No Winners In Colombia RE Auction

Colombian Ministry Of Mines & Energy Cancels First Renewable Energy Auction Citing Nation’s Antitrust Rules; New Auction To Be Held Within H1/2019: Reuters
06:18 AM (Beijing Time) - 28. February 2019
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Colombia has cancelled its scheduled renewable energy auction which would have been the country’s first. (Photo Credit: Ministry of Mines and Energy, Colombia)

Key Takeaways

  • Colombia has cancelled its scheduled renewable energy auction which would have been the country’s first
  • Mines and Energy Minister Maria Fernanda Suarez said the proposals received were competitive but there was a concentration of generation projects, and awarding the capacity would have been against the country’s antitrust rules
  • The government plans to hold a fresh auction before the end of the first half of the year 2019
  • Enel, Canadian Solar, Isagen and Epsa were among the contenders participating in the auction

After generating huge interest globally for its first renewable energy auction, Colombia has finally awarded the capacity to no one. According to Reuters, 23 energy generation and commercialization contracts were not tendered because ‘only a few of the participating companies would have received contracts, which is against the country’s antitrust rules’. The government plans to hold a new auction before the end of H1/2019.

Previously, Reuters had reported the country received proposals from 27 domestic and international firms for the tender for a total of 1.5 GW. That means the tender was over-subscribed by factor 3 as the original capacity tendered was only 500 MW (see Colombia Gets 1.5 GW Bids For First RE Tender). Enel, Canadian Solar, Isagen and Epsa were among the bidders.

The country’s Mines and Energy Minister Maria Fernanda Suarez was reported to have said that some of these proposals were so low that they matched generation prices, but that there was a concentration of generation projects which would have defeated the purpose of having more competition. “We need to add up all that we’ve learned so our next auction can be successful and there can be an awarding,” said Suarez.

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani