Renewable energy auction: an update

Regulation & Policy    Oct 23, 2021 2:41 PM

XM announced that the last stage of the pre-qualification process has been completed.

The company said that 61 participants met the pre-qualification requirements, including the bid bond that allows them to participate in the renewable energy auction, Portafolio reported.

XM reviewed and approved the submission of the bid bonds by the participants, enabling 61 participants to continue in the process.

For the awarding of the auction, 44 buyers and 17 sellers are qualified, the latter representing 29 generation projects.

“This new renewable energy auction will allow us to continue diversifying the generation matrix and consolidate the Energy Transition as our legacy for the present and the future of millions of Colombians,” Minister of Mines and Energy (MinEnergia), Diego Mesa, said.

The long-term renewable energy auction to be held on October 26th will be a two-pronged closed envelope auction with voluntary participation for buyers and sellers.

“We see from Fenoge that the goal proposed from the beginning is being fulfilled. This auction provides a space for strategic relationships so that these projects can compete with each other, seeking a long-term award that mitigates investment risks,” said Katharina Grosso Buitrago, Executive Director of Fenoge.

XM’s Maria Nohemo Arboleda said that the company affirms that all steps of the auction have been developed in compliance with the law and applicable requirements.

“The energy allocations made on October 26th will allow us to continue diversifying our energy matrix and have an increasingly flexible system to provide the best energy to Colombians in the short, medium and long term,” Arboleda said.

Bottom-Line: The auction generates great expectations to continue promoting the inclusion of new generation sources in the country’s energy matrix.

However, this process could be more successful if the government announce measures on prior consultations, which are delaying important projects including transmission projects which are essential for getting this energy to market.

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