The Ministry of Mines and Energy of Colombia has selected 7 power generation companies and 22 trading companies in its second long-term renewable energy auction. The auction was open to new renewable (wind, solar, geothermal, small hydro and wave energy) power generation projects of 5 MW and more to be commissioned before 1 January 2022. The 7 power generation companies were awarded 8 renewable projects (5 wind and 3 solar) with a combined capacity of 1,298 MW. A total of 22 trading companies secured the purchase of long-term energy for an average of COP 95.65/kWh (US$2.81c/kWh, or USD28.1/MWh), about COP 50 (US$1.47c, or USD14.7/MWh) below the current cost average in bilateral contracts.
In 2018, 74% of Colombia's power generation capacity stems from hydropower plants, while the remainder comes from thermal assets. Under its Ideario Energetico 2050 policy issued in 2015, the government aims to add at least 474 MW of wind energy capacity, 143 MW of solar, 275 MW of geothermal and 314 MW of cogeneration with biomass by 2028, i.e. a total of 1,207 MW in renewable energy capacity addition. The auction was expected to be a key component of Colombia’s efforts to boost its installed renewable capacity.
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