As part of EDPR growth strategy, Colombia has become the 14th country in EDPR’s portfolio
EDPR first step in Colombia generation market is with two wind Project of 492MW located in La Guajira, Beta and Alpha developed by Renovatio. Successful participation in the Long term contract auction allocation reached 1.704Gwh/y, meaning 46% of the total allocated energy and 38% in terms of installed capacity, equivalent to supply 823.000 homes and CO2 reduction of 1Mton/y.
EDPR Colombia in numbers:
Areas of business
EOLOS ENERGIA SAS E.S.P. and VIENTOS DEL NORTE SAS E.S.P. are power generation companies that trade their energy through the Wholesale Power Market – MEM1 with wind generation plants, selling its energy through the contracts that were awarded to them in the second public auction of non-conventional renewable energies carried out by the National Government in 2019 (SCLP02), bilateral contracts with others MEM agents and finally the rest of their surpluses through sales in the Spot Market of the energy exchange.
Wholesale Power Market
In the Law 142 of 1994 a competitive wholesale energy market was created in which generators, traders and unregulated consumers participated. The determination of the price in the Energy Exchange is rule by the matching between supply and demand within a liberalized and competitive market. Likewise, the operation and administration of the market is carried out by XM Compañía Expertos en Mercado S.A. E.S.P., which, among others, has the functions of Administrator of the Commercial Exchange System – ASIC*.
EOLOS ENERGIA SAS E.S.P. y VIENTOS DEL NORTE SAS E.S.P., as power generation companies from non-conventional renewable energy sources, they participate in the wholesale energy market trading their energy in accordance with the with the legal regulation established in Colombia.
The companies, as participants of the wholesale market mentioned above, freely negotiate supply contracts with other market agents such as traders and other generators or by selling their wind energy production on the Spot Market in accordance with current market rules.
A part of the purchase and sale of our power generation comes from the transactions carried out daily on the Energy Exchange.
Long-term Bilateral Contracts between agents
Most of our sales come from the award of the second public auction of unconventional renewable energies carried out by the National Government in 2019 (SCLP02), which opened the doors to the diversification of the Colombian power generation matrix, allowing that unconventional renewable generators to adopt long-term agreements with traders to supply their energy demand.
The purchase and sale of energy can also come from private negotiations with:
- Generators that buy or sell energy to back up contracts.
- Purchase and sale of energy through contracts in the unregulated market.
The price of energy in the contracts is established by mutual agreement between the parties through bilateral negotiations.
All long-term bilateral contracts, by virtue of current regulations, must be registered with the Administrator of the Commercial Exchange System – ASIC*, and for this the following requirements must be met:
- That the contracting parties are previously registered as market agents with the ASIC.
- Present the guarantees defined by the CREG or make advance payments, both the trader and the generator, from the date of initiation of the contract.
- Register the information of long-term energy contracts, whether it is a new contract or a modification, prior to the start of the contract. Read: (Resolution CREG-003/98).
- For the termination of contracts, the guidelines established in each of the contracts signed by the parties must be considered.