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SEI working paper

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Creating local value: renewable energy auctions in Colombia

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SEI working paper

Creating local value: renewable energy auctions in Colombia

This working paper examines how Colombia’s renewable energy auctions can foster a just and inclusive energy transition by integrating socio‑economic and community‑driven objectives.

José Vega Araújo, Miquel Muñoz Cabré / Published on 21 May 2025

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Citation

Vega-Araújo, J., & Muñoz Cabré, M. (2025). Creating local value: renewable energy auctions in Colombia. SEI working paper. Stockholm Environment Institute. https://doi.org/10.51414/sei2025.027

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The authors propose two complementary pathways: (1) enhancing large‑scale project benefit sharing and community engagement, through strengthened qualification requirements and multicriteria award mechanisms, and (2) scaling up energy communities by reserving auction quotas via an adhesion process and establishing a dedicated support agency. These pathways offer a unique chance to embed non‑price indicators – such as socio‑economic targets that ensure the renewable‑energy rollout is more inclusive and equitable – and to implement tailored provisions that support the participation of energy communities within auction processes in Colombia.

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SEI working paper / PDF / 1 MB

SEI authors

José Vega Araújo

Team Leader: Renewable Energy; Research Fellow

SEI Latin America

Miquel Muñoz Cabré

Senior Scientist

SEI US