Renewables debut in Colombia firm energy auction

: Electricity
19/03/01

New solar and wind projects debuted in a firm energy auction yesterday in Colombia, putting the country onto the map of renewables that have swept across Latin America in recent years.

The auction resulted in awards to 70 power generation projects, of which almost 1.4GW will come from new solar and wind projects.

The government celebrated the outcome following a disappointing 26 February auction for long-term supply contracts that was geared toward renewables. No contracts were awarded because minimum criteria for competition were not met.

Nearly 15pc or 37.37GWh/d of the 250.55GWh/d in firm supply awarded in yesterday´s auction will come from new projects, including solar, wind, natural gas and hydro plants. The balance will come from 47 existing power stations.

The renewable winners include six wind farms with 1,160MW of total installed capacity in La Guajira department, and two solar projects with 238MW of capacity in Cesar department.

The auction ensures supply through 30 November 2023. Peak demand in the 2022-23 period is estimated at 226.84GWh/d.

The new projects will boost the country´s generation capacity by 23pc to 4,010MW from its current level. But controversially, 2,400MW of that is slated to come from the stalled HidroItuango hydroelectric project on the Cauca River in Antioquia department. The project was close to completion last year when a series of perilous structural flaws were discovered.

The project, which is controlled by public utility company EPM, nonetheless was allowed to participate in the auction and won a contract for 3.1GWh/d of firm energy.

Disgruntled coal-fired generators, already facing financing challenges, had withdrawn from the competition in which they said they could not compete.

The new projects require $3.5bn in total investment, of which $1.5bn alone will come from the new solar and wind projects.

"This auction was a success as it makes the electricity sector more resilient, more secure and more diverse while lowering prices," mines and energy minister María Fernanda Suarez said.

The government is seeking to install 1.5GW of alternative renewable capacity by 2023, from a current 50MW.

The generators will be paid $15.1/MWh for firm energy starting on 1 December 2022, 11pc lower than the last firm energy auction price of $17.1/MWh but higher than the almost $14/MWh in a 2008 auction.

But if the projects come on line earlier than 1 December 2022, electricity and gas regulator Creg will pay as much as $17.1/MWh, said Maria Nohemí Arboleda, director of wholesale market operator XM.

Italy´s Enel was a top winner in the auction. Of the 1,398MW in new renewable projects, its subsidiary Emgesa is already building the 86.2MW El Paso solar plant for $70mn in Cesar province. Enel Green Power won with three wind farms: 200MW Tumawind, 200MW Windpeshi and 99MW Chemesky, all located in La Guajira department in northeastern Colombia.

New gas-fired units include the 234MW closing of the open cycle of Termocandelaria, which is supplied by imported LNG. In addition, 150MW will come from TermoYopal new units 3, 4 and 5 and 190MW from El Tesorito of Proelectrica.

Another 180MW of new hydro projects will come from the 120MW Miel 2 and 60MW Alto Porce.

Around 70pc of Colombia's generation currently comes from hydroelectric plants.

"The firm energy auction proved to be a natural mechanism to expand electricity capacity. It was so successful that even renewable projects decided to participate," Alejandro Castañeda, director of the Colombian thermal generators chamber Andeg.

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25/05/12

Australian PM reaffirms climate priority in new cabinet

Sydney, 12 May (Argus) — Australian prime minister Anthony Albanese has reaffirmed renewable energy commitments with cabinet picks after the Labor party's election victory on 3 May. Chris Bowen, who led key changes to the safeguard mechanism , the capacity investment scheme (CIS) and fuel efficiency standards for new passenger and light commercial vehicles, remains minister for climate change and energy. Madeleine King, the minister for resources and northern Australia, retains her cabinet position, while Tanya Plibersek, previously the minister for environment, is now the minister for social services and is replaced by Murray Watt, formerly the minister for workplace relations. In the previous term, Plibersek failed to establish an environment protection authority and reform the Environment Protection and Biodiversity Conservation Act, which was an election promise in 2022, after intervention from Western Australian state minister Roger Cook. Environmental lobby group the Australian Conservation Foundation (ACF) has welcomed Watt, who was also the minister for agriculture for two years to 2024, into his new role. "Having a former agriculture minister in environment increases the opportunities for co-operation on the shared challenges facing nature protection and sustainable agriculture," the ACF said. The ACF also welcomed Chris Bowen in returning to his role as environment minister for his "clear mandate" to continue the energy transition. Josh Wilson remains assistant minister for climate change and energy. Participants in the renewable energy carbon credit industry are urging the new Department of Climate Change, Energy, the Environment and Water to speed up the creation of new Australian Carbon Credit Unit (ACCU) methods in the new government term. They are also seeking greater transparency in ACCU data base , which requires legislative change. And renewable energy companies and lobby groups will be closely following a review of Australia's National Electricity Market wholesale market settings , which will need to be changed following the conclusion of the CIS tenders in 2027 and as Australia transitions to more renewables from its ageing coal-fired plants. By Grace Dudley Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Minister eyes German energy transition 'reality check'

25/05/09

Minister eyes German energy transition 'reality check'

London, 9 May (Argus) — Germany's energy transition needs a "reality check", the country's new energy minister Katherina Reiche has said, stating that the government will prioritise security of power supply over climate protection. The government must strike the right balance between climate protection, security of supply and costs, Reiche said at the Ludwig Erhard Summit earlier today, arguing that the focus in recent years has been disproportionately on the former. The new government will put security of supply "first", while also focusing on keeping system costs — such as redispatch and grid expansion costs, which previous governments "underestimated" — as low as possible. The government is aiming to "quickly" hold tenders for the construction of "at least" 20GW of new gas-fired capacity, Reiche said, citing the recent blackout in the Iberian peninsula as evidence that Germany cannot become complacent over its power supply. While she acknowledged that the reasons for the blackout are not yet fully determined, she said that a lack of inertia in the power system is likely to have contributed to it, and that more flexible gas-fired plants "could have helped" Spain avoid the blackout. She called for Germany to agree "long-term delivery contracts" for natural gas, to ensure security of supply in the coming years. And Reiche emphasised the importance of "technology openness", particularly when it comes to Germany reaching its goal of becoming climate-neutral by 2045. There may be new technologies that are yet to be invented or fully harnessed that could aid the country in fulfilling its goal, she noted. Hydrogen has the potential to play a role in a "mix" of other technologies in the energy transition, she said, but the expectations for it have become too high for a product that is "not even on the market". Reiche also called for more patience with regard to electrification in Germany, stating that "the transformation of an entire economy [to become climate friendly] in a linear, year-on-year path is not feasible". And the minister reiterated previous CDU/CSU-SPD coalition pledges to reduce the electricity tax and to introduce an industry power price. CDU party member Reiche became the new energy minister on Tuesday, when CDU leader Friedrich Merz was voted in as chancellor, replacing the SPD's Olaf Scholz. By John Horstmann Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australian firms flag coal phase-out timeline concerns

25/05/09

Australian firms flag coal phase-out timeline concerns

Sydney, 9 May (Argus) — Energy utilities raised concerns that Australia's coal-fired power generation phase-out might be running on an unrealistic timeline, according to submissions to the National Electricity Market (NEM) review consultation process. Utilities AGL Energy, Alinta Energy, Delta Energy, Energy Australia, Origin Energy and Stanwell — which operate 10 of the 20 coal-fired power plants in Australia (see table) — submitted separate recommendations to the consultation launched late last year looking at wholesale market settings. This came after the conclusion of the Capacity Investment Scheme (CIS) tenders in 2027, and as Australia transitions to more renewables from its aging coal-fired plants. The Australian Energy Market Operator (Aemo) forecast the country will exit all coal-fired generation by 2038 in its Integrated System Plan (ISP) published in 2024. But Delta Energy predicts that this timeline will not be met, and views ISP's priority as emissions reduction targets rather than a realistic timeline. Insufficient capacity to replace the coal plants was a common issue flagged by these companies, with AGL saying this is partly because of uncertainty in the market leading to less investments. The utility plans to close all its coal plants by the end of June 2035. AGL was Australia's largest emitter of greenhouse gas emissions in the 2024 financial year, according to the Clean Energy Regulator (CER), followed by Stanwell, Energy Australia and Origin Energy. The transition could be supported using flexible dispatchable resources, according to Origin Energy. The coal phase-out means more variable renewable energy (VRE) is required, but VRE output will not necessarily match demand. "The NEM review must also consider the actions to facilitate the planned retirement of coal-fired power stations from the energy system, which will still be occurring in the NEM beyond the CIS," Stanwell warned. "The urgency of developing solutions cannot be overstated, as any indecision now would result in increased government intervention later, and a disorderly and costly NEM beyond the CIS." Gas-fired generation A few firms view gas-powered generation as critical in the transition away from thermal coal and in maintaining system reliability. It will provide back-up in times of renewable droughts, said Stanwell and AGL, and should be noted in discussions of the forward strategy. But Alinta Energy is cautious of the costs of gas-fired power plants, believing them to be the least costly for customers but not economically viable because of their exposure to global gas market prices. Alinta's suggestion is to reduce the market's dependence on high-cost facilities including gas-fired facilities. Mixed views on capacity market Some companies mentioned a capacity mechanism as a solution. Coal-fired facilities should be allowed to continue until they can be replaced, said Alinta Energy, and gas power plants are necessary. Energy Australia and Delta are calling for the NEM to stay technologically neutral in this process, keeping thermal coal exits in mind. A capacity market needs to be sustainable without government subsidies, Alinta Energy said, and exit strategies for government intervention should be clear from the beginning. But capacity markets can lead to higher costs for customers, according to AGL, because of potential over-procured capacity. "If a capacity mechanism was implemented, it would be important to consider the impact of any capacity incentive on the operation of the NEM and the appropriate level of the market price settings — a balance that may be difficult to strike," AGL noted. The expert independent panel leading the review will continue carrying out consultation, and is expected to make final recommendations to energy and climate ministers in late 2025. By Susannah Cornford Australia coal-fired power plant closures in NEM Plant Capacity ( MW ) Owner Closure date State Emissions CER 2023/24 year Scope 1 & 2 of CO2e Eraring 2,880.0 Origin 2027 NSW 13,550,220.0 Yallourn 1,480.0 Energy australia 2029 Vic 10,502,080.0 Callide B 700.0 CS Energy 2029 Qld 4,028,161.0 Total by 2030 5,060.0 28,080,461.0 Coal plant closures in NEM after 2030 Bayswater 2,640.0 AGL 2030-33 NSW 13,712,719.0 Vales Point 1,320.0 Delta 2033 NSW 7,111,963.0 Stanwell 1,460.0 stanwell 2035 Qld 6,982,204.0 Tarong 1,843.0 Stanwell 2035 Qld 10,936,021.0 Kogan 740.0 CS Energy 2035 Qld 4,522,472.0 Callide C 825.0 CS Energy 2035 Qld 688,038.0 Loy Yang A 2,210.0 AGL 2035 Vic 18,723,707.0 Subtotal 11,038.0 62,677,124.0 Total by 2030 16,098.0 90,757,585.0 — CER Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mitsubishi joins Philippine coal plant phaseout project

25/05/09

Mitsubishi joins Philippine coal plant phaseout project

Osaka, 9 May (Argus) — Japanese trading house Mitsubishi has agreed to join a project to phase out a coal-fired power plant in the Philippines, aiming to generate carbon credits through the Transition Credits mechanism along with Japan's Joint Crediting Mechanism (JCM). Mitsubishi and and its Hong Kong-based subsidiary Diamond Generating Asia (DGA) has agreed to join Philippine energy firm Acen, GenZero — a subsidy of Singapore state-owned investment firm Temasek — and Singapore conglomerate Keppel to phase out the 246MW South Luzon coal-fired plant in Batangas, the Philippines, and replace it with a clean power facility. The initial deal for this project was signed by Acen, GenZero and Keppel in August 2024. Acen is now seeking to decommission the coal-fired plant by 2030, instead of the previous target of 2040. It is still unclear what types of clean power sources will then be deployed. But renewables such as solar or onshore wind, alongside storage batteries, could be possible, a Mitsubishi spokesperson told Argus . The partners aim to leverage Transition Credits (TCs) for the early retirement of the plant. TCs are high-integrity carbon credits generated from the emissions reduced through retiring a coal-fired plant early and replacing this with clean energy. The South Luzon project is expected to be one of the first converted coal-fired plants in the world to generate TCs. The project is expected to generate carbon credits equivalent to 19mn t of CO2 emissions reduction over 10 years, the Mitsubishi spokesperson told Argus . Mitsubishi plans to include this project in the JCM mechanism, as the Philippines has been Japan's JCM partner country since January 2017. The company is already marketing the carbon credits in Japan, assuming the credits will be verified under the JCM, while also hoping to sell them in Singapore and the Philippines. Verified carbon reductions or removals under the JCM can be quantified on an international basis. Some of the JCM credits issued from such mitigation efforts will be used to achieve Japan's nationally determined contributions (NDCs), while ensuring double counting is avoided on the basis of corresponding adjustments between countries and consistency with the guidance on co-operative approaches referred to in Article 6.2 of the 2015 Paris climate agreement. JCM credits could be also traded under the Japan's green transformation emission trading system (GX-ETS), which will be officially launched in autumn of 2027 . The GX-ETS adopts the cap-and-trade programme, with the government allocating free allowances for each eligible entity every year. Japan is still highly dependent on coal-fired generation, although Tokyo has pledged to phase out inefficient coal-fed plants by 2030. Coal-fired output accounted for 32pc of the country's total power generation in 2024, according to data from the trade and industry ministry. When asked by Argus where there is the potential for the introduction of the Transition Credits mechanism in Japan, the spokesperson said Mitsubishi has not ruled out the possibility, but added there have been no discussions on this for now. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Japan’s Erex to build biomass power plant in Cambodia

25/05/08

Japan’s Erex to build biomass power plant in Cambodia

Tokyo, 8 May (Argus) — Japanese renewable energy developer Erex aims to start constructing a 50MW biomass-fired power plant in Cambodia in mid-2025, the company told Argus today. The plant in southern Cambodia's Kampong Speu province will be the first biomass-fired power project for Erex in the country. It is scheduled to start commercial operations in the 2027-28 fiscal year, and will burn domestic wood chips and agricultural residues to generate around 350 GWh/yr. The Cambodian government will purchase all the electricity generated at the plant for 25 years after its start-up. Erex plans to build up to five biomass-fired power plants which will burn domestic biomass fuels, as well as several wood pellet factories in Cambodia. The government expects these projects to raise the country's energy security. Erex on 23 April began commercial operations at the 20MW Hau Giang biomass-fired power plant in southern Vietnam, its first biomass-fired power project in the country. Erex aims to construct up to 18 biomass-fired power plants in Vietnam, following Hau Giang. The company has already started constructing two 50MW plants in northern Vietnam. Erex also started wood pellet production at its first factory in Vietnam in March, with a capacity of 150,000 t/yr. The company plans to build up to 20 wood pellet factories in the country. Erex's profits from projects in Vietnam and Cambodia are expected to grow rapidly and could account for more than half of its total profits by around 2030, according to the company, and the projects would also contribute to both countries' decarbonisation efforts. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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