Colombia Awards 995 MW of Solar in Clean Auction That Integrates Batteries for the First Time

Colombia closed on July 31 its clean energy auction with the award of 995 megawatts (MW) in new solar parks and approximately 100 MW in battery energy storage systems (BESS), the first time the country has integrated storage into this contracting mechanism.

The auction, held over two sessions on July 30 and 31, assigns 15-year power purchase agreements with a supply obligation beginning in 2030, under a pay-as-contracted scheme that includes a Reliability Charge component. The mechanism stems from Decree 1091 of 2025, which requires electricity retailers to source between 8% and 10% of their demand from clean sources. The awarded energy represents approximately 3% of the country's regulated demand, equivalent to the consumption of more than 800,000 Colombian households, according to El Tiempo. For the region, the outcome confirms that auctions with integrated storage are viable as an energy policy instrument; Colombia joins the still-small group of countries that incorporate batteries from the design stage of the mechanism itself.

In the first session, 270 MW of solar paired with the 100 MW of batteries were awarded, at a closing price of 315.87 Colombian pesos per kilowatt-hour (approximately USD 0.099), as reported by pv magazine. The second session added 725 MW of additional solar; the Ministry of Mines and Energy has not yet detailed the closing prices for that tranche or the winning companies. The Bolsa Mercantil de Colombia, which acted as auctioneer, will deliver the final audited results once all stages of the process are complete. The Minister of Mines and Energy, Edwin Palma, noted that approximately 7 gigawatts of projects are ready to serve as the foundation for the country's electricity supply over the next decade. Colombia already has 4.58 GW of installed solar capacity.

The Ministry also requested that the Energy and Gas Regulatory Commission (CREG) hold an urgent reconfiguration auction to reinforce system reliability. With the 995 MW awarded, total contracted capacity across plants in operation, under construction, and assigned in this auction reaches approximately 11,000 MW. The immediate challenge, Palma warned, is ensuring that the winning projects reach commercial operation on schedule.

This article was drafted with artificial intelligence assistance from verified sources and reviewed by a human editor before publication.