Delays in 2019 auction projects

Company News, CSR and Social    Jul 30, 2021 12:59 PM

Projects awarded in the 2019 auction have delays due to several problems.

The pandemic forced suspension or postponement of prior consultation processes with communities, affecting the licensing schedule, La Republica reported.

Mauricio Meza, Celsia’s generation project leader, said that the restrictive measures interfered with field work.

“However, we depend on the progress of the prior consultations and the approval of the environmental license,” Meza said.

AES’s Federico Echavarría said that the company’s projects were affected by delays in prior consultations.

Another problem is the entry into operation of the La Collectora Line in La Guajira, which has been assigned to Grupo Energía Bogotá (GEB). Some projects being developed in La Guajira depend on this project being in operation to deliver energy.

“We depend on the transmission lines that connect our projects to the SIN and the reality is that the transmission lines in many parts of the country, and especially in La Guajira, have had some major challenges and will possibly affect our ability to go into operation,” Echarría added.

GEB’s Juan Ricardo Ortega said that the company is working on this project, despite the complicated social situation in the department.

Ortega said that GEB has met with the government and the Ministry of Energy (MinEnergia) to address the difficulties that are causing force majeure.

Bottom-Line: Colombia announced a new renewables auction, but little progress on previously awarded projects is raising doubts among experts and investors.

The government must remember that signing a contract is the first step and they must provide more support to the companies especially on social aspects.

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