Colombia’s Ministry of Mines and Energy has awarded contracts for around 270 MW of new solar tied to 100 MW of battery energy storage in the first round of its long-term clean energy auction.

The ministry says the auction awarded 390 MWh per day under the hybrid product, which combines solar photovoltaic generation with battery energy storage. The contracts require electricity delivery in two time blocks: from 8 a.m. to 6 p.m., primarily from solar generation, and from 6 p.m. to 10 p.m., when batteries shift solar output into the evening peak.

The awarded capacity increases Colombia’s installed battery storage capacity by about 1,000%, the ministry added, providing enough contracted energy to meet peak-hour demand from more than 67,000 households.

The auction cleared at COP 315.87 ($0.099)/kWh. The ministry said the price is less than 30% of electricity prices that can occur in the spot market during drought periods.

“The results obtained on this first day of the auction mark a milestone for the country’s just energy transition,” said Minister of Mines and Energy Edwin Palma. “Multiplying energy storage capacity and incorporating more solar generation into the energy mix reaffirms the government’s commitment to decarbonization and electricity system reliability.”

The contracts have a 15-year term, with supply obligations beginning Jan. 1, 2030. The auction uses a pay-as-contracted structure, with sellers bidding prices in Colombian pesos per kilowatt-hour, plus the applicable reliability charge component.

A second auction round took place yesterday (July 29), covering standalone solar photovoltaic projects and new or existing plants equipped with battery storage to supply electricity between 6 p.m. and 10 p.m.

Final audited results are expected after all auction stages conclude later today (July 30).