New renewable energy auction?

Renewables    Jan 10, 2022 4:39 PM

The Minister of Mines and Energy (MinEnergia), Diego Mesa, spoke about his new agenda for the energy sector.

Mesa told Portafolio that the entity is making an internal analysis on the energy sector.

“We see that there is an important portfolio of projects in the renewable energy pipeline. The decision revolves around the date of entry into operation of these initiatives,” MinEnergia said.

The expert said that the Ministry is studying whether before the end of the current period it is possible to hold a reliability charge expansion auction.

“We see that it is prudent to hold a joint auction for the year 2025-2026, and see how both processes would complement each other. We are analyzing demand projections with UPME, CREG and XM,” Mesa added.

He explained that with the allocations that were made in 2019 and 2020-2021 for renewables, in the event that a new auction moves forward, there would not be a complementary mechanism in the process, but rather it would be a voluntary mechanism.

“In addition, if the entry into operation is in 2024, offshore wind projects could participate,” MinEnergia highlighted.

Mesa said that the Tesorito and Candelaria projects are located in the north of the country and total more than 400MW of installed capacity.

“These projects are very advanced in their development, and have a high level of reliability, they would come into operation in the middle of the year,” the expert concluded.

Bottom-Line: The elections are approaching, and saying that more contracts have been signed will be a good story to end the current government.

The development of these projects will be a problem for the next government…

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