Colombia’s Ministry of Mines and Energy has issued a new resolution, which launches the first round of offshore wind bidding.
The round, which will operate under a contract for differences (CfD) scheme, is designed to promote strategic technologies that strengthen the resilience and sustainability of the country’s National Interconnected System.
In this manner, Colombia guarantees contracts for 15 years, which provides stability for investors as well as financial viability. This will also protect end users from unexpected price increases due to price volatility.
This first round will be accompanied by a detailed feasibility analysis, which will assess the impact on tariffs and the effects on the electricity market.
The country also aims to promote the diversification of its electricity production and grid, particularly in a system vulnerable to phenomena such as El Niño.
“This first round is much more than a call for proposals. We are committed to technologies that increase reliability, achieve zero emissions, and bolster the economy with new supply chains,” said Edwin Palma Egea, Colombia’s minister of mines and energy.
The first round will prioritise offshore wind energy, which has significant potential in the country and proven benefits in terms of system complementarity, job creation, and port investment.
The country will consider including geothermal energy and other clean energy sources in the round based on an analysis of their technical and economic feasibility.