Third renewables auction

Regulation & Policy    May 10, 2021 4:58 PM

The Ministry of Mines and Energy (MinEnergia) announced a new date for the third energy auction of long-term contracts.

The entity will develop this auction in October this year, with the aim of introducing more unconventional renewable generation projects to the country’s energy matrix, Portafolio reported.

The government had planned to hold this auction in the middle of this year, with the aim of having more time for organizing the resolution that will contain the regulations.

Representatives of MinEnergia said that the entity has just started the phase of studying opinions on the proposed rules and then the final resolution will be issued.

They said that the final date will be published in the resolution.

The auction will consider projects of Unconventional Renewable Energy Sources (FNCER) with capacity equal to or greater than 5 megawatts (MW). In addition, projects with a capacity between 5MW and 20MW that wish to participate must declare that they use centralized dispatch for the duration of the contract.

“In 2020, Colombia multiplied FNCER’s installed capacity by more than seven times with more than 225MW. The country will increase its capacity by about 50 times with the projects that will be in operation and construction in 2022,” MinEnergia Diego Mesa highlighted.

The expert said that this new auction will help diversify the energy matrix, making it more resilient to climate variability and contributing to the reduction of carbon dioxide emissions.

SER Colombia’s Germán Corredor said that these auctions have proven to be an efficient and highly competitive mechanism for the development of renewable energy projects.

“Public offerings for FNCER have been the most widely used procedure worldwide to boost energy transformation,” Corredor said.

Bottom-Line: The news of postponing the auction comes during an agitated social crisis in Colombia.

The new date gives the government more time to solve this problem, and thus prevent social conflict from reducing the investors’ interest in this auction.

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