Financial Evaluation of a Business Model for the Development of Advanced Measurement Electricity Infrastructure Projects in Colombia

The Colombian government’s plan aims to strengthen the electricity sector through the implementation of Advanced Measurement Infrastructure, network automation, distributed resources, and electric vehicles. These initiatives present both technological and economic challenges, given the current conditions in various Colombian municipalities, many of which will struggle to meet them. In response to this need, it is proposed to evaluate a business model to encourage the development of projects that facilitate the modernization of the distribution network, by supporting the network operator as a strategic partner. The distribution network of the municipality of San José de Guaviare in Colombia is used as a case study. The results indicate that this approach is attractive for the public service provider and demonstrate that continuous improvement in service quality indicators can be achieved without significantly impacting the local population’s economy.