Spanish renewable energy developer Grenergy has bagged its first power purchase agreement (PPA) in South America's Colombia for 72 MW solar power capacity. It has struck the 15-year power supply deal with electricity utility Celsia.
The 2 entered into a framework agreement for the sale of some 120 GWh of clean energy annually from this capacity that adds up to 72 MW in all. The PPA will kick into effect for various projects from 2022 onwards as and when these become operational.
Grenergy says this capacity will generate enough clean energy to be supplied to 36,000 homes. It emphasized that this PPA is significant part of the company's strategy towards private PPAs with companies with credit quality to facilitate and improve the financial structure of projects.
Colombia, the management explained, is where Grenergy has a project portfolio of more than 500 MW in different stages of development. "In Colombia, the growth potential of solar energy is enormous. Therefore, signing our first PPA in the region, ensures us the objective of connection. By 2021, it opens the way for the rest of the projects in the portfolio and shows that we are capable of ensuring our growth in different markets," said Grenergy CEO David Ruiz de Andrés.
Indeed, Colombia should be on the radar for all renewable energy companies interested in the South American region since the government here plans to launch a 5 GW solar PV and wind energy auction in Q1/2021 (see Colombia Planning 5 GW RE Auction In Q1/2021).
In November 2019, Grenergy secured its 1st solar PPA in Spain with Galp for 200 MW capacity (see Grenergy Strikes Company's First Solar PPA In Spain).
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