Auction adds 4,069 MW to Colombia power system from December 2026

The firm energy obligations auction held on May 22, 2026, assigned 4,069.7 MW of new capacity to Colombia's national grid starting in December 2026.

XM, the electricity market operator, announced the results on May 23. Eighty-five plants participated and 77 received assignments, including 15 new plants and one existing plant with works.

The capacity comes mainly from thermal plants with 2,276.8 MW, followed by solar with 1,546.9 MW and wind with 246 MW. Leading regions are Magdalena with 2,336 MW, Santander with 521.8 MW, and Guajira and Cesar with 426 MW.

Closing prices were US$16.4/MWh for plants with higher variable costs and US$22/MWh for lower ones, per Creg resolution 101 066 of 2024. The auction was called by Creg through Resolution 101 079 of 2025.

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Colombian Energy Minister Edwin Palma announces Air-e financial crisis measures and El Niño preparations at a press conference.
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Energy Minister Palma advances Air-e crisis measures amid El Niño threat

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Colombia’s Mines and Energy Minister Edwin Palma defended his handling of the Air-e financial crisis—ongoing since early 2026 with $1.6 trillion in debts—and announced key steps: a targeted $8/kWh surcharge on high-income users, a Creg proposal for more energy contracting ahead of El Niño, and calls for structural reforms in the Caribbean region's electricity sector.

The Ministry of Mines and Energy launched the long-term clean energy contracting auction 2026 in coordination with the Bolsa Mercantil de Colombia.

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Colombia's electricity demand rose 6.07% in April 2026 compared to the same month last year, reaching 7,217.2 gigawatt-hours, according to data from XM.

Colgas and Ladrillera Santafé launched operations of a solar park in Soacha, Cundinamarca, with a $16 billion peso investment. The project generates 5.4 MWp and aims to cut the brick factory's energy costs by up to 30%, avoiding at least 1,400 tons of CO2 emissions annually.

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In its latest auction, Colombia's Ministry of Hacienda placed 900 billion pesos in short-term Treasury titles (TCO) maturing April 20, 2027, at a cutoff rate of 13.450%—slightly lower than the prior auction's 13.65%. Bids totaled 1.6 trillion pesos, or 1.7 times the amount offered, signaling robust demand amid efforts to develop the domestic capital market.

Fiesp and CNI requested to join as amicus curiae in a TCU case over the energy auction that contracted R$ 515 billion. The entities oppose the bidding due to rising costs, low discounts and prioritization of polluting sources.

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