Although the year started with a promising outlook, as EV sales increased by 345% annually, this growth presents a new challenge: accelerating the deployment of charging infrastructure across the country.
Currently, Colombia has a ratio of one charger for every 33 electric vehicles, highlighting the need to strengthen the charging station network.
However, installing this infrastructure requires significant investment and a financing model that ensures long-term viability and sustainability.
The Ministry of Mines and Energy, in collaboration with the World Bank and Deloitte, has identified various investment schemes to drive the deployment of charging infrastructure as part of a national strategy.
This strategy is based on three key approaches:
• Public investment
• Private sector participation
• Public-private partnership (PPP) models
Each model offers advantages and challenges, and their application will depend on regional characteristics and the projected demand for EVs.
Public Investment: State-Driven Charging Infrastructure
The public investment model proposes that the government takes on the initial investment in charging infrastructure, particularly in regions where private participation is not attractive.
This approach is crucial in the early stages of market development, when EV penetration remains low and there is not yet a large enough user base to ensure business profitability.
Through state funds and subsidies, the government can install chargers in strategic areas, ensuring nationwide coverage and facilitating access to electromobility in regions with lower population density.
However, this model presents significant challenges, such as dependency on public budgets and bureaucratic hurdles in implementation processes.
Private Investment: The Market as a Growth Driver
The private investment model is based on the development of charging stations by energy and mobility sector companies.
Under this approach, operators take on both the investment and management of infrastructure, recovering costs through:
• Usage fees
• Memberships
• Additional services
This model ensures greater operational efficiency and technological upgrades, allowing for a more agile and flexible expansion of the charging network.
However, market-driven logic often concentrates investment in high-demand areas, such as major cities and strategic corridors, leaving out less profitable regions.
Additionally, charging tariffs under a private model may be higher compared to a regulated model, potentially creating access barriers for some users.
Hybrid Model: Public-Private Partnership for Balanced Development
A middle-ground approach is the public-private partnership (PPP) model, which combines government investment with private sector participation.
In this model:
• The government funds the installation of basic infrastructure
• Private operators manage and maintain charging stations
Additionally, concession contracts can be established, allowing companies to invest in charger development in exchange for operating rights over a fixed period.
This model ensures wider coverage without fully relying on state resources, while also attracting private investment through tax incentives and regulated tariff structures.
However, its success depends on clear regulatory frameworks to prevent market concentration among a few dominant players and to guarantee fair competition.
Regional Adaptation of Investment Models
The choice of investment model will depend on territorial characteristics and projected demand.
• In major cities, where electromobility is already advanced, charging infrastructure can be primarily financed by the private sector, supported by tax incentives to encourage investment.
• In mid-sized cities, a mix of public and private investment will be essential to ensure network expansion without making tariffs a barrier for users.
• In low-density areas, where profitability is lower, the government will need to play a central role in funding infrastructure.
• On national highways and major mobility hubs, PPP or concession schemes appear to be the most viable solution to guarantee charging access along strategic corridors.
The Future of Charging Infrastructure in Colombia
During the initial phase of transition, government involvement will be crucial to reduce uncertainty and ensure chargers are available even in low-demand areas.
As the market matures and EV penetration surpasses the 3% threshold, the private sector will take the lead in infrastructure expansion, consolidating a self-sustaining ecosystem.
The challenge is not just to install more chargers but to do so strategically, ensuring that the charging network is well-distributed across the country.
