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