Colombia launches first offshore wind auction

Colombia has opened a competitive bidding process for concession rights to develop offshore wind projects as it ratchets up plans to replace fossil fuels with renewable energy. 

According to documents published by hydrocarbons agency ANH, developers have until February 21 next year to express interest in the auction and May 22 to request geographical boundaries for their projects. 

A preliminary list of qualifiers is due to be published on March 26 and offers are due on August 2. 

Successful bidders will be announced from November 18 to 20 ahead of an April 3, 2025, deadline for guarantees. 

The winners will be ratified by national maritime authority Dimar from April 4 to May 4, 2025, according to ANH. 

“We invite investors from all over the world ... to fall in love with Colombia, to contribute to this process of economic, social, environmental and energy transition,” energy minister Andrés Camacho said.

The auction, initially earmarked for the second half of this year, was postponed in early September after officials said more time was needed to define "specifications and conditions." 

It will offer 30-year lease agreements for areas in Caribbean waters off the departments of Atlántico and Bolívar. Projects must have capacity of at least 200MW.

The energy ministry said it had worked with the Danish government's energy agency and the World Bank to create contract models for the projects. 

Colombia has emerged as one of Latin America's most promising offshore wind markets following the publication of a long-term sector blueprint in May last year.

The 217-page roadmap, authored by London-based firm Renewables Consulting Group in partnership with the World Bank and the UK government, says Colombia has the potential for 50GW of offshore wind capacity in the western Atlantic basin.

The document forecasts up to 1GW of installed marine wind capacity by 2030, 3GW by 2040 and 9GW by 2050.

Officials have said that electricity generated from projects would be used to bolster Colombia's installed power capacity and could also be utilized to produce green hydrogen via electrolysis. 

News of the offshore wind auction coincides with growing concerns about the slow pace of Colombia's clean energy transition.  

According to renewable energy association SER Colombia, around two thirds of solar and wind projects due online by December 2024 are running behind schedule while a slew of transmission projects have also been postponed.

Industry observers have cited social unrest and environmental licensing requirements – including a need to conduct exhaustive consultations with individual communities – as a major reason for the delays.

Further details about the auction, in Spanish, can be seen here