Enel Colombia, a Latin American utility, has emerged victorious in Colombia's latest reliability charge auction, bolstering its commitment to sustainable energy solutions in the region. The utility has been awarded firm energy obligations, undertaking to supply 856 GWh of electricity annually from its upcoming solar farms in Colombia.
The Bogota-brd group, a division of Italian utility Enel SpA, disclosed that its six solar projects, totaling 1,215 MW, have been selected to supply electricity starting from December 2027. These projects include the Fundacion, Guayepo III, Atlantico, Sahagun, Valledupar, and Chinu solar farms, each contributing to Colombia's renewable energy landscape.
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The Fundacion solar farm, which commenced operations in August 2023, has already secured a power purchase agreement (PPA) following Colombia's renewable energy auction in October 2021. Commercial operation for this plant is anticipated during the first half of 2024. Meanwhile, construction of the Guayepo III solar farm in the Atlantico department is slated to commence in the near future, further expanding Enel Colombia's renewable energy portfolio.
The reliability charge auction, concluded on Thursday, allocated firm energy obligations to 4,441 MW of new solar power and 48 MW of thermal power plants, alongside existing hydro and thermal facilities. The closing price for the auction was announced at USD 18.2 (EUR 16.90) per MWh by Colombian grid operator XM, marking a significant milestone in Colombia's energy transition.
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With these firm energy obligations, power generators assume the responsibility to ensure a steady and continuous supply of electricity, particularly during critical periods such as El Nino droughts. The supplies allocated through the auction are set to commence on December 1, 2027, and conclude on November 30, 2028, further solidifying Colombia's commitment to a sustainable and reliable energy future.
