Seven off-takers in Colombia's renewables auction to be given bank guarantees

The Colombian ministry of mines and energy said it has enabled seven power retailers that participated in last year’s long-term renewables auction to secure bank guarantees.

The seven companies were granted off-take contracts in the complementary round, which was organised to place 1,864.5 MWh per day that went unassigned in the first round of the October 2019 auction.

The Inter-American Development Bank (IADB) will be the guarantor assuming obligations of the seven companies, while Colombian development bank Bancoldex will be the guarantee issuer, the ministry said Wednesday.

The annual value of the guarantees surpasses COP 2.257 billion (USD 604,000/EUR 538.490).

These guarantees will give the companies easier access to financial products backed by second-tier banks and multilateral organisations, while also providing security to the winning project developers, according to the energy authority.

The names of the seven power companies were not disclosed.

These companies secured contracts to purchase the output of new wind and solar plants for COP 106.66/kWh in the complementary round.

The first round, held a day earlier, placed 1,298 MW of wind and solar capacity to 22 power companies for COP 95.65/kWh.

(COP 1,000 = USD 0.267/EUR 0.238)

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