Colombia Holding Another Round of Renewable Energy Auction

2021/08/23

Colombia Renewable Energy Auction: 1.2GW Solar Capacity Open for Bids

Colombia's third renewable energy auction creates new opportunities for solar module and project supply chains

Colombia renewable energy solar auction

1.2GW

Solar Capacity in This Auction Round

20%

Colombia Renewable Energy Target by 2030

5.9GW

Contracted Renewable Capacity to Date

$45

Avg. Clearing Price Per MWh (USD)

Colombia's Ministry of Mines and Energy has launched its third renewable energy auction, with approximately 1.2GW of solar PV capacity tendered. The auction continues Colombia's strategy of diversifying power generation away from hydroelectric dependency, with solar emerging as the most cost-competitive option in the country's energy transition.

1. Why Colombia Is Accelerating Solar Auctions

Hydro dependency risk: Colombia generates over 65% of its electricity from hydropower — making the grid highly vulnerable to El Niño-related droughts and changing precipitation patterns
Growing demand: Colombia's electricity consumption is projected to grow 3-4% annually through 2030 — requiring diversified new capacity additions
Cost competitiveness: Solar PV is now the cheapest source of new electricity generation in Colombia, consistently clearing at $40-50/MWh in competitive auctions
Policy support: Law 1715 (Renewable Energy Law) provides 5-year income tax exemptions and VAT exclusions for renewable energy projects

2. Key Requirements for Bidding Projects

Grid connection requirement: Projects must demonstrate credible grid connection agreements and UPME system study clearances
20-year PPAs: Successful bidders sign 20-year power purchase agreements with ENEL Colombia (national grid operator)
Module certification: IEC 61215, IEC 61730 certification required; projects financed by multilateral development banks also require IFC Performance Standards compliance
Local content consideration: While not mandatory, local content scoring provides bid advantages in Colombia's evaluation criteria

3. Colombia's Solar Resource: Among the Best in Latin America

High irradiance: Northern Colombia (La Guajira, Cesar, Sucre) receives 5.5-6.0 kWh/m²/day — among the highest in the Americas
La Guajira Department: Wind and solar potential equivalent to 500GW combined — driving large-scale project development in this region
Stable climate: Low humidity variance compared to Brazilian Amazon and Caribbean basin — reducing soiling losses and module degradation rates
Bifacial advantage: Colombia's bright ambient albedo conditions make bifacial N-type modules particularly valuable for ground-mount projects

Supplying Colombia's Renewable Energy Auction Pipeline? PWSOLAR Delivers

PWSOLAR's N-type TOPCon bifacial range — especially the 730W utility module — is optimized for Colombia's high-irradiance auction projects and meets all certification requirements for bankable project financing.

✅ Up to 24.02% module efficiency — maximum yield in Colombia's high-irradiance conditions

✅ IEC 61215, IEC 61730 certified — meets auction compliance and MDB financing requirements

✅ Bifacial 730W utility module — optimized for Colombia's ground-mount auction projects

✅ FOB/CIF logistics from China — established supply chain to Colombian ports

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