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Colombian spot energy prices rise amid expanding free market

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Colombian spot energy prices rise amid expanding free market

Colombian spot market electricity prices edged higher in July amid rising demand from deregulated consumers, new figures show. 

The weighted average spot price for the month was 109.66 peso/kWh (roughly US$0.025), up from 104.44 pesos/kWh in June, according to a bulletin from wholesale power market coordinator and grid operator XM.

The figure came as the extractive and logistics sectors underpinned a 7.35% jump in free market electricity consumption to 2,137GWh. 

Extractive industry energy use climbed 26% year-on-year to 566GWh while transport and storage companies were responsible for a 10% rise in consumption to 44GWh. 

Some 894GWh were purchased on the spot market in July, corresponding to 14% of overall demand, which reached 6.57GWh.

XM said the average price of bilateral contracts in the regulated market was 288 pesos/kWh – up 15% on the same period last year. The figure for the deregulated segment – comprising industry and retail users – surged 23% to 265 pesos/kWh. 

Colombia imported 2.98GWh to its national SIN grid in July, up 279% on the same month 2021. The total value of imports was 447mn pesos. Exports, meanwhile, totaled 5.9GWh with an overall value of 723mn pesos. 

In related news, electricity generation group Enel Colombia said it signed a 15-year power purchase agreement with brewing company Bavaria to supply electricity from the Guayepo I and II solar projects.

The deal will see the latter purchase 250GWh/y to power seven breweries, two malting plants and one labelling facility, starting in February 2024.

 

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