On July 30, 2021, XM Compañía de Expertos en Mercados S.A. E.S.P. ("XM") published the final version of the terms of reference of the third energy auction, CLPE No. 03 – 2021, as mechanism defined by the Ministry of Mines and Energy ("MME") to promote the long-term contracting of electric energy.

In accordance with the terms of reference and Resolution 40179 of 2021 issued by the MME, the auction will have the following features:

1. The MME designated XM due to its capacity as Administrator of the System of Commercial Exchanges ("ASIC"), as the auctioneer of this auction.
2. Non-Conventional renewable energy sources projects with a capacity equal to or greater than 5 MW, will be able to participate in the auction.
3. Projects that (i) do not have energy obligations assigned (OEF); and (ii) that have not executed energy supply contracts, due to the 2019 long-term contracting auction, may participate and bid in any of the established time slots.
4. Projects that have energy obligations assigned (OEF), or that have entered in energy supply contracts, resulting from the 2019 long-term contracting auction, may participate by submitting their bids in the time slot No. 3, according with the provisions of Article 20(b) of Resolution 40590 of 2019.
5. The project must be registered in the registry of electric power generation projects of the Mining and Energy Planning Unit (UPME) at least in phase 2, and have approval for connection to the National Transmission Grid or Regional Transmission Grid.
6. The duration of the energy supply contract to be awarded will be fifteen (15) years as from January 1, 2023.
7. Access to the terms of reference will be free of charge for the interested parties.
8. The following persons may register to participate as sellers: (i) a legal entity established in Colombia that may carry out the generation activity and that is a domiciliary public utilities company (“ESP”); (ii) a legal entity established in Colombia that is not a domiciliary public utilities company, in which case it must present the commitment to transform to an ESP; and (iii) one or several local or foreign natural or legal persons or associative agreements through the modality of promise of future company.
9. As buyers, traders registered in the ASIC may register to participate.
10. The participants must provide a bid bond as part of the pre-qualification requirements. The bid bond must be a bank guarantee or stand by letter of credit issued by a recognized financial entity domiciled in Colombia, or a standby letter of credit issued by a recognized financial entity domiciled abroad.

Some of the most important auction dates are as follows:

You can access the terms of reference and conditions, and to the complete schedule of the auction at the following link: https://www.xm.com.co/Paginas/Subasta-CLPE-2021.aspx