The wind industry will invest nearly $2bn in Colombia following the award of 1077MW of capacity in last month’s tender, according to the Global Wind Energy Council (GWEC).
The trade association estimates onshore wind will account for $1.8bn of the total renewables investment of around $2.2bn resulting from the 1298MW tender.
The wind and solar projects, awarded 15-year power purchase agreement deals, will increase renewable capacity in Colombia from 1% today to 6%, said GWEC.
Colombia has a target of increasing renewables capacity to 17% by 2030.
“Wind power accounted for 83% of the allocated capacity and is therefore an industry with enormous potential to attract even more local investments and jobs to build Colombia’s economy while moving towards a more secure and low-carbon energy system”, said GWEC Latin American committee chairman Ramon Fiestas.
Local trade association SER Colombia however warned that new regulation must be put in place if the country is to achieve its renewables targets.
“Although we are undoubtedly thrilled with the results of the first renewable energy auction in Colombia, it is very important now that we continue to analyse the challenges that persist for the wind energy industry, which could potentially lead to roadblocks as we develop this emerging market,” said executive director German Corredor.
“From environmental licensing to grid connection, we must create regulatory frameworks that continue to boost the renewables industry by working with government authorities to build a comprehensive long-term plan in a post-auction market so that all winning projects can be efficiently integrated in the energy system,” he added.