Changing the rules for the renewables auction?

Regulation & Policy, Renewables    Apr 16, 2021 3:36 PM

The Ministry of Mines and Energy (MinEnergia) seeks to make two fundamental changes regarding the upcoming long-term auction of renewable energies.

Energia Estrategica said that one change will be on the offers in Block N 2 (hours between 7am and 5pm), Valora Analitik reported.

Initially, the offer should be 15% of that energy package on Block N 3 (5pm-12am), but the new circular removes this restriction.

“This resolution seems like progress to us, because the solar plants had to bid on Block 2, and it was difficult for them to bid on Block 3, because it is night,” SER Colombia’s Germán Corredor said.

Corredor said that another change will be that projects with energy contracted or with an energy supply contract will be able to participate in the process.

MinEnergia considers that they will only be able to participate in Block 3.

“It seems reasonable to me because it allows projects that have already been awarded, especially wind power, that have a surplus of non-contracted energy to be able to locate it by participating in the auction,” Corredor said.

It is important to remember that in the last auction Block N 3 received few offers, and these changes are intended to avoid this situation again.

Corredor, however, said that these changes are not yet final, as they are under analysis.

Bottom-Line: These changes can be positive to stimulate the investors’ interest and promote new projects and thus guarantee the success of the auction.

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