Voluntary Demand Response in Colombia: Operational Insights and Market Impact

Colombia, examining some impacts and operational insights for end users, market agents, and the Market Operator and Administrator. Additionally, it outlines the actions taken by the national government and the authorities to encourage active user participation, either through energy generation or voluntary disconnection from the grid, introducing flexibility into system operations, simplifying operations and reducing costs.

Demand Response requires users to take an active role, offering flexibility and new opportunities for system operators to respond to daily operational challenges. Various approaches to demand response have been implemented globally, including price-based voluntary participation, demand management programs, load shedding (Lastabwurf), and temporary disconnection. These programs are used in daily operations to maintain system reliability and, in some cases, allow consumers to also participate in capacity markets and complementary services.

Considering the dynamics of the Colombian energy sector, the integration of active user participation is transforming how reliability and supply security are managed. As more users participate in the energy market, greater flexibility and dynamism contribute to improved system performance. Consequently, the Colombian government and the Energy and Gas

Regulation Commission have developed actions to promote the voluntary demand response, defining mechanisms for market agents and generators while clarifying the role of the end users, both residential and industrial. According to that, this article details the actions implemented in

Colombia, the changes in regulations that have allowed greater participation of this mechanism, the evolution of its implementation and the actions taken to strengthen its role.

Finally, the study evaluates the impact of incorporating DDV into transactions within the

Wholesale Energy Market and provides insights and perspectives by analysing real-world data.

The analysis compares energy consumption during disconnection periods with standard demand patterns, explores alternative market mechanisms to estimate user behaviour, and identifying significant trends. These findings support more active stakeholder engagement, accelerate the energy transition, and encourage the development of emerging energy markets.