Colombia awards renewable generation projects for 875 million dollars

The Government of Colombia, at the head of the Ministry of Mines and Energy, announced the nine winning companies in the renewable energy auction, which acquired obligations of about 800 new megawatts (MW), in 11 projects in the country that will require investments of 3.3 trillion pesos (875 million dollars).

Canadian Solar Energy Colombia, Celsia Colombia, EDF Energy, Empresa Urrá SA, Empresas Públicas de Medellín (EMP), Enel Green Power Colombia, Fotovoltaico Arrayanes, Genersol SAS and Solarpack Colombia SAS were the firms chosen by the authorities in the matter.

“With this we can say that so far the Government with the auction of the charge for reliability that awarded solar and wind projects, for the first time in history, with the 2019 auction and with this new auction we have already multiplied by more than 100 times the installed capacity of unconventional renewable energy projects that we found in 2018, “said the Minister of Mines and Energy, Diego Mesa.

The 11 projects will start generating energy in 2023, generating about 4,700 new direct jobs. According to the general manager of XM, María Nohemí Arboleda, the results of the auction make it possible to assign long-term contracts for 796.3 MW.

“These new resources that will come from unconventional energy sources represented an increase of 4.3% of the net effective capacity of the system, which added to the projects that were already assigned in previous auctions, allow to increase capacity a little more than 20% coming from these energy sources, “he said.

With the new renewable energy auction, the Ministry of Mines and Energy assured that with the installed capacity in the obligations of 793.6 megawatts, the installed capacity of non-conventional renewable energy sources (FNCER) has already been multiplied by 100, taking into account counts the first auction of the reliability charge and the 2019 auction.

It must also be taken into account that with the result of this mechanism, obligations were assigned that must begin to fulfill their energy supply commitments as of January 2023, representing a reduction of 465 thousand tons of CO2 per year. The contracts, which will have a period of 15 years, were awarded between 9 generating companies and 53 marketers, also closed with a weighted average allocation price of $ 155.8 per kilowatt hour.

Jorge Valencia, director of Creg, said that the obligations in this process “are contractual obligations of energy contracts that are traded in the wholesale market.” (with information from Reuters)

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