In the conference hall of the Ministry of Mines and Energy in Bogota, Minister Edwin Palma has just signed Resolution 40208. The sunlight outside the window was scorching, but he knew deeply that behind this seemingly abundant natural resource was the decades long "rainy season anxiety" of Colombia's power grid. This country, which heavily relies on hydropower, experiences a roller coaster ride in electricity prices whenever El Ni ñ o brings drought.

We cannot let energy supply continue to be left to fate, "Parma said bluntly at the press conference. This time, Colombia has decided not to passively wait, but to actively "hoard food" for the 2030 power grid through a 15 year electricity contract bidding. According to the resolution, all winning projects must be determined before July 31, 2026 and officially put into operation on January 1, 2030 to fill the potential power gap that may arise after 2027.

Unlike in the past, this bidding is no longer simply pursuing installed capacity, but focusing on "stability". For the first time, the bidding has elevated battery energy storage and hybrid energy projects to core products, aiming to use energy storage technology to "peak shaving and valley filling" and protect users from the suffering of extreme weather induced electricity price surges.

Energy storage enjoys exclusive evening peak dividends

In order to accurately match the demand of the power grid, Colombia has subdivided this bidding into four categories of "electricity products", which is considered the most refined design of this auction:

24/7 supply: As the base load power source of the power grid, it provides continuous and stable electricity.

Daytime solar energy (06:00-18:00): specifically designed for photovoltaic power plants, locking in the sunlight dividend during the day.

Mixed project (daytime+evening): covering from 8am to 9pm, encouraging mixed configurations of "photovoltaic+energy storage" or "wind power+energy storage" to ensure power supply after sunset.

Evening peak energy storage (18:00-22:00): This is the biggest highlight of this bidding. Specially designed for battery energy storage systems, the project is required to discharge to the grid during the evening peak hours when electricity is most scarce. This means that energy storage is no longer just an ancillary facility, but can generate long-term income as an independent market entity.

The bidding threshold is set at a minimum installed capacity of 5 megawatts (MW) per project, open to power generators, self generating users, and energy retailers. The government has not set a total capacity limit, demonstrating its great inclusiveness in investing in clean energy.

Opportunities for Chinese Enterprises

For Chinese photovoltaic, wind power, and energy storage companies seeking to go global, Colombia's bidding this time sends a clear policy positive signal.

Firstly, there is certainty. The 15 year long-term power purchase agreement (PPA) provides stable expected returns for project investment, greatly reducing market risks. The Colombian government has clearly stated that this tender is part of the 2035 long-term energy plan, and there will be new auction opportunities in the future, which means that the demand for medium - and long-term energy infrastructure will continue to exist.

Next is adaptability. Colombia, with up to 70% of its hydroelectric power, is extremely sensitive to climate drought and urgently needs photovoltaics and energy storage as "firefighting captains" during the dry season. China's cost advantage in photovoltaic module manufacturing and energy storage system integration perfectly matches Colombia's demand for low-cost, high reliability electricity.

Although the policy framework is clear, the local land permit, community negotiation, and grid access processes in Colombia are still quite complex. When Chinese companies participate in bidding, they need to pay special attention to the stricter admission standards for mixed projects in Resolution 40208, as well as the compliance requirements for cooperation with local distributors.Editor/Yang Meiling