Global interest in Colombia’s auction for renewables spikes


Colombia’s upcoming energy auction for large-scale solar and wind projects, set for the end of September 2019, has drawn interest from no less than 27 companies, according to the country’s National Mining and Energy Planning Unit.

The mining and energy department said over 26 power distribution companies will participate in the auction, including local renewable energy company Celsia, state-owned Empres Colombiana, which is predominately focussed on the oil sector, and Enertotal.

International bidders include Acciona, Solarpack and Cobra from Spain, China’s Trina Solar, as well as Canadian Solar, EDF and Greenyellow from France, Italy’s Enel, as well as several special-purpose conglomerates.

Successfully selected projects will be entitled to a 15-year power purchase agreement (PPA), but will have a go-live deadline of 01 January 2022. Contracts will also be linked to the local Colombian peso, subject to updates based on a Producer Price Index certified by Colombia’s National Administrative Department of Statistics.

The new auction follows a failed attempt in February 2019, which saw shorter PPA periods, and a lack of suitable applicants as offers didn’t meet the criteria set for ensuring fair market competition. In mid-July, the country’s mining and energy department announced its approval of 90 renewables projects with a generation capacity of 6.27 GW in recent years, with 70 of these for solar parks, with a combined capacity of 4,353 MW.

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