Colombia Grants 15-Year Agreements in Nation's Initial Online Venture
Colombia Launches First Offshore Wind Farm Bidding Round
Colombia's Ministry of Mines and Energy has initiated the country's first offshore wind farm bidding round, marking a significant step towards the diversification of its electricity production and the development of renewable energy sources.
The bidding round, which operates under a Contract for Differences (CfD) scheme, guarantees winning strike prices for a period of 15 years. This 15-year price guarantee aims to provide stability for investors and financial viability for new technologies while reducing energy price volatility.
In March 2025, the Colombian government received nominations for 69 sites from companies that pre-qualified last year to participate in the round. The round involves a competitive allocation process to ensure price efficiency, with distinct technical criteria set for each technology. Other criteria will be evaluated on a non-competitive basis.
The round is a strategic commitment to Colombia's energy future, as stated by the Minister of Mines and Energy, Edwin Palma Egea. He emphasised that the round is aimed at promoting the diversification of electricity production, especially in a system vulnerable to phenomena such as El Niño. The round also aims to promote technologies that strengthen the resilience and sustainability of the National Interconnected System.
Each developer can be awarded a maximum of two sites in the bidding round. The round is designed to protect end users from unexpected price increases and reduce energy price volatility. The government guarantees prices for 15 years to provide stability for investors and financial viability for new technologies.
A detailed feasibility analysis will accompany the round, assessing the impact on tariffs and the effects on the electricity market. The analysis will ensure that the round is designed to promote the long-term sustainability and viability of the offshore wind industry in Colombia.
This round marks a significant regulatory milestone for Colombia, signaling its entry into offshore wind with a structured mechanism to attract investment and develop capacity. The round is a testament to Colombia's commitment to a sustainable and resilient energy future.
[1] Colombia's Ministry of Mines and Energy announces first offshore wind farm bidding round [2] Colombia's offshore wind farm bidding round to receive 69 site nominations [3] Colombia's offshore wind farm bidding round to promote energy price stability [4] Colombia's offshore wind farm bidding round aims to reduce energy price volatility [5] Colombia's offshore wind farm bidding round to promote resilience and sustainability in the National Interconnected System
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