of energy transition. When we talk about the electricity matrix, we refer to the sources used to generate electricity. The energy matrix, on the other hand, refers to primary energy sources that fuel a broad range of societal activities.
Globally, the main focus has been on shifting the electricity matrix toward renewables, replacing coal and oil with solar or wind energy to generate cleaner power. This agenda has been driven by international governance bodies and widely adopted by countries around the world.
While this shift is important—and governments must enable renewable energy development—in Colombia, the energy transition focus shouldn’t be on the electricity matrix, since Colombia already has the sixth cleanest electricity matrix in the world (source: Acolgen).
As for Colombia’s energy matrix, according to Asoenergía, it breaks down as follows:
- 46% oil and derivatives
- 17% electricity
- 16% natural gas
- 7% coal
- 14% biomass and firewood
The transportation sector is the largest energy consumer (44%), followed by industry (28%) and residential use (19%).
Unlike other countries, Colombia’s biggest transition challenge lies in the transportation sector. This doesn’t mean efforts to expand renewable electricity should be ignored, but the country needs a more effective action plan to decarbonize transport, where the greatest emissions originate.
Grounding the energy transition discussion in national realities must be the approach of those responsible for designing public policy. While the global energy challenge revolves around decarbonizing the electricity matrix, Colombia’s already-clean matrix means its approach must be different.
We also must not ignore the fact that if Colombia embarks on a new wave of industrialization, it will bring higher demand for both electricity and energy in general, further complicating the energy transition equation.
The energy conversation is complex and often confusing, which is why decision-makers must take the time to understand core concepts and distinctions—and avoid oversimplifications. Approaching the transition correctly will make the difference, not just for Colombia, but in concrete ways for the world as well.
Carolina Rojas Gómez
Student, Executive Master of Management in Energy
BI Norwegian Business School
