Colombia Energy Auction Awards 1.8 GW of New Solar, Wind Capacity

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Written by Amir Richani for IIR News Intelligence (Sugar Land, Texas)

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Summary

Colombia assigned 143,011,373 kWh/day of firm energy obligations for between December 2029 and November 2030 to 77 power plants. Hydropower dominates the assignments, although wind and solar account for almost 8%. Industrial Info Resources is tracking 33.1 GW in solar and wind projects.

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Contracts Awarded to 77 Plants

Colombia has awarded contracts to 77 power plants out of 85 that participated in its new reliability charge auctions announced in May. The total firm energy obligations assigned between all the contracts is 143,011,373 kilowatt hours per day (kWh/day), for the period of December 1, 2029, through November 30, 2030.

The auction will add 4.0697 gigawatts (GW) of effective net capacity to the system from 2029. Of this, 1.54 GW will come from solar facilities, 246 MW from wind, and the remaining amount to thermal plants. According to Industrial Info Resources data, there are 637 active capital power-related projects in Colombia, including power generation, transmission and distribution, with a total investment value of US$57.58 billion. More than half of those projects are assessed as having a low probability of moving forward as planned.

The 77 plants include 15 new power plants, eight plants that are not yet commercially operational, two plants undergoing upgrades, and 52 operational facilities.

Solar power plants will contribute with 7.7% of the assigned firm energy awarded, thermal plants with 36.4%, and hydropower plants with another 55.8%. Wind accounted for a marginal 0.1% of assigned firm energy.

Plants with higher variable costs had a closing price of US$16.4 per megawatt hour (MWh), while plants with lower variable costs had a closing price of US$2/MWh.

Colombia's Generation Capacity

By the end of the first quarter, Colombia had an effective capacity of 21.3 GW, according to the national operator. Of that capacity, 62% of came from hydroelectric power plants, 29.2% from thermal plants and 8.7% from solar.

However, solar power plants are the fastest-growing technology across the country. By the end of the first quarter, 55 new solar power plants entered the electric systems, totaling 258.9 MW in capacity, while another 119 projects with a capacity of 1.55 GW were initial tests.

According to Industrial Info Resources data there are 415 solar and wind projects across Colombia, totaling investments of US$44.4 billion. However, more than 300 have been assessed as having a low probability of moving forward as planned.

Solar projects represent the largest number of projects tracked by Industrial Info Resources, with 363 in total, accounting for US$21.86 billion, though most of them are of a smaller scale. Together, these solar projects could add 19.5 GW of new capacity.

For wind, Industrial Info Resources is tracking 52 projects with projected investments of US$22.5 billion and a combined capacity of 13.6 GW.

Political Context

The government of Gustavo Petro has been a steadfast supporter of renewable energy and a vocal opponent of fossil fuels. Under his administration, Ecopetrol, the national state oil company, has expanded its renewable-energy portfolio.

On Sunday, Colombia will hold its presidential election in what could mean the continuation of Petro's renewable-energy-driven agenda.

Key Takeaways

• Colombia assigned 143,011,373 kWh/day of firm energy obligations to 77 generation plants for December 2029--November 2030.
• The auction will add 4 GW of effective net capacity from December 2029, including 1.5 GW solar and 246 MW wind.
• Industrial Info Resources is tracking 33.1 GW of new generation solar and wind capacity projects in Colombia worth US$44.4 billion.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).