Colombia is approaching a new renewable energy investment cycle with several key issues still to be addressed. The utility-scale market is regaining prominence after the latest auction, while developers and generators watch closely. whether there will be new processes that allow the allocation of capacity that was left out and provide an outlet for more hybrid projects.
The recent contracting of 995 MW of solar power and 100 MW of associated storage provided an initial indication of the market's potential direction. However, it also raised questions: some bids failed to secure contracts, some projects were not awarded, and some companies still have projects ready to compete.
Therefore, the potential continuation of the auctions is starting to focus the attention of the sector , especially if the next calls incorporate better conditions for batteries, time blocks and projects capable of providing energy beyond the hours of photovoltaic generation.
This new contracting scheme complements other tools available in the market. The Reliability Charge auction awarded approximately 1.8 GW of new renewable capacity, with contracts of up to 20 years , while long-term mechanisms seek to supplement this signal with new generation, backup power, and availability during critical hours.
The discussion takes on even greater significance because it coincides with a new leadership in the Colombian energy sector . The arrival of María Nohemí Arboleda at the Ministry of Mines and Energy , following her time at XM, and the appointment of Armando Cuello as Vice Minister of Energy , usher in a new institutional phase for a market awaiting clear guidelines on contracting, expansion, and reliability.
Utility scale is regaining ground and companies are making their moves
The auction also revealed a clear picture of the key players. Celsia, Enel Colombia, Isagen, and Empresas Públicas de Medellín (EPM) secured the majority of the awarded projects , with six initiatives totaling 995 MW of contracted solar capacity.
EPM, for example, has secured contracts for approximately 285 MW of solar power and is already analyzing energy storage as one of the next components of its strategy. The company is thus joining a competitive landscape that is beginning to extend beyond conventional photovoltaic generation.
Celsia showed another relevant sign. The company secured contracts for a portion of its hybrid proposal, but only awarded about 25% of the solar plus battery portfolio submitted to the process . This leaves approximately three-quarters of that portfolio still available for commercial sale , whether through bilateral agreements, new contracting mechanisms, or potential future auctions.
The question remains what will happen to the capacity that wasn't awarded. Product 1 wasn't implemented, and Product 4, designed to serve a critical period between 6:00 PM and 10:00 PM, wasn't awarded —precisely a time slot where storage could be strategic given the drop in solar generation.
This outcome fuels the debate about whether the contract design requires adjustments and whether a future call for tenders could recover some of that offer , providing better signals for technologies capable of shifting energy to nighttime hours.
More than 5 GW of renewables and a new market for BESS
While discussions continue regarding the next utility-scale contracting cycle, Colombia has already surpassed 5 GW of renewable capacity within its 6GW Plan . Of that volume, 3,843.15 MW are already operational, and another 1,237.12 MW remain in testing , according to the update from the Mining and Energy Planning Unit (UPME) as of August 20, 2026.
Solar energy represents 5014.73 MW, equivalent to 98.7% of the total accounted for , divided into centralized generation and self-generation, while wind power reaches only 41 MW installed and small hydroelectric plants add 24.54 MW.
But the immediate potential of the Colombian market extends far beyond the capacity that has already entered operation or completed testing. Another 5,086 MW of renewable energy projects remain under development without financial closure, according to SER Colombia , forming an expansion portfolio that is still not guaranteed.
In addition, there are 1043 MW about to start construction , corresponding to 20 projects identified to begin construction during 2026, and another 227 MW currently under construction , with planned entry between 2027 and 2028.
That pipeline of projects continues to be held up or delayed by transmission, permits, prior consultations, grid connection, financing, and commercial closure. Wind energy clearly illustrates this gap between potential in La Guajira and what is actually being implemented.
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Volume is especially relevant given the sustained growth in electricity demand and the risk of energy shortages if new capacity is not added , a scenario that could worsen under unfavorable hydrological conditions associated with El Niño.
On the other hand, this increases the need for storage to shift energy to other times, provide flexibility and reinforce reliability , just as the global cost of four-hour BESS fell to $78 per MWh .
The country is also making progress in defining a specific market for storage , establishing different forms of participation of these assets within the electricity system.
The regulation already contemplates three ways of participating in storage systems: SAEB as Network Assets, intended for transmission and distribution; Independent SAEB of at least 5 MW, enabled to market energy and complementary services; and Hybrid Generation Resources, which integrate batteries with solar or wind power plants under the same commercial boundary.
The question now is how these regulatory schemes translate into bankable projects, new calls for proposals and BESS capacity actually installed, and what economic signals investors will find to deploy batteries on a larger scale.
From renewable growth to the next investment cycle
The next renewable energy cycle will require addressing more complex issues: contracting, reliability, storage, transmission, and signals for new investment. A new auction could become one of the mechanisms capable of organizing part of that pipeline, but its eventual design will be crucial.
The role of the new government will also be at stake. The first decisions made by the new authorities regarding regulation, hiring, and expansion will reveal how much space private capital will have in the next cycle.
These discussions will directly impact the Future Energy Summit (FES) Colombia , which will take place on October 1st in Bogotá at the JW Marriott Hotel and will bring together the main developers, generators, technology providers and authorities in the sector.
This scenario will bring together utilities, developers, manufacturers, technology providers, infrastructure companies, and financial players who are already looking to position themselves for the next Colombian investment cycle.
Among the participants will be Isagen, CATL, Terpel, Sungrow, SolaX Power, JinkoSolar, GameChange Solar, ISA Energía, Promigas, PV Hardware and Atlas Renewable Energy.
In addition, other companies such as Marsh, Nexans, Patria Investments, AFRY, Atera, Skysense, Alurack, TCL, CTG Latam, Vatia, Gotion, Yingli Solar, JA Solar and ERCO , among others, are positioned.
Energy storage will play a particularly important role there. ERCO, for example, plans to develop between 600 and 700 MWh of BESS in the coming years , in a market where the company has also been making progress on projects related to the recent contracting process.
Towards the end, the conversation will move directly to public policy with a panel discussion with government representatives , where Colombia's energy priorities for 2030 will be discussed.
The main discussions at FES Colombia will be aligned with the challenges the market is currently facing: how to unlock the next cycle of utility-scale solar energy, respond to the growth in demand and ensure reliability, as well as generate new investment signals for renewables.
Storage and hybrid projects will also occupy a central place, along with self-generation for large consumers, industrial competitiveness, technology, and the strategies needed to support the evolution of the Colombian electricity system.
Given this scenario, Colombia enters the next cycle with projects, players, and investor interest, but still with pending decisions regarding contracting, connectivity, storage, and financing . The evolution of the auctions, the new rules for BESS, and the initial decisions of the new government will determine what portion of the pipeline ultimately translates into new operational capacity.