The problem with the phenomenon of The boy that faces Colombiais that it generates a situation of stress in the market due to the reduction in energy supply due to the absence of rain and the increase in energy demand due to high temperatures.
Taking into account that the country’s energy matrix is mainly hydroelectric, this is not enough to meet demand.
To respond to this problem, in the last Reliability Charge Auction for 2027/2028, 33 generation plants were assigned, which represents an inclusion in the system of 4,489 new MW, of which 4,441 MW are solar and 48 MW thermal with biomass, biogas technology and repowering of an existing plant.
Although the participation of renewable energies in the auction was very good compared to the previous one held in 2019 where 1,398 MW of wind and solar were assigned, experts point out that solar projects must be complemented with storage systems to provide “firm energy to the system.” .
One of them is Pablo Corredor, specialist in renewable energies and manager of the PHC firm, who shares his vision in dialogue with this medium.
“According to the estimated demand for the period 27/28, the firm energy that would be completed with the reliability charge auction is very tight. If demand continues to grow as it has been doing in recent months, the scenario is quite pessimistic and we will need more firm energy,” he explains.
Thus, The expert calls on the government to launch a new auction as quickly as possible: “Solar energy projects must be complemented with storage. For this, a new auction is necessary relatively quickly, this year or before the first half of 2025. There are no concrete signs that it will be carried forward, “but there are indications that it will be necessary”.
In addition, Corredor suggests a series of measures that would help the Colombian government combat the energy deficit it faces.
“We must carry out a structural and systemic analysis of the entire market analyzing how it behaves in normal and crisis scenarios. Unfortunately, regulation has given signals that have caused the contract market to be in deficit. Being in deficit, it is not easy for everyone to cover themselves and not be exposed to the stock market.”
According to the specialist, the results of the reliability charge auction and the measure to prohibit payment of what was contracted, making contracts more rigid, further reduced the supply of contracts.
A solution to this problem raised by Corredor is the implementation of hybrid markets adapted to the Colombian reality. For it, Working on the regulation of complementary services is an important point. It also proposes approving other standardized contract negotiation platforms.
On the other hand, he suggests reviewing the distribution expansion criteria: “The network must be optimized given the intermittent sources. UPME has focused a lot on connecting projects but not enough progress has been made in the expansion of the network itself. A very open view is needed that encompasses financial, economic and environmental points of view, leaving political ideology aside.”
In turn, the specialist assures that it is necessary promote much more competition at the wholesale and retail market level through affordable rates. As for the latter, he affirms that it is super important to eliminate the barriers that stop small-scale generation and distributed generation.
“To move forward you have to rebuild trust. It is not about changing everything, but rather doing a detailed analysis to make the necessary adjustments at the appropriate times,” she concludes.
