Renewables Oct 23, 2019 1:56 PM
The government and the Energy Mining Planning Unit (UPME) hosted the first auction of unconventional renewable energy sources in Colombia, highlighting positive results.
The Ministry of Mines and Energy (MinEnergia) explained that Colombian households will soon have access to solar and wind energy at lower prices, thanks to this auction.
The process had the participation of 20 generating companies and 23 qualified marketers.
The UPME then confirmed that it assigned generation responsibilities to eight projects (five for wind energy and three for solar projects), awarded with a total effective capacity of 1,298MW of installed capacity.
Seven generating companies and 22 marketers received allocations in the process.
The auction ended with a weighted average allocation price of CoP$95.65 kilowatt / hour; around CoP$50 below the current average generation cost in bilateral contracts.
MinEnergia Suárez said that these results represent an “energy milestone” for the country.
“This is the beginning of a revolution because it allows us to diversify our energy matrix,” she said.
The expert recalled that the Colombian energy matrix is one of the cleanest in the region, but very vulnerable to climatic phenomena, explaining that these new energy sources will help complement it.
“We will have an increasingly clean, resilient and environmentally responsible matrix,” Suarez concluded.
Bottom-Line: Without a doubt, this is a step in the right direction to start Colombia’s energy diversification process.
The government has made a great effort to succeed in this auction and investors responded in a positive way.
Authorities must continue on this path to attract more investment, as the country has great potential for energy generation with unconventional renewable sources.