Mauricio Gómez - The business and financial case for renewables in current energy markets

The business and financial case for renewables in current energy markets

Climate Business ForumJune 2016

Electricity demand projections

WOE (2014)

WOE (2014)

World electricity generation

• New capacity is added to replace old plants and meet increasing demand. In the New Policies Scenario, installed capacity worldwide increases by 80%.

• To replace the fossil fuel share in the 450 scenario (10,635 TWh), we need to construct 1,945 new plants of 1000 MW and 0.5 plant factor, by week .

Colombia’s energy mix

XM (2016)

Levelized cost of electricity

LCOE (USD/MWh)

Time (Hours)

Hydro

Renewables

Coal

Natural Gas

Oil

What is CREG working on?

SEALED AUCTION

• Yearly average Energy• Long term contracts: 20 years• Pay as bid• Base load dispatched• FEO so RC for firm energy• Only for new projects

ASCENDING AUCTION

• Reserve price: Average purchase price + RC• Long term contracts: 20 years, or 5 yr term contracts• Annual balance.• Hourly settlements• Monthly payments• Open to regulated & non

regulated users.

Thank youwww.creg.gov.co

mauricio.gomez@creg.gov.co