The Ministry of Mines and Energy, led by Edwin Palma, published a resolution calling for long-term electricity contract auctions. The measure aims to secure supply from 2030, promote renewables and reduce price volatility. Contracts will last 15 years under the 'pay as bid' scheme.
The Ministry of Mines and Energy issued a resolution to call for long-term clean energy auctions, aiming to attract investment and diversify the country's energy matrix.
The initiative addresses the gap between contracted energy and projected demand from 2027 onward, ensuring system reliability and shielding users from sharp price hikes. Contracts, lasting 15 years, will start on January 1, 2030, with some options extending to 2035.
It uses a 'pay as bid' mechanism, where participants receive their offered price. Generators, self-generators, sellers, and traders as buyers can participate, meeting technical, legal, and financial requirements. There are four delivery profiles: constant energy, daytime solar, day-afternoon blocks, and nighttime peak.
Prices have caps: maximum purchase and minimum sale to filter extreme bids. They will adjust with the Producer Price Index (IPP), preserving real value. Awarding prioritizes economic efficiency and, in ties, order of arrival.
