Enel bags contracts for 1.2 GW of solar in Colombia's auction

Latin American utility Enel Colombia announced on Friday that it has been awarded firm energy obligations in Colombia’s latest reliability charge auction, taking on the responsibility to supply 856 GWh of electricity per year from its upcoming solar farms in the country.

The Bogota-based group, part of Italian utility Enel SpA (BIT:ENEL), said that its six solar projects totalling 1,215 MW had been selected to supply electricity for a year from December 2027 onwards. These are the 90-MW Fundacion, currently under construction in the Colombian department of Magdalena; the 180-MW Guayepo III, co-developed with Ingenostrum Colombia; the 180-MW Atlantico; the 360-MW Sahagun; the 90-MW Valledupar, and the 315-MW Chinu.

The Fundacion solar farm, which produced first power in August 2023, also benefits from a power purchase agreement (PPA) awarded in Colombia’s October 2021 renewable energy auction. This plant is expected to reach commercial operation during the first half of 2024.

Construction of the Guayepo III solar farm in the Atlantico department is expected to begin in the coming months, Enel Colombia said.

The reliability charge auction on Thursday awarded firm energy obligations (OEFs) to 4,441 MW of new solar power and 48 MW of thermal power plants, as well as existing hydro and thermal.

The auction’s closing price was USD 18.2 (EUR 16.90) per MWh, Colombian grid operator and the auction administrator XM announced on Friday.

With the OEFs, power generators take on the obligation to provide firm energy and continuous service to the system to ensure there is enough electricity circulating during critical periods, such as El Nino droughts.

The supplies under the latest reliability charge auction are due to begin on December 1, 2027 and finalise on November 30, 2028.

(USD 1.0 = EUR 0.929)

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