Though Colombia offers dream conditions for the production of solar and wind energy due to high radiation sunlight, three high-altitude Andean mountain ranges and long stretches of coastline, potential investors have said that major infrastructure construction and community support are needed to move projects forward.
“This is the start of a revolution because it allows us to diversify our electric grid,” Energy Minister Maria Fernanda Suarez said in a statement on Tuesday, adding that because 70 percent of the country’s energy comes from hydropower it is vulnerable to droughts.
Seven generators won eight contracts – five for wind projects and three for solar, the energy ministry said. The companies cannot be named until they are officially informed of the auction results.
Twenty-two companies will commercialise electricity from these projects, the government said, adding that these contracts will contribute to solar, wind and biomass energy generation capacity of 2,200 megawatts by 2022.
President Ivan Duque’s office said in a separate statement that the contracts would bring in investment of about $2.2bn, close to 7.5 trillion Colombian pesos.
An initial auction for renewables contracts closed without any results in February after the government said the projects would have ended up in the hands of too few applicants because many bidders fell short of requirements.
A collective Latin American target of 70 percent renewable energy use by 2030 is meant to put Colombia and eight other countries in leadership roles in the run-up to December’s United Nations climate change summit in Chile, Suarez has said.