Securing Energy Supply in Interconnected Regional Markets: Lessons from the Andean and European Systems facing scarcity

Colombia and the European Union addressed electricity supply challenges during periods of scarcity in their dominant generation sources—hydropower in Colombia and natural gas in

Europe—between 2022 and 2024.

In Colombia, the 2023–2024 El Niño (ENSO) phenomenon reduced hydrological inflows, which accelerated reservoir depletion. The Ministry of Mines and Energy implemented temporary regulatory measures restricting exports to thermal generation. These actions, framed within existing market rules and bilateral agreements, aimed to preserve water reserves for national demand.

Conversely, Europe faced a severe crisis following the disruption of Russian gas supplies in 2022. The European Commission launched REPowerEU, a strategy to reduce dependence on

Russian fossil fuels through diversification of imports, accelerated renewable deployment, and demand reduction targets. Short-term resilience was supported by Europe’s integrated electricity market, where marginal price signals enabled efficient cross-border flows without political intervention.

The study examines international electricity transactions in both regions during scarcity periods, using public data from system operators for the 2022–2024 period. It also presents a simulation assessing whether the Andean Regional Short-Term Electricity Market

(MAERCP)—approved in 2024 but not yet operational—could have improved efficiency under the ENSO assuming full integration of Colombia, Ecuador, and Peru, including the planned 500 kV Ecuador–Peru interconnection.