New renewables auction

Regulation & Policy, Renewables    Jun 15, 2021 5:15 PM

The Ministry of Mines and Energy (MinEnergia) has announced the third Long-Term Auction of unconventional renewable energy contracts.

The new auction will be held before October 31st, 2021 by the Administrator of the System of Commercial Exchanges (ASIC), Valora Analitik reported.

“This new auction will be a great contribution to sustainable reactivation and will allow us to continue consolidating Colombia as a regional reference in energy transition,” MinEnergia Diego Mesa said.

The expert said that the country has increased more than eight times the installed capacity in unconventional renewable energy projects.

“Our goal is to reach 1,000MW in 2021 thanks to the entry into operation of around 80 additional projects,” Mesa highlighted.

MinEnergia said that the wining projects in this auction must fulfill their energy supply obligations from January 1st, 2023. The supply period will be 15 years.

The projects will have the possibility of an extension of up to two years for the start-up date, without the execution of the guarantee.

However, the generator will be obliged to comply with the energy commitments acquired during this time.

Bottom-Line: The government continues to work to boost the renewable energy sector and this announcement is an important step towards achieving this.

However, authorities must make a greater effort to support the development of the projects as several of them face social conflicts and delays in environmental licenses, among other issues.

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