Colombia's first long-term renewable energy auction, which was launched in early 2019 and attracted bids totalling 1,500 MW from 27 companies, has been declared void over competition concerns. The government failed to award 23 power generation and commercialisation contracts on grounds that only a few of the participating companies would have received contracts, thus infringing Colombia’s antitrust rules. The government intends to move on and plans to hold a new auction before mid-2019.
Under terms published in early 2019, the tender process would have granted contracts for the supply of 1,183 GWh under 12-year power purchase agreements (PPAs). The projects were initially slated for selection in March 2019 and due to start generating power in 2021.
About 70% 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 reach at least 474 MW of wind energy capacity addition, 143 MW of solar, 275 MW of geothermal and 314 MW of cogeneration with biomass (a total of 1,207 MW in renewable energy capacity addition by 2028). The auction was expected to be a key component of Colombia’s efforts to boost its installed renewable capacity.