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Latin America Renewable Energy: Calls for Public Bids

In Latin America, encouragement of renewable energy use is a growing trend. Several countries have called for public bids for electricity supply generated from renewable sources, including biomass, hydraulic, geothermal, solar, and tidal. Concessions for the construction and operation of renewable energy projects have been granted. So far in 2019, Chile, Colombia, and Ecuador have called for public bids, and Brazil and Argentina will do so in the second half of the year.

I.    General Terms

  1. Argentina. On May 17, 2019, agreements relating to electricity generation through renewable power sources were awarded via “Round 3” of public bidding. In addition, the media recently announced that a new call for public bids on renewable energy projects (wind and solar), “Round 4”, will be published in Argentina in the second half of 2019. However, this notice has not been officially published.

  2. Chile and Colombia recently published calls for electricity generation projects from renewable energy sources.

  3. Ecuador. On Aug. 28, 2019, the Ministry of Energy and Non-Renewable Natural Resources (Ministerio de Energía y Recursos Naturales No Renovables) published two calls for public bids related to the construction and operation of a photovoltaic project known as “El Aromo” and a wind power project known as “Villonaco II and III”.

  4. Brazil. The Ministry of Mines and Energy (Ministerio de Minas y Energía) called for public bids for the procurement of electricity: A-6 2019, A-4 2020, A-6 2020, A-4 2021 and A-6 2021, through orders PORTARIA Nº 151 and PORTARIA Nº 152, which will be published on Oct. 17, 2019; April 23, 2020; Sept. 23, Sept. 24, 2020; April 29, 2021, and Sept. 30, 2021, respectively.

II.    Relevant Information on the Calls for Public Bids

The following table compares the most significant information regarding the existing calls for public bids, including the one in Argentina (which was already awarded):


III.    Participation Requirements

To participate in the ongoing calls for public bids, the following legal, technical, and financial requirements must be satisfied:


IV.    Execution of Agreements Between Private Parties

  1. Argentina. The Renewable Energy Term Market (Mercado a Término de Energías Renovables) (MATER) provides a contracting mechanism between private parties as an alternative to the joint purchase of renewable energy with the government. So far, MATER has launched seven rounds of bids for wind and solar projects for the execution of agreements between private parties. The last three have not been awarded yet.

  2. Mexico. Since the government’s cancellation of the fourth bidding process for the procurement of renewable energy for power and long-term clean energy certificates on June 27, 2019, companies Bravos Energía and Aklara announced the first private long-term electricity call for bids that will allow for the development of some clean technology projects, and in which power, electricity, and clean energy certificates may be purchased and sold. This public call represents the first attempt to develop the renewable energy market through the private sector. As more companies continue to replicate private bids, a new path for the development of the electricity market will be developed. According to the calendar published by Bravos Energía and Aklara, the terms to participate in the bidding are expected to be published in September 201

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About this Author

Erick Hernández Gallego, Environmental, Energy and Resources, Attorney, Greenberg Traurig Law Firm
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Erick Hernández represents domestic and international clients on environmental and energy matters, including corporate finance, healthcare, regulatory compliance and real estate matters. Erick has represented clients in several project finance, mergers and acquisitions and electric energy tenders, as well as hydrocarbons tender procedures, both in accordance to the new energy reform in Mexico.

Erick has been practicing Mexican environmental, energy, real estate, administrative and regulatory law for more than 15 years, advising Mexican and...

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Nancy Guillén Environmental Attorney Greenberg Traurig
Associate

Nancy Guillén focuses her practice on global energy, including oil and gas, administrative, and environmental law. She advises international companies dedicated to upstream activities, including public bidding procedures, drafting of contracts and designing legal strategies.

 

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