The Colombian government has issued Resolution 40178 of 2026, outlining rules for long-term clean energy contracting mechanisms, including competitive auctions
The framework is intended to attract investment in renewable energy and battery storage
Authorities plan to launch the first auction under the new model, with contracts expected to run for up to 15 years
Colombia’s Ministry of Mines and Energy has issued Resolution 40178 of 2026, establishing the regulatory framework for long-term clean energy auctions as part of the country’s energy transition strategy. The mechanism aims to attract investments in renewable energy and battery storage projects to ensure electricity price stability and energy security.
Under the new rules, the government can launch competitive long-term contracting processes when market conditions require additional supply, when there is a risk of energy shortages, or to advance national energy policy goals.
The contracts, expected to run for up to 15 years, will specify energy volumes, prices, supply start dates, contract durations, and performance guarantees.
Project developers participating as sellers will be responsible for building and commissioning projects on schedule and delivering the contracted energy, while buyers must ensure payment and provide financial guarantees.
An optimization algorithm will be used to match purchase and sales offers, aiming to maximize benefits for end users and promote cost-efficient electricity supply.
“This regulation, along with Decree 1091 of October 16, 2025, was designed with a long-term perspective, so that the national government can convene, when required, the different competitive long-term contracting mechanisms, such as auctions, without being tied to the issuance of new rules,” explained the Minister of Mines and Energy, Edwin Palma.
The first call for bids under the new mechanism is expected soon and will include projects based on clean energy sources, battery storage systems, and time-of-use energy products.
The auctions will be technically executed by the Bolsa Mercantil de Colombia as the logistics operator.
The ministry said the framework is intended to diversify the country’s electricity mix, improve energy reliability, reduce the risk of shortages, and support fair electricity prices for consumers.
In February 2026, Colombia reached 4 GW of clean energy generation capacity, representing 17.09% of the national electricity matrix, 2 GW away from the 6 GW target set by the government under President Gustavo Petro.
However, Colombia’s total technical-economic solar energy potential stands at around 8 TW for projects larger than 50 MW, and 7.4 GW for projects smaller than 5 MW, according to a Stockholm Environment Institute report from October 2025. At the end of 2025, the country’s total installed solar energy capacity had reached 1.73 GW, as per the International Renewable Energy Agency (IRENA).
Earlier this year, the Ministry launched a COP 103.7 billion funding call to support clean energy generation, sales and its efficient use, covering both solar farms as well as solar PV self-generation projects along with power infrastructure upgrades (see Colombia Opens COP 104 Billion Clean Energy Funding Call).
