Colombia to unveil storage rules, courts investors

Colombia will release definitive energy storage rules in the coming weeks in an effort to unlock financing for battery projects and support renewable power expansion, a senior energy official told BNamericas.

The long-awaited framework will establish rules for planning, operating and remunerating energy storage in both the national grid and isolated areas, according to Antonio Jiménez, executive director of Colombia’s energy regulator Creg.

"We expect this regulation to provide investment signals and clarity so these types of projects can secure financing," Jiménez said. 

The rules follow an April government decree outlining public policy guidelines for integrating battery storage into Colombia's electricity system.

Colombia does not yet have a utility-scale storage system in operation. Canadian Solar won a 2021 contract to build a 45MWh facility in Barranquilla, but the project has stalled, with no public information about whether it will continue. 

BNamericas is aware of at least three pilot initiatives – belonging to Celsia, Erco Energía and Enel unit Emgesa – each of which serves the companies' own operations. 

Experts cite Colombia's existing fixed pricing model and the absence of a remuneration framework for ancillary services as key hurdles.

"With this regulation, we are clearly defining the services batteries will provide, and with that developers will understand how they can structure investments in these types of assets," Jiménez said. 

“What we see with batteries is that they are such a flexible element that they can help improve the conditions under which these highly variable resources can interact with the electrical system we have today."

The regulations are expected to be in place before Colombia's first auction for renewable capacity paired with storage.

Announced in April and slated for launch before July 31, the auction will offer 15-year contracts from 2030, with products for daytime solar generation and evening peak-hour supply backed by battery storage.

Jiménez said he expected strong interest from international companies. 

“In general, Colombia’s rules are very stable from both a public policy and business regulation standpoint,” he said. “So I think this can be a very positive signal for companies to invest in the country.”

The full interview with Jiménez will be published in the coming days.