Terms of reference CLPE auction nº3 2021

1. Terms of Reference CLPE Auction
N°03 2021
Innovación ytransformaciónenel sector eléctrico

2. Regulatory Framework...
Purpose of the Auction
Ministerio de Minas y Energía issued Resolutions 40590 of 2019,
40678 of 2019 and 40141 of 2021 through which it defined a
mechanism to promote long-term contracting for electricity
generation projects
Resolution 40179 of 2021, was issued for the realization of the 3rd
auction, no later than next October 31, 2021.
It is the promotion of the long-term contracting of electrical energy in accordance
with the provisions of Decree 1073 of 2015 and all its additions or modifications.
As a result of the auction, 15-year Long-term Energy contracts will be signed from
January 1, 2023.

3. Comments Terms of
Reference July23, 2021
• Auction Overview:
• Apostilles
Authentications
• Confidentiality
• Auction Declarations
• Addenda
• Specifications Queries
• Auditor
• Technology Platform
Interested Register:
• Who can register
• How to register
• Legal Representation or
Attorneys
• Documents for Registration
Innovación ytransformaciónenel sector eléctrico
Terms of Reference Auction CLPE 03 -
2021
https://www.xm.com.co/Paginas/Subasta-CLPE-2021.aspx
Prequalification: (Envelope 1)
• Technical requirements
• Financial requirements
• Legal requirements
• SERIOUSNESS guarantee
• Corrections
Adjudication: (Envelope 2)
• Competition Criteria
• Definition of maximum
caps
• Definition Target demand
• Sellers / Buyers bids
• Adjudication
Contract Management
• Signature of the contracts
of the awarded participants
• Presentation of compliance
guarantees

4. General Information
Language
Questions,answersandactionsrelated
totheauctionmustbefiled inSpanishor
accompaniedbyanOfficialTranslation
Apostille
Publicdocumentsfromabroadwillbe
accepted,iftheyhavebeenissuedinthe
territoryorjurisdictionthatarepartofthe
HagueConvention.
Apostillewillbeacceptedbasedonthe
provisionsofLaw455of1998
Confidentiality
Theinformationpresentedfortheauctionwillbe
confidentialuntiltheAdjudicationandmayonlybeknown
bytheauctioneer,unlessitisexplicitlyindicatedinthe
applicableprovisionsorthesespecificationsthatitispublic
andthatwhichtheMMEaccessesthroughthe
technologicalplatform.
Digitalsignature
Allcommunicationswillberecognizedasvalidas
longastheymakeuseofadigitalsignature
backedbyacertificateissuedbyanentity
authorizedbytheSIC
Thedigitalsignaturemustcomplywiththe
attributesrequiredintheparagraphofarticle28
ofLaw527 of1999andwithDecree 1074of
2015,.
Authentication
Iftheterritoryorjurisdictionisnotpartoftheconvention,
authentication,legalizationandconsularizationbythe
Colombianconsulwillberequired

5. General Information
Queries on the Terms of Reference
TheymustbemadetotheemailInfo@xm.com.coidentifyinginthe
subjectthatitisthe“subastaclpeno.03–2021 ”untilJuly23,2021.All
inquiries,commentsandrequestsformodificationorclarificationon
theTermsofReferencethataremadeindueformwillbestudiedand
answeredbytheauctioneer
Addenda
If the auctioneer considers it necessary to
modifytheTermsofReference,hewillissue
an addendum for this purpose, which must
previously have the no objection from the
MME. Addendum will be made known to
the interested parties through the website,
the term for the addenda will be until
September28,2021
Technological platform
Theauctioneerwilladjust,manageanddirectlyoperatea
technologicalplatformthatallowstheauctiontobeheld.
ThisPlatformwillbeavailablefromtheregistrationofthe
interestedparties
Auditor
The auction will have an auction auditor who
must have the characteristics and fulfill the
duties and responsibilities established in
Resolution MME 40590 of 2019
Acceptance
Themerepresentationofdocumentstoprovetheprequalificationrequirementsby
theregistrantswillconstitute,withouttheneedforanysubsequentact,their
acceptanceofalltheprovisionsandtheseTermsofReference.

6. Who can register:
• As Sellers:
a) A legal person domiciled in Colombia that can carry out the generation activity and that is a public service company
authorized for this purpose
b) A legal person domiciled in Colombia that is not ESP and that undertakes to be one and submits the Prequalification
documents
c) One or several person (s) natural or legal, national or foreign or associative schemes through the modality of promise
of future society
• As Buyers:
• Retailers who are registered with the ASIC may register
Legal Representative or Attorney
Interested parties who intend to participate in the auction must do so through one (1) Legal Representative or
Attorney
The attorney-in-fact must be designated through a general power of attorney and have notarized authentication.
Powers: they must be fully empowered without restriction and in an unlimited amount to participate in the auction:
a) Subscribe and submit prequalification requirements, and offer
b) Deal with the Auctioneer about all the documents delivered in Envelopes 1 and 2 and in general all the
documents and procedures with the auction
c) Respond with binding effect to all questions or requests for correction or clarification made by the auctioneer.
d) Perform as many acts as necessary to successfully complete the scope of the representation
1
2
Stakeholders Registration 17 and 27 August 2021

7. How to register:
Those interested in Participating in the Auction may register on the aforementioned dates, for which they must:
a) Enter the Technological Platform and fill out the Registration Option the information requested for the company
and the Legal Representative.
b) Fill in the platform the Quality in which the "Buyer or Seller" will act in the Auction In the event that they are
interested in submitting a proposal for both qualities, they must make two independent registration requests
so that the technological platform generates independent users and passwords to each quality
c) The Legal Representative will be in charge and solely responsible for the user and the passwords of the
platform, which may change at any time through the technological platform.
Stakeholders Registration 17 and 27 August 2021
3
4
Documents for Registration
a) Certificate of Existence and Legal Representation or equivalent document
b) If the Stakeholder does not have the nature of a Company, the documents that prove its existence and legal
representation must be presented.
c) Copy of the Identity Documents of the Legal Representative.
d) If there is an Attorney:
a) Power of attorney authenticated at a notary or with a digital signature
b) Copy of the Identity Document.
Digital signature

8. Prequalification stage. Envelope N° 1 until September 6
Legal Requirements.
Financial Requirements.
As Sellers
As Buyers
Tecnical Requirements.
Legal Requirements.
Financial Requirements.
Requirements:

9. Legal requirements:
• Letter to Present of prequalification documents
• Documents of existence and legal representation and power of attorney
• Documents stating that the participant is incorporated and domiciled in Colombia, it is an E.S.P
• In case of limitations to the powers of the legal representative, a copy of the authorizations of the competent
authorities is required.
As buyers
Financial Requirements:
• Document in which the registrant declares the maximum amount of energy available to buy in a day.
• Certification of the subscribed capital and the shareholder composition of the registrant, signed by the tax
auditor or in the absence of this by the legal representative. (issued up to 30 days before submission)
Digital signature
Prequalification stage. Envelope N° 1 until September 6

10. As Sellers
Digital signature
Technical requirements:
• Certification issued by the UPME stating that the project is registered at least in phase 2
• Connection concept approved by the UPME.
• Declaration of the legal representative of the generator or project promoter accepting the centralized dispatch - Form No. 4
• Declaration signed by the legal representative of the respective generator or project promoter detailing what previous
commitments it has assigned in the CLPE auction N ° 2 -2019 or in OEF.
• Detailed schedule of the project with indication of the critical path, the date of entry into commercial operation of the
FNCER generation project and the s curve.
Prequalification stage. Envelope N° 1 until September 6

11. Requisitos Legales:
• Letter to Present of prequalification documents
• Documents of existence and legal representation or power of attorney of the signer
• Authorizations from the competent corporate bodies
• Authorization of the Project Owner if it is different from the UPME Phase 2 registration.
• Document from the corporate body in which they authorize the company as an ESP
• Sworn declaration of economic ties with other sellers.
As Sellers
Digital signature
Prequalification stage. Envelope N° 1 until September 6

12. As Sellers
Digital signature
Financial Requirements:
• Document with the maximum amount of energy to be sold in a day [kwh-day].
• Certification of the subscribed capital and the shareholding composition of the
stakeholder.
Prequalification stage. Envelope N° 1 until September 6

13. Pública
Seriousness guarantee Envelope N ° 1 Until September 29
Seriousness guarantee must be constituted in favor of the auctioneer and payable to the
order of the buyers and / or sellers who act as counterpart
The purpose of the guarantee must be: “amparar la seriedad de la oferta que formule el
participante de conformidad con el pliego de la subasta CLPE No. 3 -2021”
The guarantee must have a minimum validity of six (6) months, from the presentation of the
offer - envelope no. 2

14. Value to be
Guaranteed
Buyers
The sum of one hundred thirty-nine
Colombian pesos (COP) ($ 139.00) /
kWh.
This value will be multiplied by five
percent (5%) of the maximum amount
of energy available to buy in a year.
Sellers
The sum of one hundred thirty-nine
Colombian pesos (COP) ($ 139.00) /
kWh.
This value will be multiplied by ten
percent (10%) of the maximum amount
of energy available to sell in a year.
Seriousness guarantee Envelope N ° 1 Until September 29
Firma Digital

15. Non-compliance events for the Seriousness guarantee
Failure to sign all of the resulting contracts
The non-constitution, delivery or approval by the ASIC of the guarantee
Failure to deliver the compliance or payment guarantee, as the case may be.
The non-renewal or update of the seriousness guarantee.

16. Adjudication Stage. Envelope N ° 2 - October 26
Competition
criteria
The criteria of Competition Defined
by CREG through Resolution will be
used.
Caps
Between8amand9am
CREGmustdeliverthe
maximumaverageand
individualceilinginCOP
kilowatthour[$/kWh]
Bid
reception
Between 9:00 am and
1:00 pm, Participants may
bid for the auction
Auction
Adjudication
Starting at 3:00 p.m., the
auctioneer will adjudicate the
auction
Target
Demand
Between 1:00 p.m. and
2:00 p.m. the MME will
inform the Target Demand

17. Adjudication Stage. Envelope N ° 2 - October 26
Sellers Offer
Max and Min quantity that
you are willing to accept at the
same price in MWh
Offer: Maximum quantity to sell
in MWh for each intraday block
and the price in COP
The price of any offer may
exceed the Individual
Maximum Cap.
The offer may not exceed the
maximum value declared for the
calculation of the seriousness
guarantee.
The amount of energy may not
exceed the transmission capacity
[MW] assigned in the connection
concept.
In each intraday block, one or more
offers may be submitted
The amount of energy offered
will be understood as the same
for each hour that makes up the
intraday block
The amount of energy of the
total offers may not exceed the
average daily energy
It should be checked for each
offer if there are constraints
For the calculation of the average
daily energy, the plant factor that
the UPME indicates for this
purpose will be applied.
Projects with OEF or awarded in
the 2019 auction will only be able
to bid for intraday Block N 3.
All offers that do not comply with
the specifications will be rejected.

18. z
Resolución
MME 4 0060
de 2021
Adjudication stage. Envelope N° 2 October 26
features offer buyers
For each purchase offer, the buyer have to register the amount of energy MWh-
day and the price in COP/kWh
Each buyer's offer will be understood for a period of twenty-four (24) hours.
The offer price shall be understood as the weighted average price per [COP/kWh]
which it will be willing to pay for all contracts awarded.
The offer may not exceed the maximum value declared for the calculation of the
seriousness guarantee.

19. Auction Register Precalifications
Requeriments
17- 27 August Hasta 6 September
Seriousness
guarantee
Presentation
Entry of Offers
Adjudication
Sign contracts
guarantee
compliamce
CRONOGRAMA
Interested Registered Registered Bullers/Seller Awarded
29 September 15 December
26 October