IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2021-01-61.html
   My bibliography  Save this article

The First Auction of Non-Conventional Renewable Energy in Colombia: Results and Perspectives

Author

Listed:
  • Ricardo Moreno

    (Department of Energy and Mechanical, Universidad Aut noma de Occidente, Cali, Colombia,)

  • Diego Larrahondo

    (Electrical and Environmental Engineer, Universidad Aut noma de Occidente, Cali, Colombia)

Abstract

In Colombia, as a historic milestone, the first long-term auction of non-conventional renewable sources was held in 2019, with the aim of the National Government to take a major step in the energy transition policy. The auction organized by the Ministerio de Minas y Energ a (MME) defined the objectives, rules and type of auction. The results of the first auction indicate that eight project were selected by a pay-as-bid auction scheme, five wind and three solar projects will imitate operations at 2021accounting for 1298.8 MW. This paper presents a review of auction in various countries of South America in order to compare final prices for technology. Finally, this paper discusses perspectives for the energy sector in Colombia according to the implications of this auction.

Suggested Citation

  • Ricardo Moreno & Diego Larrahondo, 2021. "The First Auction of Non-Conventional Renewable Energy in Colombia: Results and Perspectives," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 528-535.
    • Handle: RePEc:eco:journ2:2021-01-61
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/10010/5632
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/10010/5632
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jorge Barrientos Mar n & Fernando Villada, 2020. "Regionalized Discount Rate to Evaluate Renewable Energy Projects in Colombia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(2), pages 332-336.
    2. Federico, Giulio & Rahman, David, 2003. "Bidding in an Electricity Pay-as-Bid Auction," Journal of Regulatory Economics, Springer, vol. 24(2), pages 175-211, September.
    3. Amira Kasem & Mohammad Alawin, 2019. "Exploring the Impact of Renewable Energy on Climate Change in the GCC Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 9(6), pages 124-130.
    4. Aslan B. Tasmaganbetov & Gulnar T. ?unurkulzhayeva & Zauresh O. Imanbayeva & Zhumabay Ataniyazov & Dinmukhammed N. Shaikin, 2020. "Future Development of Price Instruments of State Support for the use of Renewable Energy Sources in Kazakhstan," International Journal of Energy Economics and Policy, Econjournals, vol. 10(1), pages 140-144.
    5. Luiz T. A. Maurer & Luiz A. Barroso, 2011. "Electricity Auctions : An Overview of Efficient Practices," World Bank Publications - Books, The World Bank Group, number 2346, December.
    6. Milgrom,Paul, 2004. "Putting Auction Theory to Work," Cambridge Books, Cambridge University Press, number 9780521536721.
    7. Ellabban, Omar & Abu-Rub, Haitham & Blaabjerg, Frede, 2014. "Renewable energy resources: Current status, future prospects and their enabling technology," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 748-764.
    8. Hoang Phong Le & Ho Hoang Gia Bao, 2020. "Renewable and Nonrenewable Energy Consumption, Government Expenditure, Institution Quality, Financial Development, Trade Openness, and Sustainable Development in Latin America and Caribbean Emerging M," International Journal of Energy Economics and Policy, Econjournals, vol. 10(1), pages 242-248.
    9. Luis Obregon & Guillermo Valencia & Jorge Duarte, 2019. "Study on the Applicability of Sustainable Development Policies in Electricity Generation Systems in Colombia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(6), pages 492-502.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Juliana Restrepo-Trujillo & Ricardo Moreno-Chuquen & Francy N. Jiménez-García & Wilfredo C. Flores & Harold R. Chamorro, 2022. "Scenario Analysis of an Electric Power System in Colombia Considering the El Niño Phenomenon and the Inclusion of Renewable Energies," Energies, MDPI, vol. 15(18), pages 1-17, September.
    2. A.M. Ramirez-Tovar & Ricardo Moreno-Chuquen & Renata Moreno-Quintero, 2022. "Land-use in the Electric Colombian System: Hidden Impacts and Risks of Large-scale Renewable Projects," International Journal of Energy Economics and Policy, Econjournals, vol. 12(2), pages 127-134, March.
    3. Christian M. Moreno Rocha & Jorge D. Melo Boiler & Samira M. Mu oz Pizarro & Leidy M. Mora Higuera & William R. Insignares Conde, 2022. "Evolution, Challenges, and Perspective in the Implementation of Projects with Renewable Energy Sources: Colombia Case," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 230-236, November.
    4. Diego Larrahondo & Ricardo Moreno & Harold R. Chamorro & Francisco Gonzalez-Longatt, 2021. "Comparative Performance of Multi-Period ACOPF and Multi-Period DCOPF under High Integration of Wind Power," Energies, MDPI, vol. 14(15), pages 1-15, July.
    5. Tolmasquim, Maurício T. & de Barros Correia, Tiago & Addas Porto, Natália & Kruger, Wikus, 2021. "Electricity market design and renewable energy auctions: The case of Brazil," Energy Policy, Elsevier, vol. 158(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dejan Trifunović & Bojan Ristić, 2013. "Multi-Unit Auctions In The Procurement Of Electricity," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 58(197), pages 47-78, April – J.
    2. Diego Larrahondo & Ricardo Moreno & Harold R. Chamorro & Francisco Gonzalez-Longatt, 2021. "Comparative Performance of Multi-Period ACOPF and Multi-Period DCOPF under High Integration of Wind Power," Energies, MDPI, vol. 14(15), pages 1-15, July.
    3. Ghaninejad, Mousa, 2020. "عرضه، تقاضا، و پیشنهاد قیمت در بازار برق ایران [Supply, Demand, and Bidding in Iran’s Electricity Market]," MPRA Paper 105340, University Library of Munich, Germany.
    4. Pycia, Marek & Woodward, Kyle, 2021. "Auctions of Homogeneous Goods: A Case for Pay-as-Bid," CEPR Discussion Papers 15656, C.E.P.R. Discussion Papers.
    5. Carine Staropoli & Céline Jullien, 2006. "Using Laboratory Experiments To Design Efficient Market Institutions: The Case Of Wholesale Electricity Markets," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 77(4), pages 555-577, December.
    6. Estrella Alonso & Juan Tejada, 2010. "Equivalencia de Ingresos en un Duopolio Eléctrico," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 47(136), pages 191-215.
    7. Anatolitis, Vasilios & Welisch, Marijke, 2017. "Putting renewable energy auctions into action – An agent-based model of onshore wind power auctions in Germany," Energy Policy, Elsevier, vol. 110(C), pages 394-402.
    8. Andreas Voss and Reinhard Madlener, 2017. "Auction Schemes, Bidding Strategies and the Cost-Optimal Level of Promoting Renewable Electricity in Germany," The Energy Journal, International Association for Energy Economics, vol. 0(KAPSARC S).
    9. Carine Staropoli & Celine Jullien, 2006. "Using Laboratory Experiments to Design Efficient Market Institutions: The case of wholesale electricity markets," Post-Print hal-00569121, HAL.
    10. Carine Staropoli & Celine Jullien, 2006. "Using Laboratory Experiments to Design Efficient Market Institutions: The case of wholesale electricity markets," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00569121, HAL.
    11. Stetter, Chris & Piel, Jan-Hendrik & Hamann, Julian F.H. & Breitner, Michael H., 2020. "Competitive and risk-adequate auction bids for onshore wind projects in Germany," Energy Economics, Elsevier, vol. 90(C).
    12. Bichler, Martin & Grimm, Veronika & Kretschmer, Sandra & Sutterer, Paul, 2020. "Market design for renewable energy auctions: An analysis of alternative auction formats," Energy Economics, Elsevier, vol. 92(C).
    13. Mac Clay, Pablo & Börner, Jan & Sellare, Jorge, 2023. "Institutional and macroeconomic stability mediate the effect of auctions on renewable energy capacity," Energy Policy, Elsevier, vol. 180(C).
    14. Sales-Setién, Ester & Peñarrocha-Alós, Ignacio, 2020. "Robust estimation and diagnosis of wind turbine pitch misalignments at a wind farm level," Renewable Energy, Elsevier, vol. 146(C), pages 1746-1765.
    15. Laurent Lamy, 2013. "“Upping the ante”: how to design efficient auctions with entry?," RAND Journal of Economics, RAND Corporation, vol. 44(2), pages 194-214, June.
    16. Scott Duke Kominers & Alexander Teytelboym & Vincent P Crawford, 2017. "An invitation to market design," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 33(4), pages 541-571.
    17. Xinxin Liu & Nan Li & Feng Liu & Hailin Mu & Longxi Li & Xiaoyu Liu, 2021. "Optimal Design on Fossil-to-Renewable Energy Transition of Regional Integrated Energy Systems under CO 2 Emission Abatement Control: A Case Study in Dalian, China," Energies, MDPI, vol. 14(10), pages 1-25, May.
    18. Amadou Boly & Robert Gillanders & Topi Miettinen, 2016. "Deterrence, peer effect, and legitimacy in anti-corruption policy-making: An experimental analysis," WIDER Working Paper Series 137, World Institute for Development Economic Research (UNU-WIDER).
    19. Francisco José Sepúlveda & María Teresa Miranda & Irene Montero & José Ignacio Arranz & Francisco Javier Lozano & Manuel Matamoros & Paloma Rodríguez, 2019. "Analysis of Potential Use of Linear Fresnel Collector for Direct Steam Generation in Industries of the Southwest of Europe," Energies, MDPI, vol. 12(21), pages 1-15, October.
    20. Jeremy Bulow & Jonathan Levin & Paul Milgrom, 2009. "Winning Play in Spectrum Auctions," NBER Working Papers 14765, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    Non-conventional Renewable Energy; Energy Policy ; Auction Mechanism.;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2021-01-61. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.