Colombia awarded renewable power projects worth $2.2 billion

Colombia renewable power

This week, the government of Colombia awarded eight renewable projects, five wind and three solar power projects, with a total capacity of 1,298 MW.

Seven generators and 22 distributors won eight contracts, setting a milestone of $2.2 billion invested in wind, solar, and biomass energy.

The tender process was organized by the Mining and Energy Planning Unit (UPME), an entity under the Ministry of Mines and Energy. These results mark a turning point in the nation’s history of renewable power generation.

Renewable power diversifying the nation’s electrical grid

Minister of Mines and Energy María Fernanda Suárez stated: “This is the start of a revolution that enables us to diversify our electrical grid. Our energy mix is very clean as 70% comes from hydroelectric sources. However, it also makes us vulnerable to climate variations and shortages caused by phenomena like El Niño. Now, we will be able to combine these generation sources and complement them with renewable energies that use the sun and the wind. This way, our energy matrix will be increasingly cleaner, resilient, and environmentally friendly.”

At the end of the tender, the weighted average price stood at $95.65 per kilowatt/hour (kWh); for a price of around 50 Colombian pesos under the current price of power generation in bilateral contracts.

Top price stands at $200 per kWh

During the tender, Colombia’s Energy and Gas Regulatory Commission (CRE) established an individual top price of $200 per kWh and a weighted average price of $160 per kWh.

The target demand, determined by the Ministry of Mines and Energy, was 12,050.5 megawatts per day (MWh/day). The total power assigned was 10,186 MWh/day.

Once finalized, the UPME verified that, in accordance with article 5 of Resolution MME 40725 of 2019, the positive difference between target demand and the amount of power assigned was 1,864.5 MWh/day and the forecasted maximum selling price stands at $110 per kWh.

In this way, the complementary mechanism, a new round, was scheduled for October 23, 2019. The maximum prices established by the CREG would also be valid during this process.

The Long-term Energy Contract Tender No. 02-2019 included the participation of 20 qualified energy generators and 23 distributors that met the established pre-qualifying requisites for participation.

For more information, check Energía16

See also: Seven companies to supply renewable power in Colombia following energy tenders

Load More Related Articles
Load More By Energía 16
Load More In News

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

Saudi Aramco listing has already attracted €17.6 billion

Saudi Aramco’s Initial Public Offering (IPO) has attracted approximately 73,000 million ri…