XM published the final bidding documents for the third renewable energy auction in the country.
This publication comes after the stage of comments to the pre-bidding specifications, in which 272 observations were received from 31 interested parties, La Republica reported.
The long-term renewable energy auction will be a two-pronged closed envelope auction with voluntary participation for buyers and sellers.
The two-pronged criterion implies that both the supply and demand sides receive bids and the result of the allocation takes both into account.
The long-term contracts will have a term of 15 years from January 1st, 2023.
XM’s María Nohemi Arboleda said that sale offers and purchase offers will be assigned and be codified in long-term contracts for the supply of energy thanks to this auction.
“These new generation resources will allow us to complement our energy matrix and, in the same way, provide greater flexibility to the system,” Arboleda said.
The Minister of Mines and Energy (MinEnergia), Diego Mesa, said that this third auction will firm up the Energy Transition that has made Colombia an international reference in the incorporation of renewable energies from unconventional sources.
“The publication of the bidding documents will allow us to advance in the process to successfully advance this new auction, diversifying our electricity matrix and making it more resilient,” Mesa said.
Bottom-Line: This auction generates great expectations as the government needs to allocate more contracts to guarantee supply in the medium term, due to there are unfeasible generation projects.
Authorities have the challenge of attracting the investors’ interest, despite the fact that the projects assigned in previous rounds have not advanced as planned.