EDP Renováveis enters Chile with projects comprising 628 MW of solar and wind energy
With this investment, the EDP Group is now operating in 21 countries, while EDP Renováveis has reached its 16th market. This expansion strengthens the company's strategic presence in Latin America, where it already has 0.4 GW in Brazil and is currently developing 1.6 GW in the Brazilian and Colombian markets.
EDP Renováveis, the fourth largest renewable energy producer worldwide, has signed an agreement to purchase a 628 MW renewable energy portfolio in Chile. These wind and solar energy projects are expected to commence operations between 2023 and 2025.
The deal was concluded through two agreements - one with Atacama Energy and the other with Lader Energy, totaling US$38 million - and is conditional on the success of each project's predetermined stages. With this portfolio, EDP Renováveis ramps up its global presence and reaches its 16th market, while the EDP Group enters its 21st market.
“We at EDP and EDP Renováveis are committed to playing an active role in the energy transition process and in Latin American markets, and Chile has enormous potential for renewable energy production. Our entry into this market confirms the importance of the region in EDP Renováveis' ambitious international growth strategy. This decision reinforces our global leadership, and we believe in Chile's growth potential for the renewable energies industry", said the CEO of EDP and EDP Renováveis, Miguel Stilwell d'Andrade.
This portfolio includes a 77 MW wind farm with a 20-year PPA (Power Purchase Agreement), which is expected to start operating in 2023, as well as 551 MW in under-development projects - two wind farms totaling 297 MW, and a 254 MW solar farm. These projects are expected to commence operations until 2025, and through them the company intends to actively participate in Chile's private PPA market and incoming regulated tenders.
Strengthened position in Latin America and strategic entry into the market
This asset portfolio allows the EDP Group to establish its presence in Chile with a significant, technologically diversified portfolio featuring projects in different stages of development. EDP Renováveis will continue to look for wind and solar projects, as well as for opportunities to expand green hydrogen in the country, in order to play an active role in Chile's energy transition process.
Entering the Chilean market also strengthens EDP Renováveis' presence in Latin America, where it currently has an operational capacity of 0.4 GW and an assured capacity of 1.1 GW in Brazil, as well as an assured capacity of 0.5 GW in Colombia.
Chile's energy sector is highly dependent on thermal generation, which still accounts for about 50% of the country's energy production mix. Therefore, Chile has strong growth potential for both wind and solar energy, as well as a stable regulatory framework, as long-term contracts show.
Chile has adopted an ambitious plan to generate 20% of its energy from non-hydro sources by 2025, and 70% by 2050. The roadmap also offers significant potential for the development of large-scale green hydrogen projects, providing an attractive long-term growth perspective for renewable energies in the country.