EDP Renewables (EDPR) is entering Chilean renewable energy space, its 16th international market, expanding its Latin American footprint. The Portuguese company has reached agreements with Atacama Energy and Lader Energy to acquire a 628 MW wind and solar portfolio in the country. Its total investment adds up to $38 million.
The projects comprise a 77 MW wind farm and 551 MW projects under development – including 2 wind farms of 297 MW capacity and a 254 MW AC solar park. All of these projects are scheduled to come online between 2023 and 2025, and will actively participate in the regulated tenders in Chile, added EDPR.
Chile's National Energy Commission had previously said it will launch a renewable energy auction in May 2021 to contract 2.31 TWh capacity (see 2.31 TWh Clean Energy Auction In Chile In May 2021).
Part of the Portuguese utility EDP for whom Chile is the 21st market it has entered into, EDPR said the Chilean portfolio allows the group to establish its presence in the country with a sizeable and technologically diversified portfolio at different stages of development. It plans to continue to expand in Chile with the addition of more wind and solar projects, along with green hydrogen growth opportunities.
As per EDPR's business plan 2021-2025, it will pursue diversification and growth in a 'sizeable renewables market with strong growth prospects. Chile falls into the category as the government aims to generate 20% of its electricity from non-hydro sources, and 70% by 2050, including opportunities in large-scale green hydrogen projects.
Chile's 'strong fundamentals' for solar and wind energies, and a 'stable regulatory framework with visibility on long term PPAs' is attracting interest from international investors to the country. Recently, France's Engie pledged to exit from coal by 2025 in Chile, and develop 2 GW renewable energy portfolio instead (see France's Engie To Exit From Coal In Chile By 2025).
Elsewhere in Latin America, EDPR holds 400 MW of operational assets in Brazil and is developing another 1.6 GW in Brazil and Colombia.