Solar Sweeps Colombia’s 3rd RE Auction

• Colombia has selected 796.3 MW of solar power capacity for its 3^rd renewable energy auction
• The weighted average winning tariff determined at COP 155.8 per kWh is 15% lower than current market price
• 9 winning companies need to bring the capacity online by January 1, 2023; power generated will be procured by 53 offtakers

Colombia's Ministry of Mines and Energy has selected 11 solar power generation projects with a combined capacity of 796.3 MW in the country's 3^rd renewable energy auction concluded on October 26, 2021.

The weighted average winning price in the auction was COP $155.8 ($0.041) per kWh, which according to the authorities, is not only a stable price over a long term, but is also 15% below the market price for electricity in the country. The ministry said this is very positive given the current circumstances in the renewable market with logistical challenges.

A total of 9 companies emerged as winners of the auction:

• EDF Renewables,
• TWSolar,
• Canadian Solar,
• Solarpack,
• Genersol,
• Enel Green Power,
• Empresas publicas de Medellin (EPM),
• Celsia,
• Urra.

Winning projects worth COP $3.3 trillion need to come online by January 1, 2023 under 15-year power purchase agreements (PPA). Facilities once complete will be connected to the national grid and supply power to 53 offtakers.

In the country's 1^st renewable energy auction, Colombia awarded 2.8 GW capacity in October 2019 (see Trina Solar Wins Big In 1^st Colombian RE Auction). It was followed by the 2^nd renewable energy auction called Reliability Charge Auction when it awarded 1,398 MW including 238 MW of solar capacity to the winners (see 1.39 GW Wind/Solar Awarded In Colombian Auction).