There are expectations for the auction in the sector, mainly due to the need to continue increasing the supply, which currently does not exceed demand and is growing every year.
Ricardo Santamaría, with more than twenty years of experience in the energy sector, analyzed that the Creg must make decisions based on the independence granted to it by the Constitution of Colombia and the input of the Mining and Energy Planning Unit (Upme). “It is clear that the current government is pursuing a public policy in which it aims to diversify the matrix with new renewable generations and within the energy transition. Based on the regulations, the Creg argues to decide whether the auction will be done now, analyzing aspects such as growing demand, that energy is needed to be available and that energy is guaranteed to be transported. There is a delay in this aspect and all this is being taken into account along with the government policy of the government.”
The next resolution held by the Creg to intervene in the market and address the stress situation in the system due to the decrease in reservoir levels and where the majority (65%) of the country’s energy is generated with the El Niño phenomenon, plus the transfers that must be made to users for a fee, indicate for Alejandro Lucio that it must incur higher costs due to reliability.
“Assuming that these robustness requirements can be met at the next auction of reliability charges (if, given this intervention, every investor in a thermal project is encouraged to participate) or in the worst case, a not far distant severe energy shortage that in the next drought, and why not the one we are experiencing now, will lead us to a blackout,” Lucio told the website Valora Analitik.
Source: El heraldo
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
