Lone European bidder in Colombia's debut offshore wind tender – but regulator upbeat

Colombia has received a single bid from a subsidiary of Denmark's Copenhagen Infrastructure Partners (CIP) in the first offshore wind round to reach the bidding stage in South American as the market regulator tried to remain upbeat about the outcome.

Orlando Velandia, who heads Colombia's National Hydrocarbons Agency (ANH), said the bid submitted by CIP’s CI GMF Cooperatief unit amounted to an “international vote of confidence” in Colombia’s plans to develop an offshore wind sector.

In a statement, the ANH described CIP as "one of the most important investment funds in the world for energy infrastructure and the green transition".

"Danish capital and expertise in Colombia will strengthen bilateral cooperation between the two countries and pave the way for the development of offshore wind projects, a new energy frontier with significant potential for power generation, technological innovation, and local supply chain development," the ANH stated.

But the result is likely to fall short of Colombian government plans to award development rights for at least 1GW capacity in the bidding round.

In December, Colombia's Ministry of Mines and Energy gave preliminary approval to eight companies to participate in the round.

The regulation setting out the auction rules was drafted and revised with feedback from offshore wind developers that had pre-qualified for the wind tender.

It includes a revenue support mechanism called Payment for Difference (PfD) which is intended to accelerate investment in renewable energy.

"The government is laying solid foundations for continuing with the next phases of this offshore wind round. The key is to continue with dialogue and building trust, as well as offering contractual and regulatory solidity," commented ANH head of promotion and assignment, Nadia Plazas.

Colombian President Gustavo Petro has been under pressure to turn his election promises of a green energy transition into reality.