Colombia is promoting the plan to hold the country's third auction of unconventional energy long-term contract. Under the leadership of the Energy Bureau, the auction is held by the auctioneer XM and the financier Unconventional Energy and Energy eEficiency Management Fund (FENOGE). The two sides signed a contract to provide funds for the technical, legal and technical deployment required to implement the project. The auction has also solicited the preliminary opinions of both parties to standardize the auction contract.
It is understood that Colombia launched the auction in June 2021, the deadline for bidding is July 23, 2021, and said that the results will be announced before October 31, 2021. At present, XM indicates that the distribution plan will be carried out on October 26, 2021.
Colombia Launches New Renewable Energy Auction Amid Ambitious Energy Transition Goals
Bogotá, November 5, 2025 – Colombia is set to kick off another round of renewable energy auctions this month, marking a pivotal step in its ambitious plan to diversify its energy mix and reduce reliance on fossil fuels. The move comes as the nation seeks to achieve its target of generating 30% of its electricity from renewable sources by 2030, with a focus on solar, wind, and green hydrogen.
A Strategic Shift Toward Clean Energy
Colombia’s energy landscape has long been dominated by hydropower, which accounts for nearly 70% of its electricity generation. However, climate change-induced droughts have exposed vulnerabilities in this system, prompting the government to accelerate investments in solar and wind power. The upcoming auction, scheduled for late November, aims to attract private developers to build large-scale renewable projects, particularly in regions with high solar irradiance and wind potential.
The auction follows a successful model introduced in 2019, which awarded contracts for 1.3 gigawatts (GW) of wind and solar capacity. Lessons from that process have been incorporated to streamline bidding procedures, reduce administrative barriers, and enhance investor confidence. Key modifications include clearer risk allocation frameworks and more flexible qualification criteria, which have already drawn interest from international firms.
Focus on Solar and Offshore Wind
Solar photovoltaic (PV) technology is expected to dominate the auction, given Colombia’s abundant sunlight and falling equipment costs. The government has identified several strategic zones for solar farms, including departments like La Guajira and Cesar, where land availability and grid access are favorable. Additionally, Colombia is preparing for its first-ever offshore wind auction in 2026, with initial projects planned for the Department of Atlántico.
Green hydrogen is also emerging as a priority, with pilot projects underway to explore its potential for decarbonizing industries like transportation and mining. The auction may include incentives for hydrogen-related infrastructure, aligning with global trends in clean energy innovation.
Challenges and Opportunities
Despite the optimism, Colombia faces hurdles in scaling up renewables. Social opposition to large-scale projects, particularly in indigenous communities, has delayed some initiatives. Financial constraints remain another obstacle, as the nation balances renewable investments with broader economic priorities.
However, policy support is strengthening. The government has introduced tax breaks for solar equipment imports and subsidies for energy storage projects, aiming to make Colombia a regional hub for clean energy. The upcoming auction is also expected to benefit from rising global demand for sustainable solutions, with Chinese and European firms likely to participate.
Looking Ahead
The auction’s success will hinge on its ability to attract diverse investors while ensuring fair competition. If successful, it could position Colombia as a leader in Latin America’s renewable energy sector, setting a precedent for other nations in the region. As the world transitions toward net-zero emissions, Colombia’s efforts underscore the critical role of auctions in driving affordable, scalable clean energy solutions.
For more updates on Colombia’s energy transition, stay tuned to our coverage.
Seizing Opportunities in Colombia's Renewable Energy Auction
Colombia's latest renewable energy auction presents a pivotal moment for global energy companies. As a leader in sustainable solutions, our firm is strategically positioned to navigate this competitive landscape by leveraging three core strengths:
Localized Expertise
Drawing on our experience in Latin American markets, we offer tailored project designs that align with Colombia's grid requirements and regulatory frameworks. Our team includes bilingual engineers with deep knowledge of regional permitting processes.
Integrated Supply Chain
By diversifying our manufacturing base across multiple continents, we ensure resilient component delivery while maintaining cost-competitiveness. This approach mirrors best practices from successful global energy providers.
Technology Partnerships
Collaborating with innovative local firms, we combine cutting-edge storage solutions with Colombia's abundant solar/wind resources to maximize project efficiency.
Looking ahead, we remain committed to transparent bidding practices and long-term community engagement. Let us help turn Colombia's renewable vision into reality.
Any questions or solar project then please contact PWSOLAR team today to discuss your project needs.
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