Colombia’s Ministry of Mines and Energy has launched a 15-year electricity contracting scheme to support solar, wind, storage, and hybrid energy projects in Colombia
The mechanism aims to reduce electricity price volatility and improve resilience to climate risks
It introduces battery storage and hybrid project contracts and must be implemented before July 31, 2026
The Ministry of Mines and Energy in Colombia has announced a new long-term clean energy auction that will award 15-year energy supply contracts, aimed at strengthening the country’s power system.
The scheme supports solar, wind, battery storage, and hybrid projects, requiring them to begin supplying power in 2030. It also introduces specific products for solar energy and hybrid projects with storage and supply during peak-demand hours. Incorporating storage is aimed at making the power system more stable and flexible.
The mechanism offers 4 contract types designed for different technologies and supply periods. These include 24-hour supply, daytime solar-only generation, hybrid projects covering daytime and evening demand, and evening peak supply that supports battery storage. There is no fixed capacity target.
It allows new and existing renewable projects of at least 5 MW, with stricter criteria for solar and hybrid categories. Generators and self-generators will sell power to energy retailers.
The bidding process, set out under Resolution 40208, is designed to help energy retailers meet their legal requirement to include renewable energy in the electricity they purchase. The ministry shared that the resolution addresses concerns about future electricity supply risks and increasing exposure to price volatility in the power market from 2027 onwards. This could affect consumers, especially during climate-related events like El Niño.
“The country needs to move beyond energy improvisation and build energy security with a long-term vision. This auction opens the door to new investments in clean energy, storage, and hybrid projects that will protect users from tariff volatility and guarantee firm energy for Colombia’s future,” stated the Minister of Mines and Energy, Edwin Palma.
According to the ministry, the auction must be implemented before July 31, 2026, and will be open to generators, self-generators, and energy marketers. Details are available on its website.
The ministry said an additional auction is planned for 2035 to support long-term energy planning.
The initiative is designed to reduce exposure to electricity price volatility, improve system resilience to climate-related risks such as El Niño, and accelerate the integration of non-conventional renewable energy sources into the national grid.
Earlier this month, the ministry issued Resolution 40178 of 2026 outlining rules for a long-term clean energy contracting mechanism (see Colombia Sets Auction Rules To Attract Clean Energy Investment).