Colombia's Ministry of Mines and Energy announced on Friday the awarding of new licenses for electricity generating projects, aimed at increasing the country's capacity by a significant 4,489 megawatts between 2027 and 2028.
According to the ministry's statement, an auction was conducted wherein a staggering 99% of the new capacity was allocated to solar plants, with the remaining 1% designated for various thermal biomass projects, including the repair of a gas plant, construction of a biomass plant, and the expansion of a bio-gas plant.
The closing price of the auction was disclosed at $18.20 per megawatt hour, though the identities of the awarded companies were not revealed by the ministry.
The ministry further detailed that post-auction, starting from December 1, 2027, the additional effective net capacity of the electrical system is anticipated to reach 4,489 MW, with 48 MW stemming from thermal sources and a whopping 4,441 MW from solar energy.
This move signifies a significant shift in Colombia's energy landscape, as solar power is poised to surpass thermal sources, constituting 26% of the country's electricity generation, while hydroelectricity's share is set to decline from 66% to 50%, as per the ministry's assessment.
In a statement on X, formerly known as Twitter, Minister of Mines and Energy Andres Camacho expressed satisfaction with the results, noting that the country's net effective capacity for the grid is projected to rise from 20 GW to 26 GW with the implementation of these projects.
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2. Con estos resultados y proyectos que vienen en camino con compromisos de energía firme, nuestra matriz energética en capacidad efectiva neta del Sistema Interconectado Nacional pasa de 20 GW a 26 GW. pic.twitter.com/A8NVPoCopX
— Andrés Camacho M. (@andrescamachom_) February 16, 2024
Looking ahead, Camacho announced plans for an upcoming auction exclusively dedicated to renewable energy projects, underlining the government's commitment to reducing reliance on fossil fuels, particularly oil and coal, which have traditionally dominated Colombia's energy sector and economic revenue streams.
See also: Verano Energy Acquires 296MWp Solar Projects in Colombia, Expands On-Grid Portfolio in Latam
It's worth noting that while Colombia's renewable energy ambitions are ambitious, challenges persist, with wind and solar projects often facing resistance from local communities and objections from environmental authorities.
