Colombia reopens long-term energy contracting with new renewables auction

<p class="p1"><span class="s1">Colombia has launched a 15-year auction scheme to procure solar, storage, and hybrid capacity, with delivery starting in 2030. The mechanism introduces time-of-use products and aims to improve reliability while expanding renewable energy uptake.</span></p><p><strong>From <a href="https://www.pv-magazine-latam.com/2026/04/23/colombia-convoca-una-subasta-electrica-de-largo-plazo-con-productos-para-solar-hibridos-y-baterias/" rel="noopener" target="_blank">pv magazine Latam</a></strong></p>
<p>The Colombian Ministry of Mines and Energy has issued Resolution 40208, dated April 21, 2026, establishing a long-term electricity contracting mechanism to mitigate demand risk, reduce exposure to price volatility, and integrate new renewable energy and storage capacity.</p>
<p>The scheme provides for 15-year contracts, with delivery obligations starting on Jan. 1, 2030. Contracts must be awarded by July 31, 2026.</p>
<p>According to the ministry, the initiative aims to strengthen system reliability, expand the share of renewable energy, and address projected demand coverage gaps from 2027, amid increasing exposure to climate events such as El Niño. The resolution aligns with Decree 1091 of 2025, which sets policy guidelines for long-term contracts covering generation, storage, transmission, and other electricity supply services.</p>
<p>The mechanism defines four products. The first consists of 24-hour supply contracts, with start dates in 2030 or, optionally, 2035. The second covers solar generation between 6:00 a.m. and 6:00 p.m. The third combines two time blocks — from 8:00 a.m. to 5:00 p.m. and from 5:00 p.m. to 9:00 p.m. — targeting hybrid projects. The fourth covers supply between 6:00 p.m. and 10:00 p.m., corresponding to peak demand and providing a direct signal for battery storage systems.</p>
<p>For the first time, the framework includes dedicated products for battery energy storage systems and differentiated schemes for solar PV and hybrid plants. The ministry said the design is intended to increase system flexibility and stability, while supporting compliance with renewable energy procurement obligations for electricity retailers.</p>
<p>Eligible participants in the Wholesale Energy Market include marketing agents as buyers, and generators, project owners, developers, or their commercial representatives as sellers, subject to prequalification requirements.</p>
<p>The auction process will be conducted by a specialized unspecified entity. In the final stage, operations will be managed by the Colombian Mercantile Exchange, according to the government.</p>
<p>The timeline provides for contract awards by July 31, 2026, commercial operation of awarded projects by the end of 2029, and the start of delivery obligations on Jan. 1, 2030. For the optional 24-hour product window, delivery would begin on Jan. 1, 2035.</p>
<p>The tender marks the reopening of long-term renewable energy contracting in Colombia, with a broader scope than previous rounds, including explicit signals for energy storage and time-of-use supply. Earlier this year, <strong>pv magazine</strong> reported that the mechanism aims to close gaps among retailers that fall short of renewable energy procurement requirements while maintaining a 15-year contract structure.</p>
<p>In mid-April, the Colombian governemnt issued <a href="https://www.pv-magazine.com/2026/04/16/colombia-approves-guidelines-for-integrating-energy-storage-into-electricity-system/" rel="noopener" target="_blank">Decree 0393</a>, establishing public policy guidelines for integrating energy storage systems (ESS) into the National Interconnected System (SIN) and Non-Interconnected Zones (ZNI).</p>
<p>The country’s cumulative installed PV capacity reached <a href="https://www.pv-magazine.com/2026/02/11/colombia-deploys-333-mw-of-pv-in-2025/" rel="noopener" target="_blank">1.59 GW at the end of December</a>, according to new figures released by the Colombian administrator of the wholesale energy market.</p>