Colombia to hold 5 GW renewables auction in Q1 2021

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From pv magazine Latam

The president of Colombia, Iván Duque, announced during the inauguration of a solar plant on Tuesday that the country's second renewable energy auction has been scheduled for the first quarter of next year.

Through the auction, the Colombian government is planning to allocate around 5 GW of renewable energy capacity. Projects selected in the procurement exercise will have to be grid-connected by the end of 2022. The auction bidding terms will be defined by the Ministry of Mines and Energy over the next months.

Duque added that Colombia is going to define the green hydrogen roadmap for the country in collaboration with Chile, and plans to develop “two or three important projects” in this area.

“Minister, do not leave me without attending any solar farm that has to be inaugurated,” Duque said during the commissioning ceremony of the Bayunca 1 Solar Park, in the Bayunca district located north of Cartagena.

Colombia’s National Mining and Energy Planning Unit allocated 2.2 GW of solar and wind power generation capacity in the country’s first renewable energy auction, which was finalized in October 2019. The exercise’s final average price was COP95/kWh ($0.026), and the highest bid reached only COP110.

Projects selected in the auction are entitled to a 15-year PPA and must come into operation by January 1, 2022. Contracts will be linked to the Colombian peso and updated based on a producer price index certified by Colombia’s National Administrative Department of Statistics.

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