The new process for allocating OEF, through the auction for the Reliability Charge (CxC) , continues to generate alerts within the Colombian electricity sector .
Although it incorporates regulatory changes, the experts consulted identify technical risks, unclear regulatory signals, and financial imbalances, which could translate into a lack of confidence among investors interested in participating with new plants. "The novelty of the auction is that it seems to acknowledge the difficulties that projects awarded OEF (Operational Energy Funding) have faced in reaching actual commercial operation, as it incorporates, among other things, an incentive for more accelerated allocation of transport capacity," warned Juanita Villanueva , a lawyer specializing in mining and energy law. However, the executive maintained that there is no evidence that this measure actually solves the project development timelines and overlooks the fact that the investment burden in guarantees remains very high.
Even with a new auction, the problem persists. The new mechanism, defined by CREG Resolution 101 079 of 2025, does not resolve the structural problems inherited from the calls for bids under CREG Resolutions 101 024 of 2022 and 101 034A of 2022. "The evidence we have today is that at the end of 2025, we still had 30 plants with OEF (Operational Energy Efficiency) awards from the last auction that are still under construction, which demonstrates that calling for new auctions without the necessary regulatory improvements does not guarantee the expected reliability ," Villanueva added.
Vera Energy recommended postponing the Colombian Reliability Charge auction due to a lack of investment conditions.Natalia García , CEO of Enermant, with over 18 years of experience and an analyst of more than 9 GW of renewable energy projects, pointed out that the current rules could lead to unfair penalties for investors . "In the past, many investors have faced the execution of guarantees for having submitted projects at insufficient stages of development to meet the timelines required in the auctions."
"The problem is that investors, who are unaware of the market's specifics and the development, construction, and commissioning timelines, are guided by the requirements demanded to participate in the mechanisms," he noted.
The mechanism is not generating minimum conditions for projects to comply with the OEF when the system requires it.
Furthermore, it should be noted that CREG Resolution 101 066 of 2025 and CREG Resolution 101 069 of 2025 introduce substantial modifications to the methodology for calculating the scarcity price and the stock exchange transaction price (PTB). Consequently, generators that simultaneously hold bilateral contracts and awarded OEFs could be forced to "compensate" the difference between their energy sales through contracts or the exchange (which guarantees project financing), the PTB, and their Scarcity Price (PEI or PES) with cash from their own flow (money they received from their bilateral contracts, not the exchange). García warned that this could create an economic imbalance for potential participants. In parallel, the use of contract menus for both existing and new players creates a competitive gap that distorts market signals. "This can favor some players over others without a clear technical basis," the expert stated. Claudia Ballesteros , a lawyer with over 12 years of experience in electricity regulation and markets, questioned why the CREG (Energy and Gas Regulatory Commission) has not published technical studies validating the need for this auction. "There is no evidence that this call for bids will strengthen the system's reliability," she affirmed. Ballesteros also warned about the lack of institutional coordination: The Ministry and the CREG have issued regulations.This causes both entities to overlap in their responsibilities.
This has resulted in some public policy and regulatory measures being issued without technical rigor.
The perception that the changes to the mechanism's design are not geared towards incorporating the improvement opportunities identified in previous auctions, without guaranteeing the reliability of the electrical system as the main objective of the Reliability Charge calls, is shared by the three specialists. "Colombia needs reliability based on viable projects of any technology."This government has worked hard to have methodologies that allow streamlining processes such as LASolar, LAEolica and the express connection processes for projects awarded with OEF, however the question is: will the time be enough for the new plants that do not even have a connection point?" said García.
"The system needs a greater supply of firm energy and to implement the lessons learned from previous auctions. It is not enough to convene mechanisms and enforce guarantees for breaches; effective support from all stakeholders (government, entities, communities, agents, demand, and others) is required to ensure that projects actually come online and the power doesn't go out," the three specialists concluded.