The long-term auction concluded with 995 MW of solar generation and 100 MW of storage awarded through 15-year contracts, with supply beginning on January 1, 2030. Product 2 allocated 725 MW of solar power, and Product 3 incorporated 270 MW of solar plants along with 100 MW of battery storage, with prices up to $315.87 per kWh . In contrast, Product 1—which considered start dates in 2030 and 2035—was not implemented due to a lack of bidders, while Product 4 remained unallocated after exceeding the regulatory competition limit.
Together, both segments accounted for 4,564 MWh-day contracted . The largest volume corresponded to Product 2, which allocated 4,174 MWh-day at a weighted average price of $246.13 per kWh . Product 3, designed to incorporate storage, awarded another 390 MWh-day at $315.87 per kWh . The published prices correspond to the closing of each auction and do not include the Actual Equivalent Energy Cost of the Reliability Charge.
Solar energy contracts for Product 2 will be backed by 15-year agreements. According to the Ministry of Mines and Energy, the production will serve more than 800,000 families and cover approximately 3% of the country's regulated demand .
In the case of Product 3, the main new feature was the selection of 100 MW of storage capacity , accompanied by 270 MW of photovoltaic plant capacity. The energy contracted at this stage would be enough to supply more than 67,000 homes during peak demand hours , according to official estimates.
“This is a milestone for the country as it is the first long-term contracting mechanism that incorporates these hybrid technologies, multiplying the current storage capacity by 1000%,” says Edwin Palma, Minister of Mines and Energy .
Why products 1 and 4 were left without contracts
Although the mechanism included four products, only two received awards . Product 1 was never implemented, while Product 4 reached the auction stage but ended without any awards.
For Product 1, with obligations beginning in 2030 , 16 buyers and one seller were enabled. For the variant with a start date of 2035, no interested buyers or sellers registered.
After evaluating the competitive conditions, the Ministry of Mines and Energy instructed the Colombian Mercantile Exchange not to proceed with that segment. The process did not have the three competitors required to maintain a plurality of bidders, dynamic competition, and efficient price formation.
The only vendor authorized for Product 1 in 2030 had reported a maximum daily sales energy of 501 MWh/day . For the 2035 segment, the reported availability was zero.
The situation for Product 4 was different. In that case, there were valid buy and sell offers, and the optimization algorithm found a feasible solution. However, the result exceeded the 40% regulatory competition limit established by CREG Resolution 101 109 of 2026.
The Mercantile Exchange determined that this was the sole reason for the non-award. Therefore, the product did not remain vacant due to a lack of commercial interest or a technical failure in the process, but rather because the resulting solution did not meet the concentration requirements stipulated by the regulations.
Product 4 had registered nine buyers and four sellers , with a reported maximum daily energy sales of only 655 MWh/day . The limited depth on the supply side limited the possibility of achieving a result compatible with competition rules.
Prices: batteries closed 28.3% above solar.
The weighted average price of Product 2 was $246.13 per kWh , while Product 3 closed at $315.87 per kWh . The difference was $69.74 per kWh , equivalent to 28.3%.
The gap arises because the products did not offer the same features. Product 2 compensated for solar generation under long-term contracts, while Product 3 incorporated storage.
In Product 2, the curve published by the Mercantile Exchange shows that the sales offer was organized in different price tiers. The crossover point occurred around the 4,174 MWh-day finally awarded , determining the average value of $246.13 per kWh.
Product 3 had a narrower structure. The seller's offer consisted of three tiers, but the available quantity was considerably lower than the buyer's interest. The allocation was concentrated at 390 MWh/day , with a closing price of $315.87 per kWh.
Few sellers facing a high buying intent
The auction had 23 qualified participants , including generators, marketers, and distribution companies. The list included Celsia Colombia, Empresas Públicas de Medellín, Enel Colombia, Caribemar de la Costa, Central Hidroeléctrica de Caldas, ERCO Generación, Vatia, Terpel Energía, and other market players.
However, participation was unevenly distributed. Product 2 registered six buyers and seven sellers . Product 3 had ten buyers and only three sellers, while Product 4 brought together nine buyers and four sellers.
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The number of qualified bidders does not necessarily equate to the number of bids actually submitted, but it does allow us to observe the initial structure of the process. For products 3 and 4, the small number of sellers anticipated a scenario of less competition and lower purchasing pressure.
Prior to the final receipt of bids, the sellers communicated a maximum daily sales energy of 5146 MWh-day for Product 2 , 2234 MWh-day for Product 3 and 655 MWh-day for Product 4. These values were for informational purposes and were subject to the limits and validations of the mechanism.
The final bids confirmed the difference between supply and demand. For Product 2, buyers requested 8274 MWh/day , compared to 5047 MWh/day offered by sellers . The buy-sell ratio was 1.64 times.
The auction awarded 4,174 MWh/day, leaving 4,100 MWh/day of demand unallocated . On the seller side, another 873 MWh/day did not secure contracts.
The imbalance was most pronounced in Product 3. Buyers submitted bids for 9421 MWh-day , while sellers offered only 747 MWh-day . Demand exceeded supply by 12.6 times .
Only 390 MWh/day were allocated. Consequently, 9,031 MWh/day remained unallocated on the buyer side and 357.7 MWh/day on the seller side. The mechanism contracted just over 4% of the volume demanded in that segment.
The Ministry of Mines and Energy also reported that market participants expressed interest in contracting more than 15,400 MWh/day of battery storage . This figure reinforces the expectation that the next government will evaluate new tenders for energy storage projects.
From awarding to building: the challenge for the new administration
Once the auction is over, the focus will shift from contract design to execution. Projects will need to achieve financial closure, complete environmental and social permitting, ensure connectivity, progress with construction, and meet their operational start dates .
The process is taking place during the transition between administrations. On August 7 , Abelardo de la Espriella will assume the Presidency of Colombia, replacing Gustavo Petro.
That same day, María Nohemí Arboleda is scheduled to take office as Minister of Mines and Energy. The electrical engineer comes from the general management of XM, the company responsible for operating the National Interconnected System and managing the Wholesale Energy Market.
The new minister will inherit the monitoring of contracts and the task of converting the selected capacity into operational projects. Connectivity, bankability, licensing, and adherence to timelines will determine how much of the awarded capacity will actually reach the system .
“We have set in motion nearly 11 GW of new capacity between projects in operation, under construction and awarded so that the next Government can guarantee their entry into operation and ensure the country's electricity supply for the next decade,” says current Minister Palma.
The official believes the next administration must maintain the necessary conditions to materialize the investments. “ The next government has to do the same as we did: ensure that the projects and firm energy obligations awarded in past auctions have the conditions and the political climate to guarantee the investments ,” he says.
Palma maintains that the outgoing administration is leaving behind tools to continue holding procurement processes. “ We have left the legal and regulatory framework so that the incoming government, if it so chooses, can call for auctions the very next day, on August 8th, 9th, or 10th, ” he states.
The government estimates that it is leaving approximately 11 GW of capacity in operation, under construction, and awarded projects . This portfolio includes the results of this auction and capacity allocated through previous mechanisms.
Palma noted that 4.5 GW of solar energy were allocated in the 2024 reliability charge auction. “ In the reliability charge auction we held this year, 2026, we awarded an additional 1.7 GW of solar energy ,” the official added.
The execution of awarded contracts, the development of storage, competition in upcoming calls for tenders, and the decisions of the new administration will be part of the debate at Future Energy Summit Colombia , which will take place on October 1 in Bogotá .
The meeting will bring together public and private actors to address a central issue for the electricity system: Colombia has already contracted 995 MW of solar power and 100 MW of battery storage, but the final outcome will depend on that capacity securing financing, connection, and becoming operational .