August 9 (Renewables Now) - Colombia's national mining and energy planning unit UPME on Wednesday relaunched its renewable energy auction, in a repeat attempt to broker long-term contracts between power generators and off-takers.
New tender documents and schedule have been released. Participants now have until September 6 to place their bids. The list of participants will be announced the following day and after a month for adjusting offers and providing final documents, the auction will take place on October 22, 2019. On this day, the ceiling price and the maximum amount of energy to be contracted will be revealed, along with the winning bids.
Under the amended rules, new generation projects of 5 MW and above are eligible to bid for 15-year power purchase agreements (PPAs). The contracts will be denominated in Colombian pesos with adjustments tied to the producer price index (PPI).
The UPME also published a draft of the long-term contract confirming that it will be of the so-called “ take-or-pay” type. This means that off-takers have to pay generators a fixed contracted amount regardless of whether or not the electricity is consumed.