EDP Renewables is expanding its presence within the Latin American and global clean energy market with two separate deals reached with Atacama Energy and Lader Energy in Chile.
The two deals have a total consideration of $38 million for the acquisition of 628MW of solar and wind energy projects in Chile.
Commenting on the development, Miguel Stilwell de Andrade, the CEO of EDP Renewables, said: “We are committed to playing an active role in the energy transition and in the Latin American markets, where Chile offers world-class renewable energy generation potential. The entry into this market confirms the importance of the region for EDPR’s ambitious international growth strategy. This move reinforces our global leadership and we are confident of Chile’s growth potential for the renewable energy sector.”
The acquisition marks the presence of EDP Renewables in 16 international markets and the company’s 21st country of operation. Today, EDP Renewables touts to be the fourth largest producer of renewable energy globally.
The acquired 628MW are expected to be operational between 2023 and 2025. They comprise a 77 MW wind farm which has a 20-year power purchase agreement and set for operation in 2023 and 551MW of solar and wind farms, which are currently under development. The solar and wind projects under development are expected to be live by 2025 to participate in upcoming regulated tenders and private power purchase deals.
EDP Renewables plans to further strengthen its footprint in Latin America by pursuing green hydrogen opportunities. The company currently owns 0.4GW of renewable energy projects in operation in the region, as well as 1.1GW and 0.5GW of secured capacity in Brazil and Colombia, respectively.
Energy transition in Chile
EDP Renewables is hoping that its entry into Chile will help accelerate the energy transition in the country through increased deployment of green projects. Although Chile has massive potential for renewable energy generation, today the country is still heavily reliant on thermal power generation which is accounting for 50% of the country’s total energy mix.
However, the country’s regulation is supporting increased adoption of renewables evidenced by announced tenders and an increasingly growing portfolio of private power purchase deals.
Chile plans to expand the share of renewables excluding hydro within its energy mix to 20% by 2025 and 70% by 2050.