Colombia readies new auctions to guarantee energy supply

Colombian power sector regulator Creg has announced plans for three reconfiguration auctions early next year as it seeks to ease fears of a looming electricity deficit. 

The auction will offer contracts for firm energy obligations for the periods 2025-26, 2026-27 and 2027-28, according to a Creg resolution. 

Generators may submit bids involving free capacity from existing plants, projects under development or new generation units, it added.

All participating plants and projects must have approved connections to the national interconnected system (SIN) and the necessary environmental permits. 

"With this resolution, [we] seek to lay the foundations to ensure the country's energy reliability in the short and medium term, making key decisions," Creg director Antonio Jiménez said. 

The entity said it expects to finalize the auctions in the first quarter of 2025. 

Meanwhile, Creg revealed it was also analyzing convening an expansion auction for the 2028-29 period.  

Power generators’ association Andeg has warned that Colombia could face an energy shortfall of 4-6% of total demand by 2027, with an estimated annual gap of 4-5TWh, equivalent to a capacity deficit of up to 2,000MW.

More information about the auctions can be seen here and here.