Developers with renewable energy projects of over 5MW that can be online by 1 January 2022 are invited to bid.
The ministry of mines and energy has increased the contract length from the originally proposed 12 years in February’s tender, up to 15 years.
Another change will see the energy buyers and traders pay the fixed contracted amount to the generators, instead of paying for what was consumed.
These changes are hoped to increase certainty for the generators, the ministry said. Generators will also be required to provide the energy during three set time blocks over a 24-hour period, so the traders can ensure a constant supply.
The different blocks will also match the characteristics of the different renewable generators. For example, there will be more wind available in the evenings.
This will allow Colombia to procure a mix of generation types.
Colombia’s energy regulator (CREG) will set a maximum price cap on the contracts ahead of the auction, while the ministry will decide on the amount to be auctioned after receiving offers from the market.
The country’s first scheduled clean energy auction in February passed without awarding any projects deals as the results would have contravened the country’s anti-trust laws.
However, energy minister María Fernanda Suárez was buoyed by the low prices which had been submitted during the aborted process.