Colombia awarded 31 solar and wind projects for 1792.9 MW of new capacity in the fifth Firm Energy Obligations (OEF) auction of the Reliability Charge, which represents almost 45% of all the power assigned in the call (total of 4069.7 MW including hydroelectric and thermal).
A total of 85 power generation plants participated, of which 77 received OEF allocations , enough to cover the target demand established by the regulations. Among those awarded are 15 entirely new plants , in addition to projects with previous allocations that are not yet operational, existing assets, and plants undergoing expansion.
The result for renewable energy is divided between 29 solar projects for 1546.9 MW (19 new plants with and without OEF + 10 existing ones) and two new wind farms for 246 MW , with supply commitments that in some cases extend until 2049.
Beyond the volume awarded in MW, the mechanism allocated 143.01 GWh/day, of which solar generation will contribute 7.7% of the total (11.06 GWh/day), while wind power achieved an allocation of only 76.35 MWh/day , that is, 0.1% .
In economic terms, the auction closed with two price signals defined by the Energy and Gas Regulatory Commission (CREG) based on variable generation costs:
- For the group of plants with higher variable prices (PCVS) it was 16.4 USD/MWh.
- For the group of plants with lower variable prices (PCVI) it was 22 USD/MWh.
When are the winners announced?
The key takeaway for the market is that Colombia is accelerating the incorporation of renewable energy at a time when the effective expansion of the system is lagging. XM ended 2025 with 21,028.56 MW of net effective capacity , but only 380.26 MW entered commercial operation throughout the year, despite the existence of 1,426 MW corresponding to 104 projects in initial testing .
“Many said this auction would fail, but today we can tell the country that it was a complete success, with new projects, more competition and nearly $16 billion in investment,” said the Minister of Mines and Energy, Edwin Palma, in a statement.
Furthermore, the result comes as Colombia faces growing signs of strain on the reliability of its electricity system. The Mining and Energy Planning Unit (UPME) projects that the country will need to expand its installed capacity to between 34.7 GW and 37.7 GW by 2037 , with solar and wind power increasing from approximately 2% currently to a share of between 37% and 45% of the energy mix .
However, the same entity warned of a first simultaneous sign of reliability deficit from September 2026 , in addition to the impact that any new delay in critical transmission infrastructure such as Collector I and II would have, essential to evacuate new renewable generation.
In parallel, the government has already opened a new avenue to diversify the expansion. It recently enabled the participation of battery energy storage systems (BESS) in long-term energy auctions.
Under that scheme, a new process with 15-year contracts starting in 2030 has already been launched, open to generators, self-generators and marketers, which must be implemented before July 31, 2026 .
