Benefits of energy auction

Regulation & Policy, Renewables    Nov 9, 2021 6:07 PM

SER Colombia’s Germán Corredor spoke about the benefits of the last unconventional renewable energy auction and the possibility of holding a new one next year.

Corredor told Valora Analitik that he is not sure that the country needs a new auction in the short term.

“Possibly not, because the country’s installed capacity is fine, the Hidroituango issue is a question mark, but despite the delays, it will enter in 2023 at the latest,” Corredor said.

Corredor said that the last auction achieved the award of 88MW, being an important result and a new impulse to the development of unconventional renewable energies.

“It would have been possible to have more megawatts, but I believe that a good part of the target demand was awarded, almost 90%, which is a good figure. We consider it a positive result with prices better than market averages,” Corredor said.

The expert acknowledged that the government awarded a little less than the previous auction in terms of installed capacity.

“However, the target demand this time was lower, which means it is within acceptable ranges,” Corredor said.

Corredor highlighted that these new projects will contribute to diversification and the economy, generating jobs especially in the construction process.

“In terms of diversification, it is an interesting increase in the percentage of renewables in the matrix, we are talking about 5% more. And this points to the direction of going towards 20% or 30% by the end of the decade,” Corredor said.

The expert added the country is developing more renewable energy projects in other regions that did not enter the auction.

“In fact, in September a 20MW project in Sucre entered into operation. Others are being developed in departments of the Atlantic Coast, there are projects that did not participate in the auction because they were not far enough along but are under development,” Corredor said.

Bottom-Line: The government should focus on supporting and guaranteeing the development of the awarded projects, as they are having problems with environmental and social licensing issues.

However, it seems like authorities are more interested in saying that they awarded a large number of contracts (for which they get credit), rather than seeing the projects completed (which may be credited to the next government).

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