Understanding Colombia’s Electricity Export Boom

According to official reports from Colombia’s energy operator XM, Colombia earned $335.1 million in electricity exports to Ecuador over the past year.

Most of this energy came from Colombia’s hydroelectric plants, which produce over half of the country’s power. This business depends heavily on rainfall and reservoir levels—factors Colombia cannot fully control.

In early 2024, a severe El Niño drought reduced Colombia’s reservoir levels to just 28% on average. To protect its own electricity supply, the Colombian government halted most exports and relied more on expensive thermal power at home.

Power exports to Ecuador stopped for several weeks. When rains returned and reservoirs refilled in late 2024, Colombia quickly restarted its electricity exports.

In August, exports hit 282.8 gigawatt-hours (GWh), close to the maximum the transmission lines can handle. Prices climbed sharply when power was scarce, reaching 1,304.82 Colombian pesos per kilowatt-hour (KWh) in September, compared to 872.79 pesos in August.

These high prices brought in strong revenues despite less exported electricity. Ecuador depends on Colombian imports, especially when shortages at home force rolling blackouts.

The power trade relies on a cross-border line that carries up to 430 megawatts, hauling electricity south as long as Colombia satisfies its own needs first.

Colombia’s energy business faces risks. Every drought cuts what Colombia can sell abroad. Every rainy season can lower prices. Export volumes and revenues swing with the weather and local demand.

Despite these changes, energy exports help Colombia’s economy and support Ecuador’s grid during tough times. Both governments base their decisions on reliable market and weather data.

Their cross-border trade shows how valuable—and unpredictable—hydropower can be for countries willing to balance local needs and export profits.