Colombia Awards Close To 1.4 GW Renewable Energy Capacity Under Reliability Charge Auction

 

After scrapping what would have been the country’s first renewable energy auction in February 2019, Colombia has now auctioned 1,398 MW of renewable energy capacity under its Reliability Charge Auction with validity period being 2022-2023, according to Wind Energy and Electric Vehicle Review. At least 77% of the country’s power generation capacity comes from hydro and 18% from thermal plants. To ensure reliability of power generation capacity even during times of drought, power contracted under the country’s Reliability Charge (RC) mechanism is expected to provide reliability to the generation and supply system in Colombia.

Out of the 23 plants assigned in the latest round, 12 are thermal, 6 wind power, 3 hydraulic and 2 solar power plants. Wind grabbed 1.16 GW of 1.39 GW, with solar settling for 238 MW.  The list of winners shared by XM includes 2 solar power projects – El Paso Solar of Emgesa S.A., and La Loma Solar of Enel Green Power Colombia. Both the projects will be developed in Cesar department.

The closing price of the auction was $15.1 per MWh, which is 11% less than the $17.01 per MWh achieved during the previous reliability charge auction.  Conducted by the Colombian Energy and Gas Regulatory Commission (CREG) and XM Company Market Experts, a subsidiary of the state transmission company ISA, through the auction, a total of 250.55 GWh-day capacity was allocated out of which 37.37 GWh-day corresponds to new generation projects.

A total of 4,010 MW of capacity was contracted. CREG said, “With the realization of the auction of the Reliability Charge, the demand for electric power in Colombia is guaranteed the supply of energy until November 30, 2023, thanks to the firm energy committed in this mechanism by the generators.”  The Colombian Ministry of Mines & Energy cancelled the country’s first renewable energy auction citing antitrust rules of the country. A new auction is expected in H1/2019 (see No Winners In Colombia RE Auction).