Irene Vélez: Certainty, dialogue and experience, what they expect from her replacement – Sectors – Economy

By Monday it is expected that the Minister of Mines and Energy, Irene Vélez, step down after multiple controversies raged during his 11-month tenure. Everything resulted from the fact that President Gustavo Petro officially accepted his resignation.

A few days ago, the Attorney General’s Office and the Prosecutor’s Office opened investigations for an alleged excess of functions in an immigration process for his minor son, a case that EL TIEMPO revealed. In addition, she received accusations for the contracts that her husband Sjoerd van Grootheest has with the Colombia in Peace Fund.

(Also read: Irene Vélez: the controversies that marked her time at the Ministry of Mines and Energy)

With the departure of Vélez, the mining-energy sector is left to the expectation of who will be his replacement. And while a name is defined, from different sectors they express what they expect from this new official and the priorities you should have on your agenda.

For the director of Óptimas Consultores, Alejandro Lucio, although the sector is used to recurring changes of ministers In this portfolio, the difference with what is currently happening is that in previous cases there was “an institution that works.”

Today there is no Minister of Mines and Energy, for six months there has not been a Vice Minister of Energy on propertyThe president of the National Hydrocarbons Agency (ANH) has not been appointed either, and four commissioners of the Creg have yet to be appointed, since the current ones have been in charge since April.

“What the sector is perceiving beyond the departure of the minister is that the institutional framework is in charge. That is very delicate when It is on the verge of a child, we do not know if it will be strong, and with a lot of reforms that are waiting to materialize in the market, associated with the energy transition,” says Lucio.

It also points out that the new minister or minister to be appointed must solve several problems that the electricity sector is facing, such as the lag in infrastructure and the delays registered by generation projects. “Regardless of personalizing the discussion, we are with an institutionality adrift in a very delicate moment“he adds.

For her part, María Claudia Lacouture, president of the Colombian American Chamber of Commerce (AmCham Colombia), states that the change in the Ministry of Mines and Energy should represent an opportunity to return the certification to one of the most important sectors for the economy of the country, not only because of the amount of resources it generates, but also because of social investment and the generation of equity in the country.

Colombia is undergoing an energy transition process that must continue in a fair and safe manner, which maintains the flow of investments and that guarantees energy sovereignty in the medium and long term,” he says.

From the mining sector, there are five issues that Carlos Cante, executive president of the National Federation of Coal Producers (Fenalcarbón), expects from the minister appointed by Petro.

The first thing is to have a constructive dialogue without prevention or stigmatization with the mining business sector, in addition to a clear and concerted vision with the entire country regarding the just energy transition in mining territories.

This adds to the clarification in the administration of mining resources regarding the operation of the procedures of the current mining titles.

(Also read: Government backs down with possible appointment of Vice Minister of Energy)

And if the National Government definitively establishes the new mining law in the Congress of the Republic, Cante points out that “it must be a true consensus between the interests of the mining business community, the communities, and environmental issues.” In this reform also compliance with acquired rights must be guaranteed and the legal stability of contracts.

In renewable energy, the great challenge will be to materialize the commissioning of wind and solar projects, according to Alexandra Hernández, executive president of Ser Colombia, since these initiatives are several years behind schedule due to procedures and other circumstances.

“Through these energies, the Government’s commitment is to achieve decarbonization, democratization, decentralization and competitive rates in the energy sector“, manifest.

For this -says the union leader- it is necessary to achieve an articulation between the national and regional authorities, the communities and the companies, so that procedures that have been pending for years can be unlocked and the projects come into operation.

(Also read: Attention: fumigation day is suspended at the Ministry of Mines and Energy)

Another challenge is to promote long-term contracting mechanisms, such as auctions, so that these projects can have their financial closure in the future; achieve legal stability and review the fiscal framework because it was changed with the tax reform and the National Development Plan (PND) and is hindering the financial viability of wind and solar farms.

Santiago Soto, an expert lawyer in mining and energy issues, assures that “the minimum” that is expected of the new Minister of Mines and Energy is that he be competent for the position and the portfolio he occupies, since You cannot “commit again the imprudence of appointing a person who has no idea of ​​the sector”.

Regarding the priority issues that must be addressed, mention the reactivation of hydrocarbon exploration, the generation and distribution of energy and finding the path of the energy transition. “That implies leaving dogmatism aside and landing on the economic, legal and social reality of the country,” adds Soto.

For now, as the possible replacement for Irene Vélez sounds the former mayor of bucaramanga, fernando vargas, who is also a businessman in the energy mining sector. He is part of the Energys Group, a company that markets minerals, among others Coal.

People close to the Santanderean politician assured that it was Carlos Ramón González himself, director of the Administrative Department of the Presidency (Dapre), who would have offered him the position.