Colombia announces first large-scale renewable energy auction

09 January 2019 - 12:00 am UTC

Colombia’s Unit of Mining and Energy Planning (UPME) has launched the tender documents for the first renewable energy auction to happen on 26 February.

In the auction, developers will compete for 12-year power purchase agreements PPAs for 1,183GWh/year. UPME said that the Ministry of Mines and Energy (MME) enabled the PPAs as a mechanism to meet 4.35% of the power demand expected by 2022. 

UPME has set 18 January as the deadline to make comments on the tender documents and 28 January as the deadline to qualify.

To qualify, four criteria with a total of 25 points each will be considered: resilience, diversification of the matrix, national energy security and reduction of CO2 emissions. The minimum score that the projects must meet to qualify must be greater than 50 points.

The auction will only consider power generation projects whose initial date of operation is after 31 December 2017. Contracts will run from 1 December 2021, with UPME planning for these agreements to be signed this year between 26 and 29 March.

The government had previously announced a total of 54 hydropower, biomass, wind and solar PV projects with a combined capacity of 3GW are currently registered with UPME and were eligible to compete in the tender.

Colombia’s first clean energy auction would “diversify, complement and boost the competitiveness of the energy matrix, making it more resilient to climate variability, contribute to the reduction of carbon dioxide emission and guarantee the country’s energy security”, the MME added.

UPME will serve as coordinator of the process between power generators distribution utilities.

To access to the tender documents, click here

 

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