The Colombian Ministry of Mines and Energy has deferred the country's first long-term renewable energy auction to the end of February 2019. Initially expected for the beginning of January 2019, it was delayed following a consultation with potential participants in November 2018. The government also extended the timeframe for the power purchase agreements (PPAs) to be awarded through the auction from 10 to 12 years.
The auction will seek to award 1,183 GWh/year of long-term annual average energy contracts, equivalent to around 300 MW of capacity; this is much lower than the initial target to award 3,443 GWh/year. A total of 54 hydropower, wind, solar PV and biomass projects with a cumulated capacity of 3 GW are currently registered with the mining and energy planning unit (UPME) and are eligible to compete in the auction. Only projects commissioned after 31 December 2017 will be allowed to take part to the auction. Successful projects will be selected in March 2019 and are slated to commence delivering electricity as from 1 December 2021.
The auction fits into the government's plan to source 1.5 GW of renewable energy by 2022. It is expected to attract a significant wave of renewable solar and wind projects, whose costs have been falling in recent years across the world. Currently relying on hydroelectricity for 3/4 of its power generation, Colombia is keen to diversify its power mix and develop both solar and wind projects.