Colombia’s first clean energy auction opens door to $2.2 billion in funding


Colombia has held its first renewable energy auction which will add up to 1.3GW of clean energy capacity to the country’s main grid.

The renewable energy auction has resulted in the signing of 15-year power purchase agreements in which up to 1,077MW of wind energy capacity will be added.

The deals expand the country’s renewable energy capacity from 1% today to 6%, with a goal of increasing this to 17% by 2030.

Despite the positive development, there is still much needed to expand renewable energy adoption in Colombia, according to the Global Wind Energy Council (GWEC) and SER Colombia.

The two have urged for:

  • The development and implementation of new regulation that will challenge the project development phase such as environmental licensing, grid connection and integration.
  • Local project financing and long-term industrial planning must continue to be addressed by the industry

Julián Zuluaga, Head of Office for Regulatory and Business Affairs at the Ministry of Mines and Energy Colombia, said: “The international context of necessary acceleration of renewable energy to reduce carbon emissions along with the maturity of wind power technology and its competitiveness in energy markets globally have been strong drivers to set up renewable energy targets in Colombia.

“These targets will be crucial to support the country’s energy policy frameworks to increase energy efficiency, diversify the security of energy supply and ensure universal access to electricity for all Colombians.”

Ramon Fiestas, Chair of GWEC in Latin America, said: “Green growth in Colombia is becoming a priority for the country. In the country’s first renewable energy auction last month, the winning projects will generate more than $2.2 billion in investment over the next three years. Wind power accounted for 83% of the allocated capacity and is, therefore, an industry with enormous potential to attract even more local investments and jobs to build Colombia’s economy while moving towards a more secure and low-carbon energy system.

“As Colombia is considered one of the top twenty countries at the greatest risk for climate change impact, we must make sure that we continue on the momentum of the auction to power sustainable development in the country”.