The 2027 Isolated Systems auction under consultation

On 29 October the Ministry of Mines and Energy opened a public consultation on the guidelines for the 2027 Isolated Systems Supply Auction, with contributions until 17 November. There are eight lots, around 123.66 MW, 31 localities in the North region, with contracts of up to 180 months.

The draft proposes at least 30% renewable energy. EPE's Isolated Systems planning, 2025 cycle, records that the 2025 auction required 22% for the first time, that diesel generated around 70% of the energy of these systems in 2025 and that 16 interconnections to the SIN are planned by 2030.

The 15-year term raises two residual value questions. The draft allows used equipment, with an independent technical report, which reduces the initial investment and shortens the remaining useful life. And the planned interconnection calls for clarity on how each contract treats that scenario.

The direction is favourable: more renewables reduce exposure to fuel in systems whose cost is partly covered by the CCC. The value stays with whoever sizes the asset to last the contract. The consultation is the moment to ask for clarity.