Results of new auction

Energy, Regulation & Policy, Renewables    Oct 27, 2021 4:28 PM

The government announced the nine winning companies in the renewable energy auction.

The companies acquired obligations of close to 800MW in 11 projects around the country, La Republica reported.

Canadian Solar Energy Colombia, Celsia Colombia, EDF Energy, Empresa Urrá SA, EPM, Enel Green Power Colombia, Fotovoltaico Arrayanes, Genersol SAS and Solarpack Colombia SAS were the winning companies.

“With this new auction, we have already multiplied by more than 100 times the installed capacity of unconventional renewable energy projects found in 2018,” Minister of Mines and Energy (MinEnergia), Diego Mesa, said.

The 11 projects represent investments of about CoP$3.3T and will start generating energy in 2023, generating about 4,700 new direct jobs.

XM’s María Nohemí Arboleda said that the results of the auction make possible the allocation of long-term contracts for 796.3MW.

“These new resources that will come from unconventional energy sources represented an increase of 4.3% of the system’s net effective capacity, increasing the capacity coming from these energy sources by a little more than 20%,” Arboleda said.

The government assigned obligations to begin meeting energy supply commitments as of January 2023, representing a reduction of 465,000 tons of CO2 per year.

The contracts, which will have a period of 15 years, and were awarded to 9 generating companies and 53 marketers, also closed with a weighted average allocation price of CoP$155.8 per kilowatt hour.

Mesa added that the target demand for this auction was to reach 5,000MWh, Valora Analitik reported.

“It is worth mentioning that there are also a number of self-generation projects that do not have obligations in the auctions, but have come into operation in recent months. We can say that there will remain about 3,500 MW of installed capacity, between what is awarded via auctions and what has entered through other market mechanisms,” Mesa highlighted.

Bottom-Line: This is good news and we hate to be negative, but it would be helpful if the UPME could give us an easy diagram that showed where we are between capacity commitments and demand projections, with and without Hidroituango completing as scheduled.

As the Ministry says, there is existing capacity, capacity committed to be online via auctions, self-generation capacity, and even private auctions.

And we have a huge risk with Hidroituango that a big part of what the UPME was assuming as a firm commitment may not make it on time – or at all.

The country deserves a proper accounting.

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