- The 1st renewable energy auction of Colombia is to be held in October 2019 as per the revised schedule issued by the government
- Along with solar, other participating technologies in the auction are wind, geothermal, small hydro and wave energies
- Projects with 5 MW of capacity or more will be eligible to compete under the auction and winning projects will be required to supply specific amount of electricity during 3 separate blocks of time
- Interested bidders will submit their offer of specific amount of electricity to the UPME which will then compile offers and determine maximum capacity to be auctioned
Colombia plans to hold its first full-fledged renewable energy auction in late October 2019, announced its Ministry of Mines and Energy. The heartening news comes after the government scrapped the previous auction in February 2019 citing antitrust rules, after the 500 MW tender was oversubscribed receiving 1.5 GW of bids (see No Winners In Colombia RE Auction).
Solar is one of the participating technologies along with wind, geothermal, small hydro and wave energies. Renewable energy projects with 5 MW and more capacity will be eligible to enter the competition and should be able to supply specific amounts of clean power during 3 separate blocks of time.
Market intelligence firm Enerdata says the 15-year power purchase agreements (PPA) determine that buyers will pay for the amount of electricity contracted and not for its withdrawal.
It further adds that the Energy Mining Planning Unit (UPME) of the South American nation will compile offers from generators and announce the maximum capacity to be auctioned and setting a minimum limit to be purchased. Ahead of the auction, a maximum price will be fixed.
Names of shortlisted candidates will be published by September 24, 2019 and winners announced on October 22, 2019.
Details of the auction timeline and other specifics are available on the website of the UPME.
In the previous auction terms launched in January 2019, the country offered 1,183,000 MWh of clean energy deployment annually for which it finally received 1.5 GW worth of bids (see Colombia Gets 1.5 GW Bids For First RE Tender).
In March 2019, Wind Energy and Electric Vehicle Review reported that Colombia’s Energy and Gas Regulatory Commission and XM Company Market Experts auctioned 1,398 MW of renewables under its Reliability Charge Auction with a validity period of 2022-23 with solar securing 238 MW (see 1.39 GW Wind/Solar Awarded In Colombian Auction).