Colombia announces new renewable energy auction

The Colombian government has unveiled plans for a new auction of long-term power supply contracts in the first half of next year, as it ratchets up investment in non-conventional renewable energy. 

Participating generators must have wind and solar projects with approved grid connections that are due online before December 2022, according to President Iván Duque. 

"This new auction will make Colombia a leader in Latin America's energy transition," Duque said during a speech to inaugurate the Bayunca 1 solar park in Cartagena. 

He added that the auction would target free-market industrial users, but the energy ministry later said it did not rule out the participation of distributors serving the regulated market. 

The Duque administration has sought to attract renewable energy investment as part of efforts to diversify an energy mix that is heavily reliant on hydropower and fossil fuel-fired thermoelectric power. 

In the country's first two auctions for long-term power purchase agreements (PPAs) last year, developers committed to building 2.8GW of new capacity by 2022. 

The projects, which comprise nine wind farms and five solar parks, require expected investment of more than 7tn pesos (US$1.9bn).

The energy ministry said it would announce the terms of reference for the new auction in the coming weeks.

Last week, Bogotá-based electricity supplier Renovatio launched Colombia's first private auction for renewable energy. Company general manager Francisco Sanclemente told BNamericas that generators would have until December 30 to submit offers for contracts totalling up to 20GWh a month.